Loan Options
Does it feel like choosing the right loan means hours and hours of research while still ending up with your head spinning? Don’t worry. It’s not just you. Well, that is no longer the case when you are partnered with one of our expert loan officers. Our team will break down all the loans available to you without leaving you with a headache and doubts.
Home Purchases
Let’s buy your dream home!
Home Refinancing
Out with the old, in with the new!
Fixed Rate
Your interest rate will stay the exact same over the life of your loan. You can decide between 10 to 30 years in amortization whether you are purchasing or refinancing a home.
ADVANTAGES
- Keep your fixed rate without any surprise adjustments
- Available to all clients
- Offers predictability and peace-of-mind knowing your payments will not fluctuate drastically
Conventional
Conventional loans are great for those with a minimum FICO credit score of 620 and can put a minimum of 3% of a down payment for first-time home buyers or 5% down for returning borrowers. This loan program is not backed or insured by a government agency.
ADVANTAGES
- No mortgage insurance if your down payment is 20% or more
- Appraisal requirements are less strict
- Investment properties are available to be financed
- No upfront Mortgage Insurance
FHA Mortgage
The Federal Housing Administration (FHA) protects the lenders from any defaults on payments. Not only does an FHA mortgage make buying a home an option for a wider span of people, it also has more lenient guidelines.
ADVANTAGES
- Minimum 580 FICO credit score
- Minimum down payment of 3.5%
- Closing costs of an FHA refinance can be rolled into the loan
- Past bankruptcy does not disqualify you from being eligible
USDA Mortgage
Backed by the United States Department of Agriculture, these loans make buying a home in approved and qualified rural and/or suburban areas a much more available option to many people. Your property must be within the approved areas and your household income must be within the set USDA limit.
ADVANTAGES
- Minimum 640 FICO credit score
- 100% financing availability
- You may be able to roll your closing costs into your loan
Reverse Mortgage
Available to home-owners 62 years of age and older, a reverse mortgage can allow a person to use the equity from their home to help answer their retirement needs. The owner would collect either a lump sum, monthly disbursements or take a line of credit from the loan.
ADVANTAGES
- No monthly payments required
- Funds can be used for any home-buyer needs such as renovations, retirement income, etc
- Can be used to possibly stop a foreclosure on an existing mortgage
Veteran’s Loan
Guaranteed by the Veteran’s Administration, eligible veterans and their spouses have a more affordable option to borrow than other programs allow. Loan Velocity will go directly to the VA website and we will obtain your Certificate of Eligibility. You must have a minimum FICO credit score of 620.
ADVANTAGES
- No mortgage insurance required
- Down payments are not necessarily needed
- VA benefits may be used more than once
Jumbo Loan
A jumbo mortgage is a loan of $510,400 or more for a single family residence. Similar to conventional mortgages, jumbo loans require a solid credit score of about 680 or higher.
ADVANTAGES
- Low down payment requirement of 5 to 10%
- Lower interest rates than standard conventional mortgages
Rate/Term Refinance
This is the simplest form of a refinance. Based on a borrower’s current credit score, debt-to-income ratio, monthly payment, and appraised value of the home, it might prove to be beneficial to swap out a client’s current mortgage for an entirely new one with better terms and financing.
ADVANTAGES
- With the right interest rate and financing, a borrower could save hundreds of dollars a month on their mortgage payment
- Possibility to reduce the term length of a mortgage (i.e. 30 year mortgage to a 15 year mortgage)
- Mortgage insurance could be eliminated or greatly reduced
Cash Out Refinance
This is a great option for anyone needing to consolidate and eliminate large amounts of debt such as credit cards, auto loans, etc. However, not everyone gets a cash-out refinance because of debt. Some use it to renovate and improve their home.
ADVANTAGES
- All cash pocketed from this type of refinance is tax-free
- Mortgage interest rates tend to be lower than those rates on credit cards and other debts. This means that paying off your debt with a cash-out refinance could be a smarter way to pay off debt swiftly and efficiently.