At Platinum Mortgage Solutions, we have a lot of experience in different loans and which would suit our clients the best. We have described in short the different kinds of loans that we offer. We will be happy to explain more in detail.
Conventional Loans (Fixed / Adjustable Rate)
A conventional mortgage is a loan that is not guaranteed or insured by any government agency. It may be fixed or adjustable in its terms and rate. Higher down payments do not require mortgage insurance, yet lower down payment options are available For certain mortgage programs. Credit score has a big impact on interest rates and qualification. If paying monthly mortgage insurance, you can stop paying mortgage insurance once you have 20% equity in your home. Gift funds may be acceptable with conventional financing.
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). FHA offers low down payments and interest rates may be less impacted by the borrower’s credit score. Gift funds may be acceptable with FHA financing. The debt to income requirements are less stringent as compared to conventional, which often means more purchasing power. It is typically fixed in its terms and rate and terms over the life of the loan.
A VA loan is a mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. VA offers 100% financing with no mortgage insurance. A VA Certificate of Eligibility is required to apply for a VA loan. Gift funds may be acceptable. The debt to income requirements are less stringent as compared to conventional, which often means more purchasing power. It is typically fixed in its terms and rate and terms over the life of the loan.
A USDA home loan from the USDA loan program, also known as the United States Department of Agriculture Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture. 100% financing is available with no mortgage insurance. There are strict income and property requirements for eligibility. Gift funds may be acceptable with USDA financing. The debt to income requirements are more like conventional loans. It is typically fixed in its terms and rate and terms over the life of the loan.
Rehab / Renovation Loans
Both Conventional and FHA Rehab loans are available. These loans allow you to finance repairs and renovations made to the property, which can be completed after closing. There are limitations to what repairs can be made that vary based on the product type. There is more upfront paperwork required on these loans and rates are usually higher than regular conventional or FHA loans. If interested in these programs, please set up a consultation to ensure that you fully understand the product and requirements.
Reverse mortgages are available to clients age 62 or higher. It allows a homeowner to convert the equity in their home into cash or the ability to draw against a set line of credit. The borrower must remain living in the home and remain current on taxes, home owner’s insurance and HOA fees, if applicable. Reverse Mortgages are governed by several laws to protect older consumers including the requirement for independent loan counseling.