Mortgage Loan Products

Refinances

Once you’ve built up some equity in your house, you can refinance your mortgage to access some of that equity. Keep in mind you’ll accrue the same type of fees and costs as with any other mortgage, but there are many good reasons to refinance:

• Take advantage of a lower interest rate.

• Reduce your monthly mortgage payments.

• Use the equity to pay off other debts (see debt consolidation loans).

• Pay off your house more quickly by refinancing with a 15-year mortgage.

• Use the equity to pay for house repairs and upgrades.

• Pay for your children’s college tuition. Or your daughter’s wedding.

• Purchase an investment property or a second home.

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100 Percent Finance Options

With these mortgage loan products, you don’t need any down payment. If you qualify, take advantage of these programs to buy your first house. Two examples of mortgages that require no down payment are VA loans and USDA loans. Talk to your independent mortgage lender about the benefits of these mortgage loans.

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First-Time Homebuyer Programs

GoPrime Mortgage, Inc. can work with you to find a loan as a first-time homebuyer. Many mortgage loan programs are designed to help first-time homebuyers. Your loan officer will find the one that suits you and your situation. Here are some examples:

• Mortgages like FHA loans and USDA loans require little or no down payment.

• Government-guaranteed programs like VA loans and FHA loans can help you overcome past credit problems.

• You can take advantage of mortgage credit certificates (MCC) to get tax credits.

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Down Payment Assistance Programs

The U.S. government has put many programs in place to help first-time homebuyers. Down payment assistance programs can help you overcome the most significant hurdle facing many first-time homeowners: the money needed to start the process. VA loans, FHA loans, and USDA loans are examples, but other programs can help too:

• Grants are available to help to cover closing costs and assist with down payments. Each grant is county-specific, so please reach out to me for details.

• In Western North Carolina, you may be able to get assistance from Mountain Home Opportunities (MHO).

• If you qualify, you can seek help from NC Housing Finance Agency, a state agency.

Let’s talk today!

Modular Home Financing

A modular (or prefab) home is not a manufactured (or mobile) home. Modular homes are not built on-site, which is the definition of a “stick-built” or traditional home, but they also are not built with axles and wheels – instead a modular home is assembled at a site on a permanent foundation. Modular homes cost a lot less than stick-built homes, but mortgage loan products are still available. Benefits include:

• You could get a loan to build a new modular home. Once the home is built, the loan becomes a regular mortgage.

• FHA and VA loans are available to help you purchase a modular home in some instances.

Reach out with any questions!

Debt Consolidation

If you have credit card debt at a high interest rate and you have equity in your property, rolling your credit card debt into your mortgage could have some advantages:

• Since your mortgage carries a much lower interest rate (sometimes 10–15% lower), you could save money.

• You’ll lower your monthly payments if you consolidate your credit card debt into a new 30-year mortgage.

• These loans are valuable for people who have had one-time expenses.

• You can claim tax deductions on mortgage interest but not on credit card interest (consult your CPA or tax accountant).

Talk it through with me today!

VA Loans

The US Department of Veteran Affairs (VA) strives to help veterans, active duty service members, and eligible surviving spouses get mortgage loans through a lender. You will  need a veteran’s certificate of eligibility and a VA-assigned appraisal to qualify. Benefits include:

• VA loans offer a 100% finance option, eliminating the need for a down payment.

• Lenders are encouraged to relax credit requirements.

• VA loans do not require monthly mortgage insurance since the government guarantees the loan.

• Often, you can get lower interest rates with a VA loan.

Talk to me about VA loan options today!

USDA Loans

Sometimes referred to as “rural housing loans” because the US Department of Agriculture loans are guaranteed, USDA mortgage loans are great for first-time homebuyers. USDA loans have to be used for your primary residence, not a second home, and you have to meet the eligibility requirements. Here are some of the benefits:

• USDA loans do not require any down payment.

• You can finance up to 100 percent of a home’s value.

• USDA loans are restrictive in certain areas (get details)

• You may qualify for lower mortgage insurance premiums (PMIs).

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Second Home Purchases

Buying a second or vacation home requires that you qualify for a mortgage loan in addition to your primary residence. Be sure to first consider the implications of owning a second home, such as taxes, insurance, and maintenance. If you can meet the requirements and have a 10 to 20 percent down payment, you could find favorable terms and benefits:

• An independent mortgage lender has tools and products explicitly geared for second-home buyers.

• You could find favorable loans, such as jumbo loans.

Speak with me about financing your second home!

Manufactured (Double-Wide) Home Financing

Some may find it challenging to get financing for a manufactured home or “double-wide” home since many banks don’t offer loans for these types of homes. However, you may be able to get an FHA or VA loan to cover the costs of buying a manufactured home, as long as you meet some conditions:

• The house has to have a permanent foundation.

• The house must be built after June 15, 1976, and 400 square feet or more.

• USDA loans are available, but only for brand new manufactured homes and double-wides.

Speak with me about a manufactured home today!

Renovation Loans

Known as FHA 203k loans, these mortgages help you pay for home renovation projects. They are not lines of credit that you can use for any purpose, know that if you take out a renovation loan you have to prove that you’re using the funds on a home renovation project. That’s due to one of its primary benefits:

• Your loan amount is based on the upgraded value of your house after the renovations are complete.

• These mortgage loans are great for do-it-yourself people who want to buy a house to rehab it.

• With this mortgage, you don’t receive the money all at once, the funds are dispersed as needed and paid to the contractor doing the work. The lender holds the money in an escrow account, keeping the contract and borrower safe.

Get moving towards your renovation today!

Fixed-Rate Mortgage Loans

The most popular mortgage loan products by far are fixed-rate mortgage loans, which have a set interest rate that doesn’t change over the course of the loan. Most fixed-rate loans have a set length of 15 or 30 years. Some benefits of a fixed-rate mortgage include:

• Steady monthly payments that don’t change.

• It’s a “safe” loan, meaning it’s free of surprises.

• You can lock in 40-year interest rates for long-term security.

Speak with me about fixed-rate mortgages today!

Conventional Loans

Conventional loans are ideal for well-qualified purchases, second homes, or investment properties. You must have a good credit score, meet a minimum income threshold, and be ready with between 3 and 20 percent for the down payment. These mortgages still offer good benefits:

• Conventional loans have fewer restrictions than other loan types.

• They’re excellent options for second homes, vacation homes, or investment properties.

• Conventional loans require no upfront mortgage insurance premium (PMI) or funding fee.

Jumbo Loans

Suppose you’re ready to buy your dream house or a luxury second home. In that case, you may need to borrow a significant amount more than your average homebuyer. With a Jumbo loan you can borrow more to buy or refinance a home. Here are some Jumbo loan benefits:

• Since conforming mortgage loans are limited in the continental US, Jumbo loans provide a great alternative if you need more than that.

• It’s easier to apply for a Jumbo loan than it used to be because they are more in demand.

• Your independent mortgage lender has several types of Jumbo loans to offer you.

• A Jumbo loan refinance can save you money on your monthly mortgage payment.

Investment Property Purchases

Investment properties can include everything from single-family homes to 1 – 4-unit buildings and condos. It’s always wise to do your research before you buy to learn about the expenses attached to investment properties. Benefits include:

• When investing in real estate, decide if you want a short-term or long-term investment. This decision will drive others.

• You can gain a diversified portfolio of assets that includes property.

• You can leverage the rent to pay down the mortgage while building equity in an appreciating asset.

Speak with me about investment properties today!

FHA Loans

Of the many mortgage loan products well suited for first-time homebuyers, FHA loans have more relaxed requirements than conventional mortgages. In some cases, you can have a recent bankruptcy in your past and still qualify for a loan. Protected by the Federal Housing Administration, these loans may be attractive to first-time homebuyers for these benefits:

• Down payments for an FHA loan may be as low as 3.5% of the purchase price, not 20% or more.

• You can use a monetary gift towards your down payment and closing costs.

• You can choose between a fixed or adjustable rate with an FHA loan.

• FHA loans may be streamlined, which means less paperwork, simplifying the process.

• Grants and down payment assistance programs help you cover closing costs.

Let’s talk today!

Adjustable-Rate Mortgages

Also known as an ARM, this mortgage type has an interest rate that can fluctuate with market changes. Typically, the rate starts low for the first five-to-seven years, with the interest rate is capped at a certain point. These mortgages are not usually recommended for first-time homebuyers. Benefits of an adjustable-rate mortgage include:

• You can save much money if you plan to pay off the mortgage within the first 5-to-7 years.

• This type of mortgage allows you to build equity faster than with a fixed-rate loan.

• An adjustable-rate mortgage improves your monthly cash flow.

Is an ARM right for you?

Mortgage Credit Certificates (MCC)

In North Carolina, if you qualify, you can claim up to 30 percent of your mortgage interest (up to $2000 a year or $166.66 a month) on your federal taxes. Administered by the NC Housing Finance Agency, the MCC program is available for first-time homebuyers only. The benefits of this program are obvious:

• You can save up to $2000 every year on your taxes, leaving you with more money in the bank.

• You can still use the remaining 70 percent of the interest paid as a tax deduction.

• Your lender issues an MCC, but you have to claim them on your taxes. Don’t forget!

Reach Out Today!