Available Loan Programs

Available Loan Programs

The biggest question most people ask when they begin to shop for a home, is what kind of loan should I apply for? Well in today's market, there are plenty of options!

What kind of loan should I apply for?
There are several loan programs available for home buyers of all types – from the rookie first timer to the veteran retiree. Here are some of the highlights of loan programs available today – of course, you always want to consult a professional loan officer to find out which loan best fits your personal needs before making any final decisions.

FHA and VA Loans:
The Federal Housing Administration (FHA) offers loans for low-to-moderate-income home buyers with as little as 3.5% down payment. In addition to the lower down payment option, FHA loans have relatively easier requirements than conventional fixed-rate mortgages. FHA mortgages have no income restrictions and even those with lower credit scores may be considered. Past bankruptcy does not necessarily disqualify borrowers from using this program! In addition, the Department of Veterans Affairs (VA) offers a zero-down mortgage program. To take advantage of this program, borrowers need to be among those listed as veterans and service personnel in the U.S. military. One of the biggest benefits of this program is that it eliminates the need for private mortgage insurance!

Conventional Loans:
Normal conventional loans may require a down payment of 5% to 20% from a buyer. At one point in time, a fixed-rate conventional loan was the most popular mortgage program used. However, today, consumers are exploring all their options before deciding on a loan to fit their needs. Fixed-rate loans offer a borrower a fixed interest rate for the life of the loan, typically 15 to 30 years. Borrowers have peace of mind knowing that their monthly payment will not change over time. Conventional fixed-rate mortgages have underwriting requirements established by Freddie Mac and Fannie Mae, and require certain down-payment and debt-to-equity ratios to qualify. Fixed-rate loans are especially attractive to buyers who plan to stay in their home for more than a few years.

Homepath Mortgage:
HomePath Mortgage is a type of financing which is only offered on Fannie Mae owned homes. The loan programs allow a borrower to purchase a Fannie Mae home with a low down payment, flexible mortgage terms, no lender required appraisal and no mortgage insurance. In addition, sellers may contribute more to the borrower’s closing costs than what is allowable by the FHA/VA guidelines.

3% down payment can be funded by the borrower’s own savings, a gift, a grant or a loan from a nonprofit organization, state or local government or employer.

  • Flexible mortgage terms include fixed-rate, adjustable rate or interest-only
  • No appraisal required
  • No mortgage insurance
  • Available for primary residences, second homes and investors
  • HomePath Renovation loans are available on properties that require light to moderate repairs, up to 35% of the as completed value

Adjustable Rate Loans:
With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, and payments go up or down accordingly. Rates are tied to an index that reflects the cost of money at any given point in time. Generally speaking, lenders charge a lower initial interest rate for the ARM than for the fixed rate mortgage. If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today knowing your income will rise in the future, then this loan may be right for you. Adjustable rate loans are attractive for buyers who expect to be in the home for a short period of time.

Local Home Buying Programs:

Often, there are state and local programs available, such as grant, bond money or NSP (Neighborhood Stabilization Programs) which offer little to very low down payment options for home buyers. HUD also offers the Good Neighbor Next Door Sales Program, which allows Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians the option to contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program.

Contact Information

Photo of Nate Martinez Real Estate
Nate Martinez
RE/MAX Professionals
20241 North 67th Avenue, Suite A1
Glendale AZ 85308
Fax: 602-532-7352

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