Which loan is right for me?
| Years you plan to stay in the home | Recommended program |
|---|
| 1-3 years | 3/1 ARM or 5/1 ARM |
| 3-5 years | 5/1 ARM or 30 year fixed |
| 5-7 years | 7/1 ARM or 30 year fixed |
| 7-10 years | 30 year fixed or 15 year fixed |
| 10+ years | 30 year fixed or 15 year fixed |
| Loan Program | Advantages | Disadvantages |
|---|
| 30 year fixed | Monthly payments are fixed over the life of the loan | Rate does not drop automatically if interest rates improve |
| 25 year fixed | Interest rate does not change | |
| 20 year fixed | Protected if rates go up | |
| 15 year fixed | Can refinance if rates go down | |
| 10 year fixed | Stability, stability, stability | |
| Loan Program | Advantages | Disadvantages |
|---|
| 10/1 ARM | Lower initial monthly payment | More risk, consider well |
| 7/1 ARM | Rates and payments may go down if rates improve | Payments may change over time |
| 5/1 ARM | May qualify for higher loan amounts | Potential for higher payments if rates increase |
| 3/1 ARM | 30 year term, no balloon payment | |
| 1 year ARM | Can be savvy move if you know that you will pay off the loan in a few years | |
| 6 month ARM | | |
| 1 month ARM | | |
| Loan Program | Advantages | Disadvantages |
|---|
| VA | 0 down payment | For eligible veterans only |
| No monthly mortgage insurance premium | VA Appraisers require repairs be done before closing |
| Loan Program | Advantages | Disadvantages |
|---|
| First Time Buyer Programs – PHFA | Lower down payment | Income and property value limitations |
| Easier to qualify | Some government subsidized programs may generate a recapture tax if you sell the house too soon |
| Lower rates may be available | Education courses may be required |
| Closing cost assistance available | Longer approval times |
| Loan Program | Advantages | Disadvantages |
|---|
| USDA Guaranteed Home Loans | 0 down payment | Income limits |
| No monthly mortgage insurance premium | Geographic limits |
| Flexible, common sense approvals | Primary residence, single family home only |
| Seller can pay closing costs or finance up to the appraised value | FHA appraisal rules |
| Loan Program | Advantages | Disadvantages |
|---|
| FHA | Low 3.5% down payment, can be a gift | Mortgage insurance can be expensive |
| No income maximums or special requirements to qualify like VA or USDA | Loan size maximums |
| Seller can pay up to 6% of sales price towards buyer’s closing costs | Appraiser requires health and safety repairs before closing |
| Loan Program | Advantages | Disadvantages |
|---|
| No Lender closing cost programs | No out-of-pocket lender fees at closing, you pay interest, taxes and insurance | Higher rates |
| Less money required to close | Higher payments |
| Refinance without increasing your loan amount | Larger loan sizes only |
| Loan Program | Advantages | Disadvantages |
|---|
| FHA 203k Property Rehab Loans | Finance improvements to a property in the loan, refinance or purchase | Longer approval times |
| | Must use contractors and HUD consultant |
| Loan Program | Advantages | Disadvantages |
|---|
| Reverse Mortgage | Excellent means for a senior to access equity in a home | High closing costs and mortgage insurance fees |
| No regular credit or income underwriting | Lump sum disbursement to get a fixed interest rate, ability to draw requires variable interest rate |
| | HUD counseling required |
| Loan Program | Advantages | Disadvantages |
|---|
| Investor Rehab loans | Fast closings | Expensive |
| Nearly any property condition | Short term |
| Common sense underwriting | |
In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:
- Mortgage Insurance solutions – are specialty!
- Debt consolidation programs.
- Home Improvement loans.
- You may qualify even if you’ve been turned down before!
