Did You Know? We Have Options
The Atlanta Home Loan Team at Cornerstone Mortgage Group offers a variety of different mortgage options. Recently, we’ve received feedback that some of our clients, as well as business partners, were unaware of all the services we offer. With that in mind, here’s a brief run-down of some of the mortgage programs we offer for both purchases and refinances.
Conventional / Conforming Mortgages:
These mortgages conform to the guidelines of Fannie Mae and / or Freddie Mac. They are the most commonly used mortgages and they offer the best loan terms assuming good credit. The minimum down payment for a conventional mortgage is 3% but there are some limitations. The maximum conventional loan amount is $424,100.
A Jumbo mortgage is required when the loan amount is going to be higher than the conforming loan limits set by Fannie Mae and Freddie Mac ($424,100+). Jumbo loans generally carry slightly higher interest rates versus conventional loans but the terms are still very good. The minimum down payment for a jumbo loan is 10% but there are ways to get additional financing if needed (combo loans).
An FHA mortgage is great for borrowers with less than perfect credit scores and / or higher debt to income ratios. These loans offer low interest rates and only require a 3.5% down payment. The maximum loan amount for an FHA mortgage in Atlanta is $358,800. A drawback to these loans is that they have higher closing costs.
A VA (Veterans Administration) mortgage is the preferred loan program for anyone who has served in the U.S. armed forces. These mortgages provide 100% financing and there is no PMI (mortgage insurance) required. These loans offer very low interest rates and the fees are very reasonable. The maximum loan amount for a VA mortgage is $424,100 in order to utilize 100% financing. In my opinion, these are the best mortgages available in the marketplace.
A USDA mortgage is great for borrowers looking to finance a property in an area designated as “rural” by the US department of Agriculture (USDA). These loans offer 100% financing and they have very low interest rates. There are some income limitations with this program.
A Renovation mortgage is great for borrowers interested in financing a home that needs some work. These mortgages provide financing for the acquisition (or refinance) of a property along with the renovation costs all in one loan. The drawback to these loans is there are additional costs and they require the most documentation.
2nd Mortgages / Combo Mortgages:
2nd Mortgages are great for buyers who don’t have a 20% down payment but would like to avoid paying PMI (mortgage insurance). This is accomplished by structuring a “Combo Loan” where there is a first mortgage at 80% loan to value and a second mortgage that provides the additional financing. These loans can also be used to help jumbo buyers obtain 95% financing at higher price points.
A Non-Traditional mortgage is great for borrowers who can’t qualify for a traditional mortgage. Normally this is because of a recent adverse credit event (foreclosure, bankruptcy, etc.) or an inability to document income via tax returns (self-employed). These loans require a 10% down payment and carry higher interest rates but are great if no other options exist.
With thanks and warm regards,