Loans
Residential Rate provides a variety of home loan options to fit your specific needs. Our team is dedicated to finding you the most affordable loan option possible, making the path to homeownership an easy one.
FHA
An FHA loan is a mortgage insured by the Federal Housing Administration. Allowing down payments as low as 3.5% with a 500 FICO score, the FHA loans are helpful for buyers who may be strapped for cash, have limited savings, or have lower credit scores. They are also great for first-time home buyers who may have limited options available.
An FHA home loan can be used to buy or refinance single-family houses, two- or four-unit multifamily homes, condos, and certain manufactured homes. For new construction builds or renovations within a home, a specific type of FHA loan is required.
These types of loans are federally backed mortgages and are issued by approved banks and lending institutions, who will evaluate your qualifications for the loan on a case-by-case basis. Generally, they are more flexible and forgiving than many conventional loans.
Jumbo Loan
A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, a jumbo loan is not eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac. This means that the lender is not protected from losses if a borrower defaults. Typically, jumbo loans are available with wither a fixed interest rate or an adjustable rate, and they come in a variety of possible terms.
Typically, a jumbo loan is used to finance luxury properties and homes in highly competitive local real estate markets. This means that they come with their own unique underwriting requirements and tax implications.
Refinance
Deciding to refinance a mortgage is a big decision influenced by your financial situation, available interest rates, and your long-term plans for staying in the house. Refinancing your mortgage can be a good money-saving option for many homeowners, especially if your credit score has improved and you are refinancing for a lower interest rate. However, it’s not for everyone, so it pays to work with a professional so that you consider important factors first.
When you refinance, your existing loan gets paid off and is replaced with a new one which has a different set of terms. In the transaction, several things about your loan could change, including your interest rate, the length of the loan, the loan balance itself, and even the type of loan you have. Since there are so many variables at play, it is best to work with a qualified mortgage expert to help you find the right solution to your refinancing needs.
VA Loans
The Veteran Administration loan, also known as a VA loan, is one of the greatest benefits of military service available. To date, millions of people who have served the country and their families have used a VA loan to purchase a house. Although VA loans are guaranteed by the federal government, the VA doesn’t actually produce the loan. This is why it’s so important for you to work with a lender who puts your best interests first. After all, you have earned it.
VA loans are especially generous, offering competitive interest rates, often requiring no down payment or mortgage insurance. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment for a score that low. Keep in mind that mortgage insurance is required for the life of an FHA loan and cannot be canceled.
For more information about VA loans and the eligibility requirements, contact us today.
Conventional
A conventional mortgage is a popular mortgage for prospective homebuyers who have strong credit scores and who have more available cash for a down payment. One of the major perks of obtaining a conventional mortgage is the ability to remove mortgage insurance, which cannot be removed from FHA mortgages.
A conventional home loan is a mortgage that isn’t guaranteed or insured by the federal government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower.
Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow the down payments to be as low as 3% for first-time buyers or lower-income homebuyers. Unlike FHA loans, conventional loans allow borrowers to eventually cancel their mortgage insurance or avoid mortgage insurance altogether if they put down at least a 20% deposit.
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