HOME LOAN PROGRAMS

There’s a lot of stake with any kind of real estate transaction. That’s true whether you’re an Investor purchasing income properties or a 1st-time home buyer looking for a place to raise your family. For many, buying a home may be one of your biggest assets, so it’s crucial to be as informed as possible about the different home loan programs.

Although the 30-year fixed mortgage tends to be the most popular option for many home buyers, it’s not the only type of home loan. There are FHA mortgages, VA mortgages and several other mortgage options. In some cases, even a 15-year mortgage makes the most financial sense. What about an adjustable-rate mortgage . . . is that something you should consider? Wading through all of the options can be very confusing, so it’s smart to become as familiar as you can about the different home loan programs before you start looking for a home in earnest.

Here’s a brief overview of some of the home loan programs that may be available to you.

Enjoy peace of mind with a traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that will 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.
Buy or Refinance a home with a federally insured FHA Home Loan. These loans offer low down payment options, easy to qualify credit, low closing costs, no cash reserves, cash out refinance up to 85% without higher rate and less stringent qualifications.
The Fifteen-Year Fixed Rate Mortgage 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.
Active duty military personnel and veterans can qualify for special mortgage rates and housing programs that are federally insured by the United States Department of Veterans Affairs. VA Loan offer No Down payment for qualified veterans. No monthly mortgage insurance
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.
Purchase or refinance your luxury home and take advantage of today’s low rates.
This loan has a rate that is recalculated once a year.
USDA Rural Development¹s Single Family Housing Guaranteed Loan Program provides zero down payment home financing for borrowers whose income is no more than 115% of the median income of their area and whose chosen home is in designated qualifying areas. The home does not need to be what many would consider a truly rural area, so be sure to ask your AFN loan officer if you may benefit from a USDA loan.
203(k) / FHA Single-close provides loan proceeds to fund home repairs and improvements without obtaining a second lien, considering the future value of the home after the rehab is completed.
HARP (Home Affordable Refinance Program)
The government’s Home Affordable Refinance Program (HARP) has been expanded to help more homeowners qualify for refinancing their mortgage. Even those with little or no equity available may take advantage of low interest rates, and other refinancing benefits.
Even if you were turned down for a HARP loan before, call your AFN loan officer now to check if you qualify under the updated requirements that allow refinancing even if you are “underwater” or owe more on your mortgage than your home¹s current value.
Seniors aged 62 and over are able convert the equity in their homes to monthly income or a line of credit.

We hope you find our website a useful resource for the financial side of Buying real estate, but before you start looking for homes in the Inland Empire area, you should start the process of lining up the right financing. This allows you to start shopping for a home with the knowledge that you’ll be able to purchase what you find. The financial aspects of purchasing a home can be very complicated, but our team will walk you through each step and make sure that you understand everything that is happening. By being an informed buyer, you will be able to make the best financial decisions for you and your family.

Please give us a call or text so we can answer your home financing questions. Or you can fill out the Contact Form for a more immediate response.