| FHA
- |
Loans
are insured by the Federal Housing Administration a sub-agency
of the Department of Housing and Urban Development (HUD). The
maximum loan amount in Bexar County is $172,632 for single family
residences. Higher loan amounts are available for 2,3 and 4
unit owner occupied properties. |
| VA
- |
VA
loans are loans insured by the Veterans Administration, a division
of the Department of Veterans Affairs. VA loans are made only
to active duty, honorably discharged and retired military personnel.
The maximum loan amount for VA loans is $359,650. |
| Conventional
- |
Conventional
or sometimes called "Conforming" loans are made by
investors and guaranteed by either the Federal Home Loan Mortgage
Corporation or the Federal National Mortgage Association. The
limit for these loans is $359,650 on single family residences
and any amounts borrowed above an 80% loan to value must be
insured by a private mortgage insurance company. |
| Stated
Income - |
These
are non-conforming loans where the borrower's income is not
verified in any way. Normally these loans require excellent
credit and can be anywhere from .375% to 2% higher than conforming
rates. These are loans are most often utilized by self-employed
or commission compensated borrowers. More and more B&C lenders
are doing similar loans as this portion of the market continues
to grow. |
| ARM's
- |
Adjustable
Rate Mortgages (ARMs) can be either conforming or Jumbo and
have a variable interest rate. The interest rate on these products
is usually indexed off the one year treasury bill and adjusts
annually after an initial fixed period that can vary from 1
to 10 years. The most common margin on these products is 2.75%
over the indexed instrument. |
| Interest
Only - |
These
incredibly popular programs allow a borrower to make payments
on only the interest portion of the mortgage payment (And any
escrows that may be applied), and principal payments are optional.
This allows a borrower to qualify for much more of a house,
for the same payment, as well as lower their payment dramatically
from a Principal and Interest payment. |
| One
Time Close- |
A
One-Time-Close Loan is a relatively new product in the mortgage
industry. This loan is designed for homeowners who want to buy
property and build their dream home. In theory, this loan eliminates
the need for having an interim construction loan and then going
through the process of obtaining a regular mortgage loan when
the property is completed. Clients electing to use this product
can either lock in their eventual mortgage loan rate at the
beginning of the process or wait until the construction process
is completed.
The One-Time-Close
saves the borrower closing costs expenses. Since there are
both closing costs on interim and mortgage loans, by combining
the loans only one set of costs are incurred.
Only a
few investors offer One-Time-Close loans and the product has
been met with only limited enthusiasm. Our experience has
shown this product to be appropriate for a very narrow group
of borrowers. In addition most builders provide their own
interim financing.
|
| Jumbo- |
Jumbo
loans are that group of loans that exceed the conforming limit
of $300,700. These loans are generally made by the same investors
as conforming loans but the timely payment of principle and
interest is not guaranteed by FreddieMac or FannieMae. The interest
rates on these loans is normally .25% to .50% higher than conforming
loans.
|
| Interim
Financing - |
Interim
financing allows borrowers to build their own house, by first
borrowing the construction money from a bank, and then paying
off that loan through a refinance to a permanent loan. This
is a very popular option for those borrowers who would like
to build their own house, but the builder is unable or unwilling
to secure financing on their own. |
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