Home Loan Options
Our priority is finding you the perfect home loan for your budget. With 400+ loan options, we'll help match you with a mortgage solution that fits your financial goals. Whether you’re looking to buy, renovate or refinance, The Crockett Team at PrimeLending is ready to assist you with all of your lending needs.
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An FHA loan is a home loan that’s backed by the Federal Housing Administration. Banks and credit unions issue the loan and the FHA provides the backing, which means that if you can’t pay the mortgage, the FHA pays the lender instead. Designed for low- to moderate-income borrowers, FHA loans require smaller down payments than conventional loans and can work with low credit scores. WHAT ARE THE BENEFITS OF AN FHA LOAN? FHA home loan programs typically help first-time homebuyers, seniors or others with limits on what they can afford.
FHA home loans offer the following benefits:
A low 3.5% down payment
Flexible income and credit requirements
Low closing costs
FHA FIXED-RATE HOME LOANS
30-year fixed rate FHA
25-year fixed rate FHA
20-year fixed rate FHA
15-year fixed rate FHA
Either option offers the same interest rate stability, but the 15-year fixed rate FHA gives you greater power to move. With a higher monthly payment, you build up more equity in the house sooner. This means you can use proceeds from a house sale to make a bigger down payment on a future purchase, making it a smart long-term solution. A 30-year fixed rate FHA is the better option if you don’t plan on moving any time soon, or at all. Senior citizens often go this route when they look to downsize.
FHA ADJUSTABLE-RATE MORTGAGE
An FHA adjustable-rate mortgage (ARM) lets homeowners pay a low introductory interest rate for the first few years, then move to a new home before it adjusts, possibly upwards. If you know you want to buy a starter home that you will leave in a few short years, then an ARM could make sense for you. PrimeLending offers the 5-year hybrid ARM (fixed for the first 5 years, change annually after that, annual cap of 2 percentage point and a lifetime cap of 6 percentage points.
CONVENTIONAL LOANS
A conventional loan is a mortgage that is not insured, or guaranteed, by the federal government. They’re popular with borrowers who have good credit, a stable job and income, who can afford a down payment, and people who are financially stable overall. Government-backed loans like the VA, FHA, USDA and other loan programs are designed for people who can’t afford a significant down payment, have less than perfect credit, are first-time homebuyers, and others who may need some type of financing assistance.
CONVENTIONAL LOAN BENEFITS
Conventional loans are a good choice for new home purchases and refinancing. Unlike government-backed loans, they are sometimes harder to get because of the additional credit and financial requirements, but you will eventually discover that they offer much more flexible terms and fewer restrictions, which makes them more convenient.
ADVANTAGES OF CONVENTIONAL LOANS FROM PRIMELENDING
They are much simpler to apply and qualify for, with less paperwork, and you’ll have fewer rules and regulations to meet.
You have a lot more options to choose from, the terms are more flexible and easier to customize and match to your financial situation and goals.
They can be used for almost all types of properties, from single- and multi-family homes to condominiums and even manufactured homes.
If you have at least 20% to put down on a purchase, or at least 20% equity when refinancing, you are not required to pay mortgage insurance.
Conventional loan rates are often quite low since we know the borrower is financially stable and has good credit.
TYPES OF CONVENTIONAL LOANS
Fixed-rate mortgages have an interest rate that does not change for the life of loan. 15- and 30-year terms are the most common. They offer stable, predictable payments that also don’t change. Monthly payments are usually very low because they’re spread out over time. They’re great long-term loans if you plan to stay in your house for at least seven or more years.
Adjustable rate mortgages have an interest rate that does change. There’s an initial up-front period when the rate is fixed. During this time, the interest rate and monthly payments are even lower than a fixed-rate mortgage. However, after the initial period, your rate can change or adjust, usually higher, along with your monthly payments. Adjustable rates are ideal for people who don’t plan on staying in their home past the time when the interest rate will change, usually after 3-, 5-, 7- or 10-year terms.
Jumbo loans are quite common. What makes them different from conforming loans is rather than meeting guidelines established by Fannie Mae, the Federal National Mortgage Association, and Freddie Mac, the Federal Home Loan Mortgage Corporation, the lender sets the guidelines. These loans with a different set of guidelines, or requirements for getting one, are important because average home prices vary widely across the United States, within states, and even cities and communities. The limits are based on average home prices.
By comparison, conforming loan regulations are government-sponsored enterprises that buy or secure mortgages from lenders like investments. This helps make more money available to lenders they can then use to provide new loans to more borrowers. The regulations they establish are designed to create fairness to borrowers by establishing uniform mortgage documents and national standards for mortgages. In other words, you might consider jumbo loans to be a bit riskier than a conforming loan, but PrimeLending is here to guide you through those waters.
HOW TO QUALIFY FOR A JUMBO LOAN
As with any standard mortgage loan, jumbo loans come with a series of steps to take. Some of the major qualifications include:
A debt-to-income ratio lower than 43%
Cash reserves—it’s not uncommon for some borrowers to ask for proof that you have enough money in the bank
Financial documentation that extends beyond a conforming loan, including full tax returns, W-2s and 1099s.
WHY SHOULD I GET A JUMBO LOAN FROM PRIMELENDING?
Fixed-rate and adjustable-rate jumbo loans are available
Some jumbo loan programs allow down payments in the form of a gift
A VA loan is a great benefit to military personnel during and after their service. PrimeLending understands the importance of a “home base” for military and theifr families and is proud to be able to help active and retired military use this product to meet their unique needs. Like conventional loans or government-issued loans, VA loans come in different varieties.
Benefits of a VA Loan
VA loans are partly guaranteed (typically a quarter of the loan value) by the U.S. Department of Veterans Affairs and offer the following benefits:
No Down Payment (Waiver based on VA Eligibility)
Higher Loan Value
No Private Mortgage Insurance
Limit on Closing Costs
Option for Seller to Pay Closing Costs
No Penalty Fee for Early Payoffs
Possible VA Assistance if you have Difficulty with Payments
Who is eligible to receive a VA loan?
VA loan eligibility depends on certain criteria. To obtain a VA home loan, an applicant must first obtain a Certificate of Eligibility (COE). Qualified applicants are those that have received a discharge other than dishonorable from an eligible branch of the service, including the U.S. Army, Navy, Air Force, Marines, Coast Guard, National Guard and Reserve and U.S. Military academies. They must also meet certain eligibility requirements.
VA Fixed-Rate Home Loans
A 30-year fixed-rate option gives you a stable, predictable monthly payment. These loans are great for people settling down in one house over a long period of time. They give deployed soldiers a warm place to come home. A 15-year fixed-rate option could help current service members who would like to build equity more quickly. You pay more monthly, but this pace builds more equity in your home.
VA Adjustable Rate Mortgages
The flexibility of a five-year adjustable-rate mortgage can be appealing to current military service members expecting to move in the next few years. ARM homeowners pay a low introductory interest rate for the first few years, then move or refinance before it adjusts upward.
VA Jumbo Home Loan
The VA will guarantee a maximum of 25% on your home loan.
Getting a construction loan to build your very own custom home from the ground up is a little different than buying an existing home. We have the perfect construction loan solution to help you make your dream home a reality. Here are a couple of considerations to keep in mind as you get started:
Use a qualified builder. Anyone less than a licensed general contractor with a proven track record will make getting a loan harder. If you’re acting as your own general contractor, you may have additional requirements to prove you’re qualified for the job.
Get an appraisal. How do you appraise something that doesn’t exist? Most likely, you will need to have an appraiser consider any specs or blueprints of the house, in addition to the value of the land. They compare that information to similar homes in similar locations and determine the value from there.
TWO CLOSINGS. ONE LOAN. IT’S THAT SIMPLE.
Luckily for you, PrimeLending can help with this complicated process. We offer a streamlined two-step construction loan process. First, you get a temporary loan to start the project. Second, once construction is complete, we’ll refinance your initial loan into a traditional mortgage at the most favorable terms possible. Here are just a few benefits that we provide to make the process smoother:
We’ll lock the interest rate for your second refinance loan up to 12 months. This protects you against rate increases, and the lock fee will be refunded when the loan closes.
Your first loan will come with a fixed rate and you only pay interest on money used for construction, not the entire loan amount. When you refinance your initial loan to your regular home mortgage, you’ll receive closing cost credits that may result in low or no cost refinancing.
Coming up with the cash for a down payment and/or closing costs on a house may seem challenging or even impossible to some homebuyers, but it doesn’t have to be. There are programs that can help make homeownership more affordable, many with low- and no-down payment options, and some connected to popular government-backed loans.
DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAMS:
Conventional 97 — available through Fannie Mae and Freddie Mac, this program requires a 3% down payment and is available for the purchase of single unit primary residence properties. It’s best suited for buyers with excellent credit or average credit.
HomeReady® — this Fannie Mae-backed program allows for a 3% down payment and offers discounts on mortgage rates and private mortgage insurance; it’s targeted at multi-generation households where multiple people contribute to the family income and can be anyone with an income below the average for the area.
Home Possible® — a Freddie Mac mortgage option that is a great option for first-time homebuyers; it requires a down payment of only 3%.
FHA Loan Program — allows for down payments of just 3.5% and can be used for primary residences with 1-4 units; a big advantage is that FHA mortgage rates tend to beat conventional rates.
VA Loan Guaranty — this program is available to veteran or active duty military borrowers; there is no down payment requirement and no mortgage insurance charge, regardless how little you choose to put down.
USDA Home Loan — is available to buyers in less dense parts of the country, including rural areas and many U.S. suburbs as well; it allows for 100% financing and offers reduced mortgage insurance costs as compared to other low- and no-down payment loans.
203K Renovation Loan — a great solution if your first home is a fixer-upper; if your purchase requires repairs, there’s a low minimum down payment requirement of only 3.5% and the loan covers the value of the property plus the repair costs.
State Down Payment Assistance Programs — in addition, there are thousands of state-specific DPA programs for which you may qualify. The U.S. Department of Housing and Urban Development (HUD) maintains an updated list(link opens in a new tab) of active programs.
4) Certain restrictions apply. Not available in all areas. Please contact your PrimeLending loan officer for more details.
Purchase Loan Products
Refinance Loan Products
Conventional loans are popular refinancing options among homeowners who have good credit and stable finances. Since conventional loans are not backed by the government, they offer more flexible terms and fewer restrictions. And, if you have at least 20% equity, you can avoid paying private mortgage insurance (PMI).
Here’s why you should consider refinancing with a conventional loan:
They are much simpler to apply and qualify for, with less paperwork and fewer rules and regulations.
You have a lot more options to choose from and the terms are more flexible and easier to customize.
They can be used for almost all types of properties, from single- and multi-family homes to condominiums and even manufactured homes.
If you've been in your home for some time or you've made some upgrades — or both — chances are your home may be worth more than what you owe on your mortgage. The difference between your home's value and what you owe on it is your available equity, and when you choose a cash-out refinance, you can gain access to that extra equity.
WHY CHOOSE A CASH-OUT REFINANCE?
To pay for college or other education
To pay for other major expenses like a wedding, dream vacation or family reunion
To make upgrades to the home, like a pool, open concept or new kitchen
To make improvements like walk-in-showers that will enable older homeowners to "age in place"
To fund a nest egg or other investments
To consolidate debt
A USDA loan is guaranteed by the U.S. Department of Agriculture and offers numerous advantages to homeowners. While your property must be in a “rural” area outlined by the USDA, you may be surprised at what they deem rural, as many suburban areas may qualify.
Benefits of refinancing with a USDA loan include:
Low interest rate. Since the loan is guaranteed, the rate is typically lower because it’s not tied to your credit score or a down payment amount.
Low private monthly insurance. As of 2019, the upfront mortgage insurance rate on a USDA loan is just 1%, with an annual fee of only 0.35%, which are the lowest numbers of virtually any mortgage program.
100% financing. The upfront fee can be rolled into the loan, eliminating an out-of-pocket expense at closing.
Flexible credit guidelines. If you have lower credit scores or your credit history isn’t perfect, you may still meet the program’s qualifying requirements.
An FHA (Federal Housing Administration) refinance loan is a government-backed program that typically offers more flexibility when it comes to requirements, interest rate and closing costs. Loans are available for fixed-rate, adjustable-rate and cash-out refinance options.
FHA Adjustable-Rate Mortgage (ARM) Refinance Homeowners start with an introductory rate for the first few years before it adjusts every year after. With an ARM, your monthly payment is typically lower since the rate starts lower. ARMs are great options for people who think they may move and sell the home within five years.
FHA Fixed-Rate Mortgage Refinance Choosing between a 15-year or a 30-year fixed-rate will make the difference in your monthly payment and how much goes toward the principle balance. A 15-year loan will have higher payments but will build equity faster (while also ensuring you pay off the loan quicker). A 30-year means you will have a lower monthly payment, more goes to interest and you don’t build equity quite as fast.
FHA Cash-Out Refinance If you've been in your home for some time or you've made some upgrades – or both – chances are your home may be worth more than what you owe on your mortgage. The difference between your home's value and what you owe on it is your available equity, and when you choose a cash-out refinance, you can gain access to that extra equity as cash.
VA refinance loans (backed by the U.S. Department of Veteran Affairs) are designed for current and veteran military personnel looking to refinance their mortgage. Whether your current home loan is VA or another loan type, eligible service members can use a VA loan to take advantage of exclusive benefits and savings.
What kind of benefits?
No private mortgage insurance (PMI)
Easier credit requirements
Limit on closing costs
Higher loan value
Possible assistance if needed
If you meet one or more of the following requirements, you may be eligible for a VA loan refinance from PrimeLending:
Active service duty for 90 consecutive days of combat
Active service duty for 181 days of peace
Served 6 or more years in the National Guard or Selected Reserve
Are a spouse of a veteran who died while in service or from a service-connected disability
Have a Certificate of Eligibility
Renovation Loan Types
FHA 203k
Best for older homes that need structural repairs like roofing. FHA 203K Limited is for quick fixes up to $35,000.
Fannie Mae Homestyle®
For fixer-upper purchases or updates to your current home. Add a new fence, upgrade your kitchen and more!
EZ "C"
This is for short turn-around, small upgrades on a newly purchased home. Updates must add value to the home.
Energy Efficient
Add insulation, weatherizing solar panels or energy efficient updates with this eco-friendly renovation option.
Pool Escrow
Add a pool, patio, outdoor kitchen or landscaping and roll the cost of your new oasis into your current mortgage.
Repair Escrow
Whether you're making repairs to sell or buying a fixer-upper, this option gives you the ability to make the changes you want.
4) Certain restrictions apply. Not available in all areas. Please contact your PrimeLending loan officer for more details.