Purchase Loans

FHA

FHA loans have several advantages over conventional loans including low down payments, low closing costs and more relaxed credit-qualifying guidelines. Some areas where they are more relaxed in their credit guidelines are past bankruptcies and/or foreclosures, employment requirements, use of alternative credit and debt-to-income ratios. They also ensure that interest rates remain competitive with interest rates of conventional loans.

Benefits of a FHA mortgage:

• A 3.5% down payment, opposed to 5% down payment on conventional loans
• Entire down payment may be gifted funds
• Low monthly mortgage insurance
• Low closing costs, which are regulated by HUD
• Credit Scores of 620 or higher
• Qualify two years from the date of discharge on a bankruptcy
• Qualify three years from the final date of a foreclosure

Loan to value ratios are often overlooked by homebuyers. For most, the interest rate and loan term are the more important items. However, the loan to value ratio is a key factor in your application. Below is the maximum loan to value ratio that AnnieMac Home Mortgage can lend on for FHA purchases:

• Single-family primary residence – 96.5%

If your purchase is for a primary residence that is a two-family, three-family or a four-family residence, please call AnnieMac Home Mortgage to receive the maximum loan to value ratios.

FHA loan limits vary based on a variety of housing types and the state and county in which the property is located. Please call an AnnieMac Home Mortgage Licensed Mortgage Originator to discuss loan limits in your area.

FHA allows you to assume an existing FHA-insured loan. Or, if you are selling your home FHA allows a buyer to assume your FHA-insured loan. Assuming a loan can be very beneficial since the process is streamlined and less expensive compared to a new loan. Also, assuming a loan can result in a lower interest rate.

FHA Jumbo

The average interest rates on jumbo mortgages are typically higher than those for conforming mortgages as they generally are considered higher risk due to the larger amount of money that is being borrowed.

AnnieMac Home Mortgage offers FHA jumbo fixed rate loans and adjustable rate loans:

• With a fixed rate loan, your rate is fixed and your payment remains the same throughout the length of your loan (i.e. 30-years, 25-years, 20-years or 15-years). A fixed rate loan is an excellent choice if you plan to live in the home for many more years.
• With an adjustable rate loan, your rate will adjust and your payments will fluctuate based on changes in the market. However, the rate and payment remains unchanged during the introductory period which would be 3 or 5 years. The initial rate for an adjustable rate mortgage is usually lower than that of a fixed rate loan. After the introductory period expires, the interest rate is subject to adjust at predetermined periods, usually every six months. The rate adjustments are based on market interest rates and the adjustment caps limit how much your interest can adjust in a specified period of time. An adjustable rate mortgage is a great choice if you don’t plan to own the home for a long period of time.

Loan to value ratios are often overlooked by homebuyers. For most, the interest rate and loan term are the more important items. However, the loan to value ratio is a key factor in your application. Below is the maximum loan to value ratio that AnnieMac Home Mortgage can lend on for FHA jumbo purchases:

• Single-family primary residence – 96.5%

If your purchase is for a primary residence that is a two-family, three-family or a four-family residence, please call AnnieMac Home Mortgage to receive the maximum loan to value ratios.

FHA loan limits vary based on a variety of housing types and the state and county in which the property is located. Please call an AnnieMac Home Mortgage Licensed Mortgage Originator to discuss loan limits in your area.

FHA allows you to assume an existing FHA-insured loan. Or, if you are selling your home FHA allows a buyer to assume your FHA-insured loan. Assuming a loan can be very beneficial since the process is streamlined and less expensive compared to a new loan. Also, assuming a loan can result in a lower interest rate.

203K

The 203K loan program enables you to finance both the purchase and rehabilitation of a one-to four-family property through a single mortgage. The loan can be used to repair or upgrade an existing dwelling that you purchase in one of two ways:

• Purchase a home and the land on which the home is located and rehabilitate it
• Purchase a home on another site, move it onto a new foundation and rehabilitate it (loan proceeds for the moving of the house cannot be made available until it is attached to the new foundation.

The cost of rehabilitation must be at least $5,000 and your loan amount will be based on the projected value of the property once the work has been completed and taking into account the cost of the repairs being done.

AnnieMac Home Mortgage offers 203K fixed rate loans and adjustable rate loans:

• With a fixed rate loan, your rate is fixed and your payment remains the same throughout the length of your loan (i.e. 30-years, 25-years, 20-years and 15-years). A fixed rate loan is an excellent choice if you plan to live in the home for many more years.
• With an adjustable rate loan, your rate will adjust and your payments will fluctuate based on changes in the market. However, the rate and payment remains unchanged during the introductory period which would be 3 or 5 years. The initial rate for an adjustable rate mortgage is usually lower than that of a fixed rate loan. After the introductory period expires, the interest rate is subject to adjust at predetermined periods, usually every six months. The rate adjustments are based on market interest rates and the adjustment caps limit how much your interest can adjust in a specified period of time. An adjustable rate mortgage is a great choice if you don’t plan to own the home for a long period of time.

The following types of properties are eligible:

• Owner-occupied properties at least one year old
• Attached and detached single family residences
• One- to four-family property
• Townhouses (PUD’s)
• FHA-approved condos

FHA loan limits vary based on a variety of housing types and the state and county in which the property is located. Please call an AnnieMac Home Mortgage Licensed Mortgage Originator to discuss loan limits in your area.

FHA allows you to assume an existing FHA-insured loan. Or, if you are selling your home FHA allows a buyer to assume your FHA-insured loan. Assuming a loan can be very beneficial since the process is streamlined and less expensive compared to a new loan. Also, assuming a loan can result in a lower interest rate.