Mortgage 101:  Understanding Different Types of Mortgage Loans

When applying for a home loan for the first time, many terms may be thrown out at you and you might have no idea what they mean!  Purchasing a home is one of the biggest investments in your life- you want to make sure you do it wisely. Northeast Financial is your Connecticut resource for home purchase loans and mortgage refinancing. We offer USDA, Veteran Loans, Conventional Mortgages, No PMI Loans, CHFA, FHA, Reverse Mortgages, Investment Property Loans, Rehab Loans, and Commercial Real Estate Loans.  Now what does that all mean?

Here is some helpful information on some of the loans we offer:

 

Conventional:

    • 620 Minimum credit score
    • Max loan amount – $417,000
    • Minimum 5% down payment (with higher credit scores we have 1% and 3% down options as well)
    • 680 FICO = 5% down, NO PMI

 

FHA: 

  • As little as 3.5% down
  • Minimum credit score 580
  • Both for purchases and no appraisal streamline refinance

 

203(k):

  • Renovation loan
  • Finance purchase price and repair costs
  • Minimum credit score: 600
  • Down-payment as low as 3.5%
  • Owner occupied properties
  • Must use general contractor (so self-repair)

 

VA:

 

 USDA Loans:

  • NO MONEY DOWN
  • Minimum credit score is 620
  • DTI 29% / 41%
  • Property must be in eligible area
  • Specific income requirements
  • To find out if a property qualifies, click here.

 

Jumbo Loans:

    • Purchase or Refinance
    • Primary Residence or Investment Property
    • 417K to 3MM (million)
    • 660 or higher credit score
    • Must put down at least 10% for a purchase or 10% equity to refinance
    • Up to 90% LTV with No PMI options
    • 30 year or 15 year terms (as well as 5, 7, or 10 year ARMS)
    • Higher debt to income ratios (maximum of 43%-50%) considered.

CHFA Loans: 

  • For First time buyers
  • Eligible for 100% FINANCING
  • Minimum credit score is 660
  • Competitively low interest rates
  • Discounts offered for teachers, police, and the military

 

 

At Northeast Financial (Connecticut’s Premiere Mortgage Company), we pride ourselves on helping you learn more about the process and are willing to work with you every step of the way.  For any questions on any of these loan types please call me today.

Thank you,

IMG_0088

Michael Meyer
Senior Vice President of Northeast Financial
NMLS#117875
Mike@northeast-mortgage.com
860-876-0572
210 S. Main St Middletown, CT 06457

Company NMLS#117273 

http://www.zillow.com/profile/MichaelMeyer8/

https://www.linkedin.com/company/north-east-financial

https://www.facebook.com/pages/Northeast-Financial-Mortgage/143761005796033

Residential Clients: Click Here For Application

 

 

1% down disclosure

NMLS# 117273, Northeast Financial, 860-788-7237

Borrower contributes 1% down, lender contributes 2% down of the loan up to $5,000.00 for the down payment, and the borrower is responsible for any difference to get the required 3% down.  The principal and interest payment of a 200K 30 year Fixed Rate Loan at 4.375% and 97% loan to value is 998.57 with 0 points due at closing.  The annual percentage rate is 4.633%.  The principal and interest payment does not include property taxes and home insurance premiums, which can result in a higher actual monthly payment.  Rates current as of 06/20/2017

 

 

3% down disclosure

NMLS# 117273, Northeast Financial, 860-788-7237

The principal and interest payment on a 200K 30 year Fixed Rate Loan at 4.375% and 97% loan to value is 998.57 with 0 points due at closing.  The annual percentage rate is 4.433%.  The principal and interest does not include taxes and home insurance premiums, which can result in a higher actual monthly payment.  Rate current as of 06/20/2017

 

 

FHA Disclosure

NMLS# 117273, Northeast Financial, 860-788-7237

The principal and interest payment on a 203,500 30 year FHA fixed rate loan at 3.25% on 96.5% loan to value is 1,025.99 with 0 points due at closing.  The APR is 4.491%.  Payments include a one time upfront mortgage insurance premium (MIP) at 1.75% of the base loan amount and monthly MIP is calculated at .85% of the base loan amount.  The .85% monthly MIP is required for a specific period of time regardless of your down payment or equity in your home.  The principal, mortgage insurance, and interest payment does not include property taxes or home owner’s insurance premiums, which will result in a higher actual monthly payment.  Rates current as of 6/26/17