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.

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.

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. 100% Gift funds are allowed on primary and secondary residences.

• 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

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

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  varies.

Do you live in a high-cost area where the average home price is a lot higher than $647,200? 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.

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

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.

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.

Unlike conventional mortgage loans, an FHA loan is a type of mortgage insurance provided by the Federal Housing Administration (FHA), which offers to protect a mortgage lender if a borrower defaults on payments. 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

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.

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.

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

Homeowners with at least 3% home equity built through a conventional loan or 0% 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).

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.

• 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

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 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.

• 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.

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.

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.

• Improved Cash Flows

• Low monthly payment

• No negative amortization

• Great if you plan on selling in 2-3 years

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.