How much home can you afford? Use our finance center to learn about your loan options below. There are several loan programs available, and depending on your credit history, there is bound to be one that is perfect for you. Here are a few examples of the most popular programs offered today:
The fixed-rate mortgage is the most popular mortgage program in use today. Fixed-rate loans offer the borrow a fixed interest rate for the life of the loan, typically 15 to 30 years. Borrowers have peace of mind knowing that their monthly payment will not change over time. Conventional fixed-rate mortgages have underwriting requirements established by Freddie Mac and Fannie Mae, and require certain down-payment and debt-to-equity ratios to qualify. Fixed-rate loans are especially attractive to buyers who plan to stay in their home for more than a few years.
ADJUSTABLE RATE LOANS
With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, and payments go up or down accordingly. Rates are tied to an index that reflects the cost of money at any given point in time. Generally speaking, lenders charge a lower initial interest rate for the ARM than for the fixed rate mortgage. If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today knowing your income will rise in the future, then this loan may be right for you. Adjustable rate loans are attractive for buyers who expect to be in the home for a short period of time.
FHA AND VA LOANS
The Federal Housing Administration (FHA), offers loans for low-to-moderate-income home buyers. FHA loans have lower down payments, and have relatively easier requirements than conventional fixed-rate mortgages. FHA mortgages have no income restrictions and even those with lower credit scores may be considered. Past bankruptcy does not necessarily disqualify borrowers from using this program!
In addition, the Department of Veterans Affairs (VA) offers a zero-down mortgage program. To take advantage of this program, borrowers need to be among those listed as veterans and service personnel in the U.S. military. One of the biggest benefits of this program is that it eliminates the need for private mortgage insurance!
LOCAL HOMEBUYING PROGRAM
There are often many state and local programs available. These programs offer down-payment assistance and programs for local home ownership. Learn more about these local programs, recommended lenders, and other finance options by contacting me today!
MARYLAND MORTGAGE PROGRAM
The Maryland Mortgage Program (MMP) provides buyers that qualify with down payment and closing cost assistance. This program is for residential home buyers that meet income requirements and plan to live in their home as their primary residence. MMP loans are similar to, and competitive with, home loan products available elsewhere, but a major advantage is the availability of Down Payment Assistance and Partner Match Programs (up to $8,500 from DHCD and possibly more from partner organizations), which provide significant help to borrowers in meeting upfront costs associated with purchasing a home. These assistance programs are generally in the form of deferred, no-interest loans (although some Partner Match programs offer homebuyer grants). This means that you can use the funds now to get into a home, but repayment on those assistance loans will not be required until after the primary loan is paid off (or when you sell the property), with 0% interest due on the assistance loans.