This is the most commonly used mortgage option. A fixed-rate mortgage means your mortgage interest rate – and your total monthly payment of principal and interest – will stay the same for the entire term of the loan. This offers you consistency that can help make it easier for you to set a budget.
Fixed rate loans offer:
Private mortgage insurance required on loans with a down payment of less than 20%. PMI protects the lender (not the borrower) if a borrower defaults. Borrowers must meet credit and underwriting criteria. Maximum loan amount limits may apply.
All loans subject to credit approval, standard mortgage qualifications and underwriting requirements. Additional fees, conditions, and restrictions may apply.
Some eligible homebuyers may qualify for an FHA (Federal Housing Administration) or a, VA (Department of Veterans Affairs), or a RD (USDA Rural Development) loan. These loans tend to allow a lower down payment and other unique features when compared to conventional loans, but have additional requirements and fees.
Government-insured loans that could be a good fit for homebuyers with limited income and funds for a down payment. These loans require payment of an upfront mortgage insurance premium (UFMIP) as well as an annual mortgage insurance premium. (MIP)
Are insured by the Department of Veterans Affairs. To qualify for a VA loan, you must be a current or former member of the U.S. armed forces or the current or surviving spouse of one. VA loans require a funding fee that can be financed into the loan. If you meet these requirements, a VA loan could help you get a mortgage.
Are insured and originated in accordance with the criteria established by and eligible to be guaranteed by the RD under a RD Loan Guaranty Agreement. RD mortgage loans do not require and down payment. To qualify for a RD loan, the property must be a designated rural area as defined by the US Department of Agriculture Rural Development and you income may not exceed 115% of US Median income adjusted for your family size. A RD loan requires payment of a guarantee fee as well as an annual fee thereafter. If you do not have a down payment saved, a RD loan could help you get a mortgage.
Ask for details about eligibility, documentation and other requirements. Maximum income and loan amount limits may apply. Homebuyer education may be required. Borrowers must meet credit and underwriting criteria.
FHA loans: FHA mortgage insurance protects the lender (not the borrower) if a borrower defaults on the FHA loan. Each FHA borrower pays a mortgage insurance premium. The premiums are collected and used by the FHA to reimburse the lender (not the borrower) should the borrower default and the lender must foreclose upon the loan/sustain a loss. This insurance enables a lender to provide loan options and benefits often not available through conventional financing. Monthly Mortgage Insurance Premiums (MIP) and upfront mortgage insurance premiums (UFMIP) apply. Maximum loan amounts vary by county.
VA Loans: The VA guaranty helps to protect the lender (not the borrower) against loss if the borrower fails to repay the VA loan. Borrowers pay an upfront funding fee towards the VA guaranty. This guaranty enables a lender to provide loan options and benefits to military veterans and other qualified participants that may otherwise be unavailable through conventional financing.? VA funding fee applies except as may be exempted by VA guidelines. The fee is higher with a zero down payment, and maximum loan limits vary by county. If a down payment of 5% or more is made, the fee is reduced. The VA funding fee is non-refundable.
RD loans: require a one-time guarantee fee of 1%. The RD guaranty helps to protect the lender (not the borrower) against loss if the borrower fails to repay the RD loan. Borrowers pay an upfront funding fee and an annual guarantee fee thereafter. The guarantee fee is non-refundable.
Finally, VisionBank participates in various affordable loan programs offered through housing agencies and Government Sponsored Entities(GSEs) These programs provide flexibility and assistance with down payment funds and closing costs for first time home buyers, moderate to low income borrowers and moderate to borrowers purchasing homes in low to moderate income census tracks. Ask your lender for more details.
Maximum income and loan amount limits apply. Homebuyer education may be required. Other restrictions apply.
Down payment and/or closing cost assistance programs may not be available in your area. Down payment and/or closing cost assistance amount may be due upon sale, refinance, transfer, repayment of the loan, or if the senior mortgage is assumed during the term of the loan. Borrowers should become fully informed prior to closing. Not all applicants will qualify. Borrowers must meet credit and underwriting criteria. Sales price restrictions and income requirements may apply. Homebuyer education may be required. Owner-occupied properties only. Maximum loan amounts may apply.
Home equity loans typically have a fixed interest rate, meaning the payment is the same each month; making it easier to factor into your budget. But remember, a home equity loan payment is in addition to your usual mortgage payment.
Since it's a lump sum one-time equity draw, a home equity loan is a good source of money for major projects and one-time expenses.
HELOCs and home equity loans are similar in that you're borrowing against the equity in your home. A home equity loan gives you a sum of money all at once, while a HELOC is similar to a credit card: You have a certain amount of money to borrow and pay back, but you can take what you need as you pay it. You'll pay interest only on the amounts you draw.
HELOCs often begin with a lower interest rate than home equity loans but the rate is adjustable, or variable, which means it rises or falls according to the movements of a benchmark. This means your monthly payment can rise or fall, too.
Apply now and start your journey to homeownership!