Loan Programs

Thirty-Year Fixed Rate Mortgage

The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

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Fifteen-Year Fixed Rate Mortgage

This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate, and you’ll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that great.

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Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)

These increasingly popular ARMS, also called 3/1, 5/1 or 7/1, can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a 5/1 loan has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

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Adjustable Rate Mortgages (ARM)

When it comes to ARMs there’s a basic rule to remember?the longer you ask the lender to charge you a specific rate, the more expensive the loan.

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2/1 Buy Down Mortgage

The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.

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Annual ARM

This loan has a rate that is recalculated once a year.

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Monthly ARM

With this loan, the interest rate is recalculated every month. Compared to other options, the rate is usually lower on this ARM because the lender is only committing to a rate for a month at a time, so his vulnerability is significantly reduced.

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Reverse

The official name is a Home Equity Conversion Mortgage (HECM). It’s the ability to use up to approximately 60% loan-to-value equity in your house (in some cases more than 60%) to receive a payout of those proceeds. These are generally lump sum payments, monthly payments, or a combination of both. You can also defer a pay out and have a line of credit to use when you need it.

You can refinance a HECM, and you can use this type of loan for a purchase.
The advantage is that you do not have a monthly mortgage payment. You are still obligated to pay your property taxes, home owners insurance and your HOA if applicable. The money you receive from this loan may in fact be used to pay those housing obligations.

A customized program should be designed specifically to meet your needs. Inquire for more details.

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Non-Prime, Non-QM

These mortgage loans essentially are loans that aren’t conventional, FHA, or VA loans.

Dodd Frank Wall Street Reform and the Consumer Protection Act were ratified in 2010 to prevent predatory lending. There is specific language and provisions that outline Qualified Mortgages (QM) under this act. The focus is on the Ability to Repay (ATR). There are debt-to-income maximums, FICO minimums, restrictions on interest only loans, and several other guidelines that conventional lenders, Freddie Mac and Fannie Mae subscribe to in their underwriting analysis.
Loans that fall outside these provisions are defined as Non-Qualified Mortgages. These have been described as Non-QM, Subprime, and Non-Prime loans. Many borrowers use these as bridge loans, and refinance into a QM (conventional, FHA or VA) loan after they are able to meet QM requirements, but often the increased cost of these loans are less than the equity gained from a purchase.
In order to provide the broadest spectrum of lending for all of our clients, Sanlor Financial has relationships with several lenders that provide these loans. Inquire for details! Call me at 1 (844) 726-5671.

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VA

A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). The loan may be issued by qualified lenders.

The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry).
Often rates are better than conventional loans and there is no mortgage insurance.

Financing up to 100%!

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FHA or Conventional Loan??

What are the pros and cons of each. An FHA vs Conventional Mortgage Analysis

FHA mortgages require only a 3.5% down payment, all of which can be from a gift. FHA loan products offer lower interest rates than conventional loan products. Finally, FHA approves loans for those with FICO scores of 580 and above.

FHA mortgages require a one-time fee called Up Front Mortgage Insurance Premium (UFMIP) of 1.75%, though all of this can be rolled into the loan. Also, you pay a Mortgage Insurance Premium (MIP) of 0.85% for loans up to $417,000.

Today’s conventional loan products require a 5% down payment for loans financed up to $417,000, and a 10% down payment for loans above $417,000 to $625,500.?Unless you?re able to put at least 20% down on a purchase, you will be required to pay a monthly mortgage insurance of about 0.8%.

Stop to consider how much money has to be paid out of pocket for a down payment vs. how much is paid monthly. Generally, monthly payments on a conventional loan with monthly mortgage insurance will be slightly less than an FHA loan, but they will usually be within $150 to $200 per month for the same amount financed.

Although there is a lot to consider, the bottom line is 1) affordability and 2) your total monthly obligation.

PITI=Principle+Interest+Taxes+Insurance

Debt-to-income ratio: PITI + additional installment payment obligations with 8 payments or more left. Credit cards, student loans and car payments are the big ones.