Loan Programs

There is a myriad number of loan programs available to you as a prospective home owner. Some of which you can qualify for based on military service or other requirements provided below. We suggest you look at all possible financing options before you choose any particular one — that way you can see what’s right for you!

Private Sector®

Conventional Loans – The only security guarantee is the value of the property.

Conforming Loans

Conventional loans that follow the terms and conditions established by the guidelines of Fannie Mae and Freddie Mac.

• Fixed-Rate Mortgage
  The interest rate and the principal payments remain fixed throughout the loan. Keep in mind your monthly escrow account payment could vary from year-to-year as taxes and insurance rates change.
• Variable or Adjustable-Rate Mortgage
  The interest rate on the loan fluctuates over the period of the loan. Periodic adjustments to the interest rate are made based on changes to a defined index. The loan’s interest rate is determined by adding a fixed number of points to the defined index.
• Balloon Loan
  Short term, fixed-rate mortgage that has monthly payments usually based on a 30-year amortization schedule and a lump sum payment due at the end of term, usually 3, 5 or 7 years. The interest rate on balloon loans is usually less than a 15- or 30-year fixed-rate mortgage.
• Piggyback Loan
  A second mortgage that closes with the first. Often the first mortgage is for 80% of the purchase price and the “piggyback” is for 10%. The home buyer covers the remaining 10% with their down payment. (Some lenders will write a second mortgage of 15% or even 20% of the purchase price.)
• Housing Finance Agencies
  These agencies offer special loan programs to low- and moderate-income buyers, buyers interested in rehabilitating a home in a targeted area, and other groups as defined by the agency. Working through a housing finance agency, you can receive a below market interest rate, down payment assistance and other incentives.

Jumbo and Non-Conforming Loans

Loans above the maximum amount established by the guidelines of Fannie Mae and Freddie Mac. Often the interest rate charged for a jumbo or non-conforming loan is higher than that of a conforming loan.

• B/C Loans
  Loans for borrowers who cannot meet the credit guidelines established by Fannie Mae and Freddie Mac. The purpose is to offer temporary financing to someone whose credit history disqualifies them for a conforming loan (including someone who has recently filed for bankruptcy, foreclosure or late payment on their credit report). Typically the interest rates run higher and vary depending upon the individual credit situation.
• Reverse Purchase Mortgage  (HECM)
  The purpose of this mortgage FHA Insured, Reverse Purchase Mortgage is meant to meet the special needs of elderly homeowners by reducing the economic hardship caused by the increasing cost of meeting health, housing and subsistence needs at the time of reduced income.

Government

FHA Loans

The Federal Housing Authority (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), plays a significant role in helping low- to moderate-income families qualify for mortgages. FHA assists first-time buyers and others who would not qualify for a conventional loan, by providing mortgage insurance to private lenders. interest rates for an FHA loan are usually the going market rate, while the down payment requirements for an FHA loan are loir than conventional loans. The required down payment can be as low as 3 percent and the closing costs can be included in the mortgage amount.

VA Loans

VA Loans are guaranteed by the U.S. Department of Veterans Affairs. Service persons and veterans can qualify for a VA Loan, which usually offers a competitive fixed interest rate, no down payment and limited closing costs. While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan.

RHS Loan Programs

The Rural Housing Service (RHS), which is part of the U.S. Department of Agriculture, guarantees loans from private lenders to help low- to moderate income families qualify for mortgages.

Rent To Own

Home Partners Of America’s with Bonomo Realty – Lease With A Right To Purchase Program. We believe even if it’s not the right time to buy, people shouldn’t have to settle. The dream of owning a home can be a reality.
WHO WE ARE AND WHAT WE STAND FOR – Our Mission:  Make homeownership a reality for more people
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