Home Mortgage Loan ProgramsDownload our newest eBook "The Essential Guide to Buying Your First Home." From FICO scores to down payments to interest rates, it's the best resource for first time home buyers today! Now, back to mortgage options. AmeriFirst Home Mortgage offers a variety of loan programs to meet the needs of our diverse customer base. From first time home buyers to second-home buyers, including step-down buyers and home buyers looking for an upgrade, you have a choice between fixed-rate conventional loans, government-backed programs like FHA loans, home improvement loans like the FHA 203k or HomePath® Renovation or even a reverse mortgage loan. Below is a listing of the solutions AmeriFirst Home Mortgage has available. Additional InformationMortgage loans are typically categorized as either fixed rate or adjustable rate. Sometimes they can even be a combination where the rate is fixed for a certain period of time and then converts to an adjustable rate for the remainder of the loan term. Common loan terms are 30 or 15 years, but we also offer terms as short as 10 years and can offer 20 and 25 year terms in some instances. In most cases, the shorter the loan term the lower the interest rate (but the higher the payment since the loan is being amortized over a shorter period of time). As an example, total interest paid in a 15 year loan may end up being less than half what you’d pay on a 30 year loan, but your monthly payments will be higher. HomePath MortgageHomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed. Benefits to the borrower include:
HomePath Renovation MortgageHomePath Renovation Mortgage is a home improvement loan which allows a borrower to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation - up to 35% of the as completed value, no more than $35,000. Benefits to the borrower include:
Fixed Rate Mortgage LoansThe interest rate is fixed for the life of the loan, regardless of what rates do over the life of your loan. This ensures that your payment remains the same each month, which can make budgeting a lot easier. However, if your loan has an escrow account that is collecting for taxes or insurance, that likely will change over time and cause your payment amount to change annually. Adjustable Rate Mortgage Loans (ARMs)The interest rate changes periodically by adding what’s referred to as a “margin” to an index specified in mortgage documents. These two numbers are combined to create the loan’s interest rate and often times have limits (sometimes referred to as “caps and collars”) that ensure the rate does not increase over a certain amount over the life of the loan. As an example, a 1-year ARM will adjust every year, typically on the anniversary date of the loan. Because the rate changes as the index changes with fluctuations in the market, monthly payments on an adjustable rate mortgage loan likely will be different every year. However, if you are planning on being in your home a short period of time, an ARM may be a very good option with a lower interest rate. Hybrid Mortgage LoanThe typical hybrid mortgage loan combines an initial fixed interest rate for a specified period of time and then converts to an adjustable rate for the remainder of the loan term. Because these loans have a variety of options, they can often times serve a wider variety of borrower needs (and qualification standards are often more lenient than a traditional loan). Home Equity Loans & Second MortgagesIf you've been in your home for several years, or you've done a good job of paying down the principal balance on your loan, chances are you've built up some equity that you can use to make larger purchases (such as an addition to your home, a new vehicle or even college tuition for a child). Equity loans (which are really second mortgages) are typically set with specific term and a set payment amount (much like a "traditional mortgage loan"). The loan amount will be based on your current mortgage balance compared to your home's value and then we apply a percentage amount to determine your loan amount. We'll be happy to help you determine the available amount based on your situation. FHA Mortgage LoansDespite what many people think, the Federal Housing Administration (FHA) does not actually issue mortgage loans, it provides mortgage insurance which protects lenders like AmeriFirst Home Mortgage. Customers like FHA loans because they have more liberal qualification requirements, much like hybrid mortgage loans (mentioned earlier). In addition, they typically have a lower down payment requirement (as low as 3.5%), lower monthly insurance premiums and often have lower closing costs. This makes an FHA loan a very attractive loan for the first-time home buyer and also for families with low and moderate income levels. VA Mortgage LoansSimilar to FHA loans, VA loans are guaranteed by the U.S. Department of Veteran Affairs and lenders like AmeriFirst Home Mortgage make the loans to eligible veterans for the purchase, construction, or energy-saving improvement (approved by the lender and VA) of a home. VA loans share similar eligibility requirements as FHA loans, often with lower closing costs, and more liberal terms (usually without requiring a down payment) and even negotiable interest rates. If you qualify, the VA will issue a certificate of eligibility that you can provide a lender when making application for your loan. We cover VA mortgage loans on the AmeriFirst blog, too. Rural Development (RD) Mortgage LoansUnder the Guaranteed Loan program, Rural Development guarantees loans made by private sector lenders. (A loan guaranteed through RD means that, should the individual borrower default on the loan, RD will pay the private financier for the loan.) The individual works with the private lender and makes his or her payments to that lender. Under the terms of the program, an individual or family may borrow up to 102% of the appraised value of the home, which eliminates the need for a down payment. Since a common barrier to owning a home for many low-income people is the lack of funds to make a down payment, the availability of the loan guarantees from RD makes the reality of owning a home available to a much larger percentage of Americans. You can read more about RD loans at the AmeriFirst blog.
Construction LoansIf you are getting ready to undertake a building project, whether it's your new dream home or an addition, AmeriFirst Home Mortgage has several construction loan programs to fit your needs. We work closely with many area builders and have a simple draw procedure to ensure that your project remains on track. 203k Rehabilitation LoansOne of the most popular and diverse home improvement loans is the FHA 203k. You can make home improvements to the house you want, or the home you already own. Use the funds for simple upgrades to your home like a kitchen or bath improvement, or to completely reconstruct a home that is presently unlivable. You can even use a 203k Rehabilitation Loan to tear down an existing structure and build a new one using some portion of the existing foundation. You can borrow up to 96.5% of the appraised value - based on the value when the improvements or repairs are completed. You can download our FREE FHA 203k Survival Guide at the button below to help better understand this program. We're also a member in the professional group 203k Forum, trading information across the country in order to better educate ourselves to make your 203k experience a smooth one. Reverse Mortgage LoansA reverse mortgage is designed specifically for elderly home owners to help them benefit from the equity they have built in their home without having to sell their house or make payments. The loan can be funded through a lump sum payment, monthly payments or even a line-of-credit. One of the primary advantages to a reverse mortgage is the loan does not have to be paid until the homeowner sells the property, moves or passes away. In addition, the money received from the loan is not considered taxable income, nor is it considered in determining Social Security or Medicare benefits. The elderly homeowner is secure in their home even if the loan term ends or the loan grows beyond the value of the property. While Reverse Mortgages have received bad press in recent years, it's not a scam and they're not evil. Read more about reverse mortgages at the AmeriFirst blog. Apply NowInterested in applying for a loan? AmeriFirst Home Mortgage makes it easy and provides several options for you to complete the application process. We look forward to hearing from you soon. |
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