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Choosing the Best Financing Program

 

Programs come in many forms and from many sources and have many variables that can affect the interest rate and monthly payments on your loan.  Financing structure, i.e. a 30 year fixed rate program, can affect your interest rate and monthly payments, as well as the source of funding for your financing.  The source of funding can also affect the amount of your down payment and closing costs.


If you have at least 3% of the purchase price to use as a down payment, you may consider the most common type of loan product, a conventional "conforming" program. These loans are products secured by government sponsored entities (GSE) like Fannie Mae and Freddie Mac.  For customers seeking financing amounts higher than the limits set by the GSE’s, we offer jumbo programs, which are funded by private investors and offer higher financing amounts.


Conforming products are funded by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These companies do not lend money directly to you, but work with lenders across the country to offer financing products to meet your unique situation. As a secondary market for financing products, they purchase mortgages from lenders and package them into securities that can be sold directly to investors.

If you are looking for a large financing amount to purchase or refinance your home, you could consider a jumbo product, which has a higher loan amount limit than the limits set by Fannie Mae and Freddie Mac. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

The federal government and other state, local and private entities have developed programs to help you purchase a home with a low down payment.


If you have adverse qualifications, and are not within the guidelines of a conforming program, you could consider an Alt-A (Alternative) or a Subprime program. Like others, subprime programs come in many forms based on the terms, financing amount, and the loan to value ratio you are seeking. In addition, we will analyze your credit and obtain your credit grade, which will help them determine the best program for your situation. Even with less than perfect credit, we offer many solutions and guarantee that you will be treated fairly according to our company principles

 
FHA
FNMA Conforming
Freddie Mac Conforming
Alt A
Investment Properties
SBA
Commercial

FHA

Federal Housing Administration

Term: 30 years   Maximum Amount: $625,000

FNMA Conforming
Term: 30 years   Maximum Amount: $625,000

Freddie Mac Conforming
Term: 30 years   Maximum Amount: $625,000

Alt A
Term: 30 years   Maximum Amount: $5,000,000

Investment Properties
Term: 30 years   Maximum Amount: $625,000

SBA

Small Business Administration

Maximum Amount: $5,000,000

Commercial
Term: 5 years   Maximum Amount: $750,000,000



Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $424,100 for the contiguous states, District of Columbia, and Puerto Rico or below $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $40,850. Jumbo Loans (whose maximum loan amount exceed $424,100 for the contiguous states, District of Columbia, and Puerto Rico or exceed $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,001 with closing costs of $40,850. Your actual APR may be different depending upon these factors.