Atlantic Premier Lending is passionate about bringing home ownership to our customers.
A Conventional Mortgage is the most prevalent mortgage loan.
Up to $453,100 are available for loan amounts with 10, 15, 20, 25, and 30 year terms available. Down payments can be as low as 3%, although if your down payment for a purchase, or home equity loan in the case of a refinance, is less than 20%, you may be required to pay private mortgage insurance (PMI). Rates can be fixed or Adjustable Rate Mortgages.
Conventional loan refers to any housing loan that’s not insured or guaranteed by the Federal Government. Conventional loans offer competitive interest rates, and documentation and good credit are required to qualify.
Federal Housing Administration Loans (FHA) were created to assist borrowers who may need a low down payment and flexible mortgage guidelines.
- Great for First Time Home Buyers!
- 3.5% down payment required– Can be a gift!
- Seller can contribute up to 6% of the borrower’s closing costs
- Flexible mortgage guidelines
An FHA loan is a mortgage that’s insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults. FHA-insured loans require very little cash to close, and provide more flexibility in calculating household income and payment ratios.
Must be a Veteran, Active Duty Military, or member of the Reserves
An excellent loan exclusively available to those that are currently serving or who have previously served in the U.S. military. Surviving spouse may be eligible, as determined by VA.
No monthly mortgage insurance. Up to 100% financing available and Flexible mortgage guidelines. Reserved for active duty military, eligible veterans and reserves or their surviving spouses, VA home mortgage loans are backed by the Veterans Administration.
Loans over $453,100
A jumbo loan, also known as a jumbo mortgage, is a form of home financing for whose amount exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
- Minimum 720 credit score
- Minimum 10% down payment required
Jumbo and Super Jumbo loan programs are also considered conventional loans, but offer financing for loan amounts that are greater than the standard limits.
United States Department of Agriculture (USDA) or Rural Development loan programs offer borrowers with low or moderate income more affordable housing funding options.
With little or no down payment or out of pocket costs, USDA financing is designed to improve the economy and equality of life in rural America. To be eligible, the property must be located within a USDA designated area. Qualified borrowers can receive up to 100% financing and sellers can provide up to 6% of the borrowers closing costs.
Renting Vs Owning
There are wonderful benefits and a few things to consider when renting a home. As a renter, you do not earn equity in the home. In addition, there are no tax incentives associated with renting. You may also run into the risk of the annual rent potentially increasing.
But having the flexibility to move at your leisure, having the ability to build up savings, only being responsible for paying the required monthly payments, and dealing with limited kinds of maintenance to the property are very beneficial to a renter and can far outweigh the considerations.
Renting is a great alternative for those whose lifestyles do not allow them to buy a home or whose incomes do not allow them to afford a mortgage loan.
Just as with renting, there are also benefits and considerations when owning a home. As an owner, you may have the ability to write off your mortgage interest and taxes paid on the home, the ability to earn equity and create a retirement security. You gain a sense of stability and protection.
But the financial investment, property taxes, and the maintenance of the property can become costly for those who can’t afford it. There is also a potential lack of the flexibility to move when the market is unfavorable.
Owning is a great option for those whose incomes allow them to afford a mortgage loan, along with the extra long-term expenses.