Loan Types
Red Rose Mortgage offers many loan programs and our loan officers will
work to find a loan that fits your personal needs.
We offer 100% financing, weak credit, self-employed, fixed income
and interest only, just to name a few. Give us a call to discuss
the loan programs available to you or go to the Quick Application
and fill it out now to get started. Once we receive your application
a knowledgeable and experienced loan officer will contact you.
DEFINITIONS
- Conventional – Any mortgage that is not a VA or FHA loan. Conventional
mortgage may be conforming or non-conforming.
- Conforming – Any loan that conforms to the underwriting guidelines
of Fannie Mae or Freddie Mac is called a “conforming loan”. Guidelines
such as the maximum loan amount, down payment percentage, borrower
and co-borrower credit, borrower and co-borrower income requirements,
and appropriate property types.
- Non-conforming – Any loan that doesn’t conform to the underwriting
guidelines of Fannie Mae or Freddie Mac is called a “non-conforming
loan”.
- Refinance – A new loan on your current home. Can be used for paying
off debt, pulling equity out of the home for improvements to obtain
a lower rate.
- Jumbo – A mortgage with a loan amount above conventional loan limits.
Jumbo mortgages apply when Fannie Mae and Freddie Mac will not
cover the loan amount. Currently, this limit is $417,000. Other
mortgage companies will finance jumbo loans as a non-conforming
loan. The average interest rates are typically greater than for
conforming mortgages, and vary depending on property types and
mortgage amount.
- VA - A VA mortgage is a loan guarantee program which is a benefit
to veterans for some forms of federal service. Participation in
military service is one of these forms. In general, 24 months
of continuous, active duty service after 1980 will qualify for
a VA loan. Additionally, duty in the Reserves or National Guard
for at least 6 years can be applied toward eligibility for a VA
guaranteed loan
- Construction – Any loan used to purchase a home before construction.
A construction to perm loan is when the builder will carry financing
until completion of the home. At that time you will purchase the
home from the builder.
- Manufactured Housing – A loan on a home that was brought to your land
and assembled on site. Doublewides and mobile homes are not manufactured
homes.
- Investment Property – A loan in which you purchase property for rental
income.
- Fixed Rate – Fixed Rate mortgages have an interest rate that is valid
for the life of the loan. Fixed rate mortgages are available for
10, 15, 20 and 30 year terms.
- Adjustable Rate (ARM) – Adjustable rate mortgages have a fixed interest
rate for the start of the term and a floating rate thereafter.
Once the initial period expires (typically 2, 3, 5, 7 and 10 years
depending on the program) the adjustment occurs either once every
6 months or once every year (depending on the program) and fluctuates
following published financial indexes. An ARM normally has caps
(limits) on adjustments. For example 1% per year with a lifetime
cap of 6%. Caps vary from mortgage program to mortgage program.
- Interest Only – An interest-only loan is a loan in which for a set
term the borrower pays only the interest on the capital; the capital
remains owing. At the end of the term the borrower may renew the
interest only mortgage, repay the capital, or (with some lenders)
convert the loan to a principal and interest payment loan at his
option.
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