OrangeBanner2

LOAN OPTIONS

dollar_sign

Fixed-Rate Mortgage Types

If you’ve already provided the necessary paperwork, have been approved for a loan and found the home of your dreams, the next step is arranging a closing date.
As an all-inclusive mortgage banker with our own in-house underwriting and funding teams, we work as a cohesive team to close loans fast. This fast and hassle free service is not only an incentive to you, but also to real estate agents and sellers who need to close quickly.
Once you have finalized the closing, you are ready to move into your new home.

FEATURES

With a conventional loan, your monthly payments and interest rates will never change over the life of the loan, giving you financial stability when faced with fluctuating housing rates. A conventional loan offers:

A feeling of security: Our Fixed Mortgages Loan means you always have the security in knowing your monthly mortgage payments will never increase.

Consistent monthly payments: Knowing exactly how much you are spending each month over the duration of one of our Fixed Rate Mortgages allows you to accurately budget for your monthly expenses.

Protection from inflation: Our Fixed Rate Mortgages gives you the added sense of security that no matter what happens 10, 15, 20, or more years down the road, your interest rate and payment will never increase.

IS A FIXED LOAN THE RIGHT FIT FOR YOU?

Are you looking to stay in your home for multiple years at the same, minimal price? If so, a conventional loan may be the best choice for you. Because a conventional loan has the same monthly payments, it’s one of the more popular mortgage products on the market.
A conventional loan can be a great option for homeowners who plan to lock in a lower interest payment while rates are down and are open to refinancing in the future.

DISCLOSURE INFORMATION

The maximum loan amount for a conventional loan varies by county so it’s important to work with a mortgage professional to help determine if this loan is your best option. Gift funds are allowed on primary and secondary residences, but homebuyers must have 5% of their own funds unless the gift amount covers at least a 20% down payment.
Private mortgage insurance is required on all loans with less than 20% down.

ADJUSTABLE-RATE MORTGAGE TYPES

These types of loans have interest rates that are fixed for a specified term (10, 7, 5, or 3 years) and then adjust periodically based on changes in a pre-selected index.
The most common indices for these mortgages are Treasury, LIBOR and COFI indexes. Adjustable rate mortgages have lower initial interest rates during the fixed initial term than a long term fixed rate loan which translates to a lower monthly payment.
These types of loans are especially attractive to first time home buyers who are usually in their first home less than five years or to any buyers who do not plan on living in the home for the full term of a long fixed rate product (i.e. 30 years).

FEATURES

  • Lower monthly payments initially than fixed mortgages
  • The ability to cover rising mortgage payments with increased income
  • Loan payments recalculated if principal grows beyond a set limit
  • Flexibility to sell your home or refinance if interest rates rise

IS AN ADJUSTABLE LOAN THE RIGHT FIT FOR YOU?

How can you tell if an Adjustable Rate Loan is right for you? An Adjustable Rate Mortgage is typically beneficial for:
  • Borrowers who need to keep their interest rate and payment low
  • Borrowers who often relocate every few years because of their career
  • Real estate investors who need investment property loans to purchase properties, renovate them, and resell the property after a few years
  • Growing families looking who may need a loan to buy larger home in the future

DISCLOSURE INFORMATION

The interest rate fluctuates. It can move up or down monthly, semi-annually, annually or remain fixed for a period of time before it adjusts. ​The maximum loan amount for an adjustable rate mortgage often varies. Private mortgage insurance is required on all loans with less than 20% down.

SUPER CONFORMING & HIGH BALANCE LOAN

To understand High Balance/ Super Conforming Loan, first we need to know what “conforming loan” is. A conforming loan is any loan that conforms to Fannie Mae’s and Freddy Mack loan guidelines: the borrowing amount in particular. If Fannie Mae and & Freddy Mac loan limit is $417,000 across USA, then High Balance/ Super Conforming loan has a loan limit higher than $417,000.
Obviously, real estate is all about locations, and certainly not all locations are the same: there are higher cost areas, and living cost for those areas are is higher. Thus, the conforming loan limit for high living cost areas is $625,000 rather than $417,000. This is significant for several reasons, because borrowers in high living cost areas have several options of whether or not to stick with conventional-conforming loan or Jumbo loan, which I’ll get to it in a minute.
Conforming loan limit is “proportional” to the living cost.

IS A SUPER CONFORMING & HIGH BALANCE LOAN RIGHT FOR YOU?

Do you live in a high cost area where the average home price is a lot higher than $417,000? Conforming mortgages are those which Fannie Mae and Freddie Mac are authorized to purchase by federal regulation. They carry lower interest rates than “jumbo” mortgages that exceed the conforming mortgage limits.

FEATURES

Unlike Jumbo mortgage loans, a High Balance/ Super Conforming is a type of mortgage insured & provided by Fannie Mae and Freddie Mac , which brings you easier guidelines, qualifications, and lower rates than Jumbo Loan.
  • Accepted by All FDIC insured banks
  • Closing costs lower than Jumbo loans
  • Easier qualification guidelines

DISCLOSURE INFORMATION

Fannie Mae and Freddie Mac have set rules and loan limits for all counties across California. Please see FHFA LOAN LIMITS and match your property loan limits accordingly.

jumbo loan

Jumbo mortgage is a mortgage loan that may have high credit quality, but is in an amount above conventional conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy mortgages from lenders.

IS A JUMBO LOAN RIGHT FOR YOU?

You can use a Jumbo Mortgage for a home purchase loan or to refinance a home mortgage you already own. Our unrestricted access to a variety of programs means we can find the right program for you.

FEATURES

​ Jumbo Loans offer you greater flexibility in buying a home. Our mortgage experts can help you with a Fixed Rate Mortgage or an Adjustable Rate Mortgage. With a Jumbo Mortgage from First American Wholesale Lending Funding, you won’t be restricted by loan limits, so we can help you find the best loan for your financial goals. In addition to competitive rates, we offer:
  • Down payments of just 20% can help you get into the home of your dreams
  • Interest only mortgage. This type of loan allows you to defer paying the principal on your mortgage for the chosen term of the loan. Instead, you make only the interest payment, which allows you to keep monthly payments low at the beginning of the loan.
  • Ratios up to 50 percent: With a Jumbo Loan, you can incur a higher debt to income ratio while still enjoying competitive interest rates and loan terms.
  • Non-occupying co-borrowers allowed. If you worry about qualifying for a loan, we offer home financing options that allow a friend or family member, who will not be occupying the home, to co-sign on the loan. This is a great option for those who cannot provide verifiable income or have less than perfect credit.
  • Flexible terms. First American Wholesale Lending Funding offers several loan terms based on your goals and qualifications.

DISCLOSURE INFORMATION

Jumbo borrowers need at least six months’ worth of reserves in their bank accounts after closing, while conforming loan borrowers may be required to have just one or two months’ worth of mortgage payments set aside. The required reserve amount for jumbo borrowers can sometimes be 20% percent of the loan.

fha loan

An FHA home loan makes qualifying for your new mortgage easier. Refi or buy, it’s our most flexible loan. It is insured by the Federal Housing Association of the U.S. Department of Housing and Urban Development (HUD).
Current FHA mortgage holders may refinance with the FHA Streamline to lower their interest rate.

IS A FHA LOAN THE RIGHT FIT FOR YOU?

​If you are looking to buy a home, but worry that your low credit rating or debt to income ratio may stand in the way, you may be eligible for an FHA loan. Although there are still limits to how much you can borrow, there are no income requirements, and FHA loans require a lower down payment.   Since 1934, FHA loans have made it easier for all types of people, first-time homeowners and senior citizens to own homes and foster the economy. As part of the U.S. Department of Housing and Urban Development, an FHA loan helps improve housing standards, stabilizes the mortgage market and protects private lenders from default losses. ​

FEATURES

Unlike mortgage loans, an FHA loan is a type of mortgage insurance provided by the Federal Housing Administration (FHA), which offers to pay off the loan if the borrower defaults. This makes lenders more likely to disperse larger mortgage loans. An FHA loan offers:
  • Down payments as low as 3.5% of the asking price
  • Closing costs included in the loan
  • The ability to add home repair costs to the loan for remodeling
  • Insured financing for modular and manufactured homes

DISCLOSURE INFORMATION

Annual and up-front mortgage insurance premiums are required for an FHA loan, and maximum loan amounts vary by state and county. The insurance premiums paid by each borrower will be used to reimburse the lender (not the borrower) should the borrower default on the loan and the lender forecloses the home. Homebuyer education courses or minimum credit score requirements may apply. Down payment assistance may or may not be available in your area.

refinance loan

When interest rates are low, it’s a good time to consider refinancing your home mortgage. Securing a lower interest rate and monthly payments could mean significant savings on your mortgage over the lifetime of the loan. Let First American Wholesale Lending Funding’s experienced team help you make the best choice for refinancing your home loan.

IS A REFINANCE LOAN THE RIGHT FIT FOR YOU?

​A change in mortgage rates and how long you plan to stay in your current home are the most important things to consider when deciding to refinance. Refinance loans are often used to transition from an adjustable rate mortgage to a fixed rate mortgage or lock in a lower interest rate for lower monthly payments. Typically, homeowners refinance if interest rates become at least two points lower than their existing rate. Refinance loans include upfront costs similar to those required for original mortgages, so if the home is sold in five years or less, you could lose out on any potential savings. ​

FEATURES

​Refinance loans can reduce your overall financial benefit by restructuring your debt, which lowers your interest payments. Refinance loans offer:
  • Adjusted payments to current market standards
  • The option to extend or keep the same loan term
  • Ability to transfer debt to mortgage loan
  • Lower closing costs and interest expenses

DISCLOSURE INFORMATION

Homeowners with at least 5% home equity built through a conventional loan or at least 2.5% built with an FHA loan are eligible for refinance loans. You must also be up to date with your current mortgage payments to qualify. If you do not have the required home equity, but are current on your mortgage payments for the last six months, you may be eligible to refinance through the federal government’s Home Affordable Refinance Program (HARP).

va loan

We’re honored to offer this top military benefit and help veterans refinance or buy their homes, even with zero down for home purchases. First American Wholesale Lending is dedicated to helping our military veterans find the best home financing options available. Designed to help active duty military and veterans qualify for homeownership, VA Home Loans are guaranteed by the U.S. Department of Veteran Affairs and feature easy home financing options. Because VA loans are government insured, they offer veterans and military personnel lower interest rates and better terms than conventional mortgages.
Current VA mortgage holders may refinance with the VA Interest Rate Reduction Refinance Loan (IRRRL) to lower their interest rate.

IS A VA LOAN THE RIGHT FIT FOR YOU?

​Our servicemen and women make many sacrifices for our country; the joys and FEATURES of homeownership should not be one of them. With a government insured VA mortgage, veterans and military personnel may secure a home purchase loan with no down payment and no monthly mortgage insurance premiums. VA Home Loans are popular as first-time mortgages and for buyers with less-than-perfect credit.

FEATURES

  • No down payment required
  • Negotiable interest rates
  • Adjustable & fixed rate mortgage options
  • No monthly mortgage insurance premiums
  • No prepayment penalty
  • VA assistance to borrowers due to financial difficulty
  • Ability to finance the VA funding fee
  • Reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation

DISCLOSURE INFORMATION

​Funding fees can be financed in a VA loan. Only primary residences qualify for this mortgage program, and homeowners must certify their intent to occupy the primary residence within 60 days. A spouse may satisfy occupancy if the Veteran is on active duty or is unable to occupy the residence due to distance employment. Surviving spouses are eligible for a VA loan, provided that they do not remarry. The VA limits the amount charged for closing costs.
Minimum 10% disability will allow the veteran to waive the funding fee charged by veteran affairs (VA).

cash out & renovation loan

If you’re interested in borrowing against your home’s available equity to pay for other expenses, home repairs, renovation you would take cash out on your home’s equity.

IS A CASH OUT & RENOVATION LOAN THE RIGHT FIT FOR YOU?

​Cash-out refinance: pays off your existing first mortgage. This results in a new mortgage loan which may have different terms than your original loan (meaning you may have a different type of loan, a different interest rate as well as a longer or shorter time period for paying off your loan). It will result in a new payment amortization schedule, which shows the monthly payments you’d need to make in order to pay off the mortgage principal and interest by the end of the loan term.

FEATURES

  • Improved cash flow and reserves. Using a cash-out refinance to pay off high-interest revolving debts can put you in a better cash flow position. Although you will still carry the debt, you will only have to make one payment each month — instead of several — at a much lower interest rate.
  • Better interest rates, improved credit score. Interest rates are typically lower in a cash-out refinance than on a home equity loan and other loans such as home improvement loans or business startup loans.
  • Tax benefits. There are significant tax benefits when you roll your high-interest debt into a mortgage payment: All of the mortgage interest is tax-deductible.

DISCLOSURE INFORMATION

Whether the improvements you envision are large or small, necessary or optional, you can add value to your new property with permanent changes using a renovation loan.

INTEREST ONLY loan

You’re looking to buy a home, but you want to take more control over your loan payments each month. While the security from a 15 Year Fixed Rate Mortgage or a 30 Year Fixed Rate Loan might be appealing to some borrowers, if your job offers bonuses or commissions on a regular basis, an Interest Only Mortgage could be the best fit for your borrowing needs. At First American Wholesale Lending, we’re here to help you find the best type of mortgage for your unique financial situation, and an Interest Only Mortgage could be the loan that meets your needs.

IS AN INTEREST ONLY LOAN THE RIGHT FIT FOR YOU?

​Cash-out refinance: pays off your existing first mortgage. This results in a new mortgage loan which may have different terms than your original loan (meaning you may have a different type of loan, a different interest rate as well as a longer or shorter time period for paying off your loan). It will result in a new payment amortization schedule, which shows the monthly payments you’d need to make in order to pay off the mortgage principal and interest by the end of the loan term.

FEATURES

  • Improved Cash Flows
  • Low monthly payment
  • No negative amortization
  • Great if you plan on selling in 2-3 years

DISCLOSURE INFORMATION

Higher qualification is needed for an interest only loan. First American Wholesale lending has licensed mortgage bankers who can consult you on your loan options and can help you decide whether one of our Interest Only Mortgages will best meet your needs. Contact us today to see what loan is right for you.
Copyright 2015 First American Wholesale Lending | All Rights Reserved
design by vs