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Our Loan Programs and How They Work
While there may be a wide variety of loans and programs to choose from, at Inman Mortgage Group, we realize each client’s needs are unique! By taking into consideration our clients specific needs, income, job stability, and credit history, we shop for the best rates and terms.
With over 50 years of combined experience in both real estate sales and finance, our goal at Inman Mortgage Group is to assist you in purchasing the most home for your money, with the least amount out of pocket, while taking advantage of the lowest monthly payments with the greatest return on your investment!
Below are just a few examples of the loan programs we offer. For additional information, contact us today and receive a FREE, No-Obligation Consultation as we’re affiliated with over 40 major lending institutions and offer the most competitive interest rates, programs and terms!
FHA Loans (Purchase, Refinancing & Streamlines)
Most FHA-insured loans are fixed-rate mortgages. In a fixed-rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.
With FHA's adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low but may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (1 Yr CMT), the most widely used index, to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.
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Conventional Loans (Conforming & Non-Conforming)
Conforming Conventional Loans are designed for what the Real Estate industry considers an “A” quality borrower. These loans are used to purchase and/or refinance a single family residence, income property and second homes. Typically these loans conform to the somewhat stringent underwriting guidelines of Fannie Mae and Freddie Mac. Although 100% Financing is available, the typical borrower must, in most cases, have at least 5% down payment, be able to verify a two year history of stable, ongoing income and above average credit. In comparison to FHA and VA Loans, qualifying for a Conventional loan can be very difficult for the first-time homebuyer.
The Conforming Loan Limits for California – 2009 are as follows:
One Unit - $417,000
Two Units - $533,850
Three Units - $645,300
Four Units - $801,950
Non-Conforming loans are loans that do not conform to the guidelines set forth by Fannie Mae or Freddie Mac. Non-Conforming loans consist of a variety of loans; i.e. Jumbo Loans (exceeding the conforming loan limits), inadequate credit history or derogatory credit, not enough income, home equity or home improvement loans, credit lines, second mortgages, etc.
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Introductory Rate ARM’s (Fixed 3, 5, 7 or 10 years, rolls to A.R.M.)
Most adjustable rate loans (ARM’s) have a low introductory rate or start rate which start at about 3.0% below the current market rate of a fixed loan. Depending on our clients specific needs, length and terms requested, as well as other qualifying factors, these loans are most commonly used by short term investors (3-7 year terms) and/or for the first-time homebuyer who would like to qualify for a lot more house based on short term fixed rates and lower monthly payment!
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NO PMI Loans
What is PMI? In the event buyers do not have 20% of their own funds to put down when purchasing a property, the investor usually require them to carry Private Mortgage Insurance (PMI), a policy that is required to cover the lender in the event a buyer defaults on their loan.
Depending on the structure of the loan, PMI can be avoided, however, in the event it is not, the investor will require escrow to collect the initial premium from the buyer at close of escrow in addition to the lender setting up an impound account and the buyer paying a monthly fee.
While there are several ways to avoid paying PMI, the following are just a couple of the most commonly used programs:
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No Money Down Purchase Loans
For the individual with limited cash, these programs allow the borrower to put little to no money down on purchasing their new home. While this program is often used for First-Time Homebuyers, it can also be used for individuals who do not currently own a home. Utilizing our Government Assisted Down Payment Assistance Programs, we have assisted many to become homeowners that typically could not qualify due to lack of down payment, expanded debt to income ratios, less than perfect credit or no credit.
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V.A. Purchase & Refinance Loan – (Veterans Administration)
The V.A. Purchase Loan Program is one of the best loan programs available in today’s market place. If you are currently active in the United States Military, or have ever served in the U.S. Armed Forces, you may be eligible to purchase real estate property with absolutely no money down and the Seller and/or Builder is allowed to pay all of your closing costs. Generally speaking, qualifying for a VA loan tends to be a little easier than qualifying for a Conventional loan.
The VA Rate Reduction Refinance Loan Program (IRRRL) is available to Veterans who now occupy their properties or can provide proof of prior residency. This unique program allows Veterans to lower their current interest rate and monthly payments, convert their existing adjustable to a fixed rate and/or reduce the term of their loan with No Appraisal, No Credit Report, No Money Out of Pocket, and No Upfront Fees.
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CALPERS Loans
Members of the Public Employees Retirement System (PERS) are eligible for financing home purchases and refinances under the PERS Member Home Loan Program. Public employees who are participating in PERS second tier retirement programs and are not required to contribute to the system are considered active members. An annuitant is a person who receives a monthly retirement benefit from the retirement systems described above.
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Less Than Perfect Credit Loans
Commonly known as “B or C Credit” or “Subprime” loans. These programs offer more options for borrowers who have less than perfect credit, high debt-to-income ratios, or inability to verify income or down payment. While these programs typically carry higher interest rates, they offer the borrower a lending source to fit their immediate needs. Borrowers in these programs often refinance into conforming programs after a 2-3 year seasoning period and good credit has been established. Candidates for Subprime loans include individuals with credit related issues, especially over the last two years. Credit related issues may include:
- Late payments on installment, revolving, or mortgage debt
- Collection accounts, bad-debt write-offs, judgments, tax liens, or repossessions
- Individuals whose debt-to-income ratios exceed conforming loan guidelines
- Borrowers who have income or down payment which cannot be verified
- Past or current bankruptcies
- Past foreclosures
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Refinancing
Refinancing an existing mortgage is a popular option for homeowners who want to convert their adjustable rate mortgage to a fixed rate, lower their existing rate and terms, consolidate their home mortgages and/or bills into one low monthly payment with one low interest rate, etc.
Whether you are looking to better your current mortgage, consolidate your monthly debt, make home improvements, add a pool, or just simply want to take cash out for personal reasons while taking advantage of additional *tax benefits, we have the perfect loan for you. (*Consult your tax advisor)
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Debt Consolidation Loans
Utilizing your home as collateral or taking advantage of a new second trust deed to consolidate your monthly bills, make home improvements, add a pool, buy a new car, take a vacation, etc. may be a wise decision.
If you’re looking to improve your monthly cash flow by lowering your total monthly outgo, take advantage of additional *tax benefits, want to fix up instead of move up, this may be the perfect loan for you, as equity is not required. (*Consult your tax advisor)
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Income Property Loans
These loans are for non-owner occupied properties purchased as investments and to generate rental income. Rates and terms can vary greatly with this program. We have a full range of programs available for single family, condominiums and unimproved (fixers) investment property loans.
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Second Home Loans
A second residence is partly defined as a property that is occupied on a part-time basis, such as a home in the mountains or at the seashore. The property cannot be considered to be an income producing property. Simply put, a non-income producing residence used as a temporary/vacation home when you are away from your primary residence. Programs and terms may vary in comparison to owner occupied financing.
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A Fair Housing and Equal Opportunity Lender.
