We offer many different loan programs to fit the needs of our customers. When choosing a loan option, first take a look at your financial picture and how you expect your finances to change. You will also want to decide how long you plan to stay in the home and how you feel about having your mortgage payments change. Below you will find a few of the loan options that we offer here at 1st Advantage Mortgage.
Fixed Rate Mortgage:
The most common type of mortgage is the fixed rate mortgage, which is generally for 15 year or 30 year periods. This is a good option for those who plan to stay in their home for the long term. The great feature of this product is that you have consistent principal and interest payments due to the fixed interest rate for the life of the loan.
Adjustable Rate Mortgage:
Adjustable Rate Mortgages, also known as ARMs, have a fixed rate for an initial period and then will adjust up or down based on a specific benchmark. The benefit here is that you can get a much lower payment than other products. Currently rates on longer term ARM, such as 10/1 or 7/1 loans, are offering some of the best interest rates on the market. This is a great product if you plan on selling your home or refinancing again within the initial period.
The Federal Housing Administration (FHA) provides loans for those needing a low down payment and those who may have less than perfect credit. FHA loans do require mortgage insurance premiums (MIP). The first MIP is a flat up front fee and the second is an annual MIP, which is calculated once per year, then paid in twelve installments either for 11 years or for the complete loan term, based on your loan-to-value (LTV), which is the percentage of the property’s value that is borrowed.
VA loans, guaranteed by the U.S. Department of Veterans Affairs, provide financing to active military personnel and to veterans with flexible loan terms and often require no down payment or mortgage insurance.
A jumbo mortgage is a home loan that exceeds the conforming loan limits of $417,000. These high loan amounts usually require high income, excellent credit, and a larger down payment. However, we offer jumbo loans for as little as 15% down with no mortgage insurance and no fees to waive escrows. These loans can be a fixed rate or an adjustable rate mortgage.
Piggyback/Combo Mortgage Loans:
We offer simultaneous 1st and 2nd mortgages which is a great way to avoid having to pay mortgage insurance by keeping the 1st mortgage loan-to-value (the percentage of the property’s value that is borrowed) under 80% or having to pay jumbo loan pricing by keeping the 1st mortgage under conforming/non-jumbo limits.
Fannie Mae Direct 3% Down Program:
This program is a great alternative to FHA financing as there is no up front funding fee. The monthly mortgage insurance (MI) is typically lower than FHA monthly premiums and there is the option to eliminate monthly MI by making a onetime single premium payment. The credit score minimum is 680 and the debt to income ratio cannot exceed 43%.
Borrowers looking to purchase Fannie Mae Properties can apply for a HomePath® loan which can be approved with as little as 3% down with no mortgage insurance and no appraisal.
Portfolio Lending Options:
We have more options with our portfolio lenders and broader guidelines since they don’t have to adhere to Fannie/Freddie restrictions. This includes asset depletion programs which are designed specifically for borrowers that may not necessarily have regular income but can use their investment/trust funds.