Tim Bradford 216-324-8113

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Loan Programs - Info

 

FHA Mortgage. Thought of as the first time home loan program but actually available to anyone. The interest rates are competitive with Conventional, but qualifying for the loan isn’t as tough either because FHA is more more forgiving of lower credit scores and prior blemishes.  The down payment is only 3.5% and for down payments of less than 10% FHA Financing should be considered.  The Mortgage insurance is very completive with Conventional Mortgage Insurance.  

Conventional Mortgage. You’ll typically need at least 3% for a down payment and better than Average credit to justify Conventional Financing.  Conventional Financing is an option to consider with greater than 5% - 10% Down payments. 

 

Mortgage Insurance (PMI/MIP/Funding Fee/Guarantee Fee)  Alright, this isn’t a mortgage type, but you need to know about it! If you put less than 20% down on a home with a Conventional Loan, mortgage insurance protects your lender in case you are unable to or quit making payments. The cost varies by type of loan so ask about it with every loan you discuss.  Mortgage insurance can now be a tax write-off depending on your income level, due to a recent change in the tax laws. (Consult your Tax Advisior)  Also, once you believe you have at least 20% equity, you should contact your lender to find out about getting rid of any Monthly Mortgage Insurance, also known as PMI or MIP.   This page (Future Link) will give you some information about what Upfront and/or Monthly the cost of Mortgage Insurance would be on Different Loan Types.

Comparing the different Mortgage Insurance costs on different loans can be confusing.  On this website you will find my "Compare Two Loan Options" Calculator that may assist you. 

 

 Veteran Home Loans. : Veterans or Active Duty personnel are eligible for VA Financing with Zero Down.  Reservists and National Guard Members Who Have Served on Active Duty are available for VA Loans.   Surviving Veteran Spouses and Reservists/National Guard Members Who Have Never Served on Active Duty may be eligible for Zero Down VA Financing. 

 USDA Rural Housing Loan. In order to qualify for a USDA Rural Home Loan the property needs to be located in Rural America. Generally, these are communities of less than 10,000 people, but the USDA does make exceptions.  Certain areas between 10,000 and 25,000 in population are considered rural based on their distance from urban.   The Program also has income limitations as well as property limitations.  

203k Rehab Loan.  Check out www.OHIO203K.com for More Information about this method of financing a home than needs work.  It allows you to purchase a home as well as getting funds to make any necessary or desired repairs to the property, all using FHA down payment, Credit requirements and Mortgage Insurance premiums. 

Fixed Rate or Adjustable Rate Mortgages(ARM) . Most loan programs offer Fixed or Adjustable Rate loans.  Fixed Rate loans are the most popular because they provide the security of a Fixed Rate and Payment.  You should discuss Adjustable Rate Loans with a trusted financial advisor, because they do offer lower payments, however as the rate adjusts your payment can increase and your plans need to allow for any PAYMENT SHOCK when your rate changes.   For the right borrowers and in the right situations, Adjustable Rate Loans may be a loan to consider.  If you are using an ARM merely to buy a more expensive house, an ARM may not be for you.   Consult a trusted financial advisor that will explain the benefits and risks associated with Adjustable Rate Mortgages.

Timothy Bradford, Loan Officer
American Midwest Mortgage Corporation
6363 York Road, Suite 300, Parma Heights, OH  44130
Direct:  (216) 324-8113
Cell:  (216) 324-8113
Office:  (440) 884-5000 Ext. 269
Fax:  (440) 884-5034
tbradford@ammcorp.net
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