The following is brief synopsis of some of the loan programs offered by American Pacific Mortgage with a description of the key elements of each. An experienced Mortgage Advisor can evaluate your individual circumstances, and offer suggestions as to the appropriate program for your situation.
Contact us today for more information about specific loan options.
A Conventional loan is typically guaranteed by a government sponsored enterprise (Fannie Mae or Freddie Mac) or by a private lender. Conventional mortgages offer down payments as low as 3% for qualified first-time borrowers and as low as 5% for other qualified borrowers. Conventional loans offer both Fixed and Adjustable Rate options.
FHA loans are private loans insured by the federal government. These loans allow for a minimal 3.5% down payment to qualify. FHA loans require mortgage insurance which slightly increases their monthly payments. They typically allow for lower credit scores and higher debt to income ratios. FHA loans can be used to purchase, refinance, or rehabilitate an owner occupied property.
A Jumbo loan, or non-conforming loan, usually refers to any mortgage with a loan amount that exceeds the annually assessed Conventional Loan Limit. Jumbo loans typically have fixed and adjustable rate options similar to Conventional loans. Because they are not guaranteed by a government agency, Jumbo loan qualifications and underwriting requirements are determined by the individual private investors and may be more stringent.
Like an FHA Loan, VA loans are private loans insured by the Federal Government. VA loans are only available to qualified active duty or military veterans and their families, and can only be used to purchase or refinance a primary residence. In many cases, VA loans allow qualified customers to borrow 100% of the value of the home.
A USDA loan is a mortgage for a primary residence that is insured by the US Department of Agriculture. USDA loans are available to qualified individuals to finance a property in a designated rural area outside of a major metropolitan city. USDA loans allow qualified borrowers to purchase with a 0% down payment.
Reverse mortgages are available only to homeowners 62 and older. Instead of making a mortgage payment, the lender pays you a one-time lump sum, a monthly installment, or provides access to a line of credit for periodic withdrawals. Reverse mortgages are a financing vehicle which allow senior citizens to access the equity in their homes, while guaranteeing they may continue to live there for as long as they choose.
A Home Equity Line of Credit (HELOC) is a variable rate mortgage which allows homeowners to make periodic withdrawals of cash from the equity of their home. A HELOC can be used in conjunction with a traditional mortgage. Generally, borrowers can draw funds during the first 10 years of the agreement and make only interest payments during that time. At the end of the withdrawal period the balance is amortized and repaid over the remaining 20 years.
Non-QM loans are loans that do not meet the federally mandated guidelines for Conventional and Government backed mortgages. These mortgage are issued by private investors who set their own rules for qualification, specifically related to employment, income, credit history, and asset position of the borrowers. Non QM Mortgages address a variety of non traditional lending situations, and generally carry a higher risk tolerance and higher rates.
Absolute Mortgage is proud to partner with The Washington State Housing Finance Commission to provide a number of down payment assistance options to homebuyers. In addition, we offer a variety of local, regional, or out of state programs and grants which offer affordable options.