CONVENTIONAL - Thirty, Twenty , Fifteen or Ten Year Fixed Rate Mortgages
The traditional fixed-rate mortgages have a constant interest rate and monthly payments that never change. Thirty years may be a good choice if you plan to stay in your home for seven years or longer. Other terms are an option for planning your retirement or just findng a lower interest rate.
Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
These loans have a low down payment requirement of just 3.50% and allow for lower credit score approval. They have less waiting times for past bankrupties,foreclosures and short sales than a conventional loan. There is an upfront fee of 1.75% of the loan amount which can be added to the loan. The MI (mortgage Insurance) premium rate has been lowered greatly from previous years rates. But, the new requirement is that it stays on for the life of the loan now instead of dropping off at 78% loan to value. This will make you want to refinance once you reach that loan balance level depending on your appraisal value to remove that premium from your total loan payment.
VA Qualifed applicantsor spouses can finance or refinance up to 100% of the purchase price or value of their home and take advantage of low rates and closing costs.To find out how much you are eligible for see your Certificate of Eligibility / Discharge Papers (DD214/Disability) or go to www.benefits.va.gov/homeloans/
USDA/ RURAL DEVELOPMENT - No Down Payment! Owner Occupied 1 Unit
These loans are for members who meet the USDA property and income eligibility requirements. The property must be located in a rural area as defined by USDA. You can find out if you and your property are eligible by visiting http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.