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Programs and Services

Programs and Services

Mortgage Choice Inc offers a wide range of products and programs that we feel provides the essential elements to good mortgage financing alternatives. We offer nearly all types of programs and features that can be found in the mortgage services arena. Some of these programs are described below and they are… FHA, VA, USDA, CONFORMING, and NON CONFORMING. We partner with only the highest quality investors. We have found that having investors that do not embrace our business model of educated decision making and focusing on the specific needs of our clients is not in anyone’s best interest.

Some of the loan programs that we specialize in are…

FHA

The Federal Housing Administration offers a series of loan programs geared toward flexibility for the borrower. These programs called FHA loans allow you to purchase or refinance primary residences. The programs presently require a minimum contribution of 3.5% of the sales price. They do not require a 3.5% downpayment. That sounds weird, but there is a difference. So a consumer can obtain a loan for as little as 3.5% contribution and that money can come from many places. The two most common, however, are from your own savings or from the gift of a relative. There are a very few instances where a gift from some one other than a blood relative might be allowed.

These loans, offered as a fixed rate or as an Adjustable Rate Mortgage (A.R.M.) generally allow some credit blemishes and will often allow for a co-signer when the primary applicant can not meet the FHA requirements by themselves.

FHA requires an up front fee (called an UFMIP) but they allow this fee to be added to the loan balance. FHA also requires monthly mortgage insurance. But this monthly mortgage insurance (MI) is often much lower than the MI of a traditional conventional loan. Ask us more about this unique opportunity.

FHA 203K Streamline

This is a variation of the above FHA loan. This loan, however, allows the borrower the flexibility of adding renovation or repair costs into the loan. Maximum amount is $35,000 and there are restrictions, but if you need to do some renovations to your current home…. Or the fixer upper you have found needs some work, a 203k streamline might be the answer you were searching for.

VA

The Department of Veterans Affairs (VA) began offering a program of loan guarantee many many years ago. This product is ONLY available to a Veteran or spouse of deceased veteran that has VA loan “eligibility” and offers loans up to 100% financing. Regular service, war time service, Reservists, and retired veterans should ask us about the options available. This program does require an up front fee much like FHA. It is called the funding fee. This fee varies widely dependent upon the type of service and whether you have obtained a VA guaranteed loan before. Veterans earning any disability income are likely exempt from this fee, making a VA loan even more attractive. Ask us if VA funding may be right for you.

US Dept of Agriculture

USDA offers two types of loan “guarantee” programs. The first, called DIRECT lending is for extreme low income families and it has payment subsidy and recapture clauses. This loan is not very common.

The second loan program called GRH loans is the primary loan program sponsored by the Dept of Agriculture. Bt don’t let the name fool you. This program is not simply for totally Rural areas. It is primarily offered in communities of less than 20,000 residents but there are many places in NC that this program is a great alternative.

This is a fixed rate program only and it has a Funding fee just like the other two Government sponsored programs of FHA and VA. This program, unlike FHA and VA DOES have income limits. This is the only program where the property AND the borrower must be acceptable. This loan, like VA, does NOT have monthly mortgage insurance and also like VA it will allow the borrower to obtain 100% financing.

This program also has a feature similar to the FHA 203k streamline where some monies may be added for repairs/renovations that do not impact the safety or livability of a home.

Ask us if you qualify? It’s a simple process and you may be closer than you think.

Conforming Loans

This is the most common, most used, most popular type loan program. This simply implies two things about a loan: First, that the maximum loan size is $417,000. And Second, that the loan has been originated in a manner that makes it eligible for sale to the two Government Service Entities (GSE’s) commonly called Freddie Mac and Fannie Mae. The minimum downpayment is 3%. However the more common loan programs will require a minimum of 5% downpayment. This product is available for both Primary residences and Residential Investment property as well as owner occupied second homes (Mainly vacation homes).

Non Conforming Loans

Any loan that is not a Government loan ( FHA, VA, USDA) or a conforming Loan is a Non conforming loan. Non Conforming loans were typically broken into two Subsets: Jumbo and Subprime. Truly a non conforming loan is simply a loan that is NOT sold and serviced by Fannie Mae or Freddie Mac. Many private entities have obtained and serviced Non conforming loans. But during the troubling banking times and contraction of the large “Wallsteet” firms, the appetite for both Subprime loans and Jumbo Loans have severely contracted. In many states, like North Carolina, subprime loans have been legislated into extinction. There are some small avenues for individuals with moderately or severely blemished credit, but those programs are mostly gone. A Jumbo loan is simply a loan amount greater than the conforming limit for the area ($417,000 here in North Carolina). A Subprime loan is more blanketly defined as a loan where the borrower has credit below a certain level.

Mortgage Choice Inc does offer Jumbo lending and we have many viable options for you. North Carolina laws do not allow us to effective offer subprime lending alternatives beyond the aforementioned Government sponsored alternatives of FHA, USDA, and VA, and none of those programs are truly subprime options.

 

What people are saying

David Tyndall at Mortgage Choice, Inc., in Cary, North Carolina, was an essential part of our relocation team. His knowledge about the current mortgage market helped us to make smart choices in preparation of applying for our mortgage. We were so blessed to have someone to offer us competitive rates and to ask the many questions that you have when making such a large purchase and life change. If you are even considering purchasing a home, we highly recommend calling David Tyndall at Mortgage Choice, so you too can be better prepared for the financial end of purchasing a home.


Mike and Becky