Loan Types

FHA loans provide many homeowners the opportunity to buy a home or refinance an existing mortgage with less equity in the home or with a lower down payment than is allowed under traditional mortgages. These government-backed, low-down-payment loans are the most popular type of mortgage among Northeast Ohio homebuyers today. The down payment requirement for FHA loans can be as low as 3.5%. Monthly and upfront private mortgage insurance (or PMI) is required. This amount is added to the monthly mortgage payment. In most cases, PMI is tax-deductible.

"Fannie Mae and Freddie Mac" Serviced Loans, which usually require a minimum 5% down payment from the buyer, or have it in the form of equity. Higher credit scores and lower debt-to-income ratios are usually required. These loans also allow for lower mortgage insurance premiums along with, in some cases, obtaining the total amount of the mortgage insurance premiums out of your monthly payment. They are used for new home purchases, plus offer very little or no equity required on refinance loans. The existing loan must be a conventional loan to use the "NO Equity" under the HARP loan.

VA loans are available to honorably discharged veterans of the U.S. Armed Forces. In some instances, veterans can obtain a VA loan to purchase or refinance a home with a ZERO down payment and no PMI. Eligible VA loan candidates include veteran, their spouses, active-duty personnel, and reservists/National Guard among others.

If you meet specific income and area qualifications, you may qualify for a Rural Development loan to purchase or refinance a home. These types of loans may offer the added benefits of ZERO down payment and no PMI. To see if your home meets RD guidelines clink on the link below and enter in your full address: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.doc

Also known as non-conforming loans, this loan type is for mortgage amounts in excess of the conforming loan limit of $417,000 set by Fannie Mae and Freddie Mac. Jumbo loans typically carry higher interest rates, and are appropriate for homebuyers who need financing to purchase a more expensive property, and investment-minded buyers who can afford a large purchase but want to leverage their assets more effectively.

This loan type provides financing to purchase a new home before your current home is sold. Bridge loans give homebuyers more buying power since existing mortgage payments aren't considered for qualification.

These loan types combine a first mortgage with a home equity loan, which supplements down payment funds to bring the loan-to-value ratio down to 80% and thus bypass private mortgage insurance (PMI) requirements. They are appropriate for homebuyers without enough cash for a 20% down payment and those who don't want to liquidate higher-yielding investments for a down payment. They also allow monies that would have gone to PMI to be applied toward tax-deductible interest payments instead.

Successful day-to-day operations of a business require an uninterrupted supply of capital. The Mortgage Guys can structure a customized commercial loan that fits into your company's financial future to provide funding to keep your business running smoothly and profitably.