Conventional

Conventional loans are mortgages that are not converted by any government program of insurance or guarantee. Such loans may be eligible for purchase by the major secondary market agencies Fannie Mae and Freddie Mac, which offer standardized underwriting guidelines and loan amounts up to $417,000 for a single family residence. Loans within these parameters are called Conforming Conventional loans. These loans can carry fixed or variable (ARM) rates and a variety of repayment terms that can be tailored to your individual needs. Down payment requirements may be as little as $500.00, although loans with less than 20% down require mortgage insurance. Generally, these loans do not have prepayment penalties.

FHA

FHA loans are ideal for first-time home buyers and low-to-moderate income borrowers, although there is no upper limit to the amount of income a borrower can make. FHA Loans are made by approved private lenders such as First Mortgage Corporation, but insured by the Federal Housing Administration. Down payments may be as little as 3% of the sales price of the property. Closing costs are regulated and limited for the borrower's protection. These loans can be either fixed interest rate or adjustable interest rate with 30-year repayment terms. Each area of the country has it's own designated maximum loan amount and is determined by the Department of Housing and Urban Development (HUD). Please call us to find out the maximum FHA loan amount available in your area.

VA

Available to individuals who have served or are currently in the U.S. armed forces that meet eligibility requirements, VA mortgages may be provided with no down payment required, making them ideal for first-time borrowers. Loan amounts may be as much as $240,000 with full entitlement, and can be higher if there is down payment. VA loans are made by approved lenders, such as First Mortgage Corporation, and guaranteed by VA. Closing costs are regulated for the protection of the Veteran. Loans are assumable with release of liability and there are no penalties for prepayment.

Adjustable Rate Mortgage

These are available on both FHA and Conventional Loans.

An adjustable Rate Mortgage (ARM) features a variable interest rate, which is periodically adjusted. There are several plans to choose from wherein the period of time before the first adjustable can be at the end of the first, third, fifth or seventh year.

ARMs may provide the security, flexibility and affordability prospective home buyers desire. These loans are especially attractive to home buyers who plan to trade up in future years. Generally, initial interest rates are lower than on fixed rate mortgages.

Jumbo or Non-Conforming

If the anticipated amount of your mortgage loan exceeds the maximum amounts permitted with Conforming Conventional loans, we offer a variety of mortgage options, which will meet your needs. So-called non-conforming jumbo loans may be up to $5 million and can be either fixed rate or adjustable rate mortgages. Underwriting guidelines may vary depending on the program selected, down payment and actual loan amount. Repayment options also vary, enabling you to select a mortgage that fits your budget.

Low Documentation Loans

No Income/No Asset, Stated Income and No Ratio Loans. The NINA does not require income; employment or asset verification and the No Ratio and Stated Income loans do not require income verification.