Types of Loans

A loan that conforms to conditions and terms of the government-sponsored enterprises Fannie Mae and Freddie Mac is called a conforming conventional loan, while one that does not is called a non-conforming conventional loan. The down payment of a conventional loan is generally higher than that of a government-insured loan, such as an FHA loan, which is 3.5 percent. Conventional borrowers generally must pay between 5 and 20 percent of the properties purchase price for a down payment.

FHA offers several types of loan programs to individuals. The 203(b) insurance program insures loans for purchase or fund of a principal residence. Approved lenders issue the funds. The 203(k) program insures loans on a purchase of a house that needs repairs. This type of loan includes the cost of the property plus the cost of making the repairs. In addition, FHA offers the Energy Efficient Mortgage Program (EEM). This program insures loans for individuals looking to purchase their primary residence and roll the cost of energy efficient upgrades into the the loan. The FHA loan program offers borrowers many benefits. As of January 1, 2009, FHA loans require a 3.5 percent down payment. You can receive the down payment as a gift to you from family members or obtain it from other sources such as down payment assistance programs. In addition, the credit and income guidelines are more relaxed on an FHA loan. The program also limits the amount of closing costs you are required to pay.

A loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain property financing. The Department of Veterans Affairs does not directly originate VA loans; instead, they establish the rules for those who may qualify, dictate the terms offered and insure VA loans against default. VA loans offer up to 100% financing on the value of a house. To qualify for a VA loan, borrowers must present a certificate of eligibility, which establishes their record of military service, to the lender. VA loans, FHA loans and other loans insured by departments of the United States government are securitized by the Government National Mortgage Association (Ginnie Mae). These securities carry the guarantee against default of the United States government.

Building your dream home can be easy and affordable with the Graystone Construction Loan. This program has a special set of guidelines, including monitoring to ensure timely completion. Once approved, a borrower is put on a bank-draft, or draw, schedule that follows the project’s construction stages. The borrower makes interest only payments during the construction term. One-time and two-time close options are available to best fit your needs. This means that at the end of the construction term, the loan is either modified (one-time close) or refinanced (two-time close) to a traditional mortgage loan.

Construction loans can be challenging and stressful for the builder and borrower. We specialize in this portfolio product and offer a “white glove” experience throughout the financing, building, and closing processes to ensure a smooth transaction.  Financing this product in-house also allows us the flexibility to offer competitive terms- the Graystone Construction Loan allows borrowers to go up to 95% LTV!

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A jumbo loan is a loan that is above the limits set by the government, also referred to as a non-conforming loan. The cost of a jumbo loan is higher than a standard loan, so expect a higher interest rate for a jumbo loan. The place must also be located in a higher-cost area, which is a neighborhood that can support a higher rate. Approval of a jumbo loan will not occur if the cost of the rest of the area is within conforming loan limits. The entire area must support the cost of the loan. A jumbo loan can be used to purchase single-family and multi-unit dwellings up to four units. You can also use a jumbo loan on a second house. A jumbo loan may have a fixed or an adjustable interest rate. A jumbo loan is for the purchase of an existing property or the construction of a custom place, including investment property. Check with us for other eligibility requirements and down payment information.

The United States Department of Agriculture (USDA) Guaranteed Rural Housing (GRH) offers a 100% financing property loan program – meaning zero down payment required! There are certain specific requirements for his loan program, both for the borrower and for the location of the property. The borrower must meet certain income restrictions, and they must plan to occupy the property. The borrower’s income cannot be above 115% of the U.S. median income for the area, adjusted by family size. Best of all, you do not need to be a first-time property owner.

As the cost of living continues to rise, seniors are increasingly utilizing the reverse loans to help them achieve financial independence in their golden years. A Reverse loan is a federally insured financial tool that offers property owners aged 62 and older the ability to convert some of their equity into a supplemental cash flow. It can help provide financial security while guaranteeing that you continue to own your house – without giving up title, or making monthly payments. Best of all, there are minimal income and credit requirements, and you can use the money without any limitations.

Recent changes by Congress to the FHA-insured Reverse loan program have now made it possible for seniors to buy a place with this loan – to be closer to family, to switch to a single story or smaller house, or to move into an active adult community.

Graystone Mortgage, LLC is a preferred lender for The Utah Housing Corporation and the Washington State Housing Finance Commission. These organizations offer state-specific housing programs to qualified first time property owners and home buyers who have previously owned a home. These programs include down payment and closing cost assistance, helping those who are buying a house without the funds required by other programs.

Working with Scott Seare was an enjoyable, no hassle experience!

John

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