Highlands Residential Mortgage, Ltd
NMLS # 134871
Equal Housing Lender Products
FIXED RATE LOAN:
- Fixed rates and monthly P&I payments
- Great for long-term homeowners
- Easy to understand and predict
What is a Fixed Rate Mortgage? A fixed rate mortgage is a mortgage loan that has a set interest rate for the entire life of the loan. It does not fluctuate with market changes and can only be altered through refinance. ADJUSTABLE-RATE LOAN:
- Lower initial rates
- Lower monthly payments in the early years
- Great for borrowers who are confident in predicting the length of their residency
What is an Adjustable-Rate Loan? An adjustable-rate mortgage (ARM) is a mortgage loan that may vary in monthly payment and interest rate depending on a change in an index. Typically, the initial rate is lower compared to a fixed rate mortgage, so for many borrowers, it could make homeownership more affordable. The risk of fluctuating monthly payments may be reduced with annual interest and lifetime interest cap ceilings. FHA LOAN:
- Low down payment
- Competitive interest rates
- Higher debt-to-income ratios allowed
- Lower credit scores allowed
What is an FHA Loan? FHA loans are government-insured loans backed by the Federal Housing Authority. They are designed for low- to moderate-income earners and typically come with the lowest down payments. For 2021, the FHA floor is set at $356,362 for single-family home loans. While this amount varies by county, this minimum lending amount covers 80% of all U.S. VA LOAN:
- No down payment required as long as the sales price does not exceed the appraised value
- No private mortgage insurance required
- VA rules limit the amount a borrower can be charged for closing costs
- A borrower does not have to be a first-time homebuyer
- No prepayment penalties
- Benefit is reusable
- Low interest rates
What is a VA Loan? A VA loan is a mortgage loan that is backed by the U.S. It is available to Veterans, Service Members on active duty, National Guard, Reserve members, and a Spouse of a deceased service member/Veteran. JUMBO LOAN:
- Available in fixed and adjustable-rate options
- Larger loan limits available
What is a Jumbo Loan? A jumbo loan mortgage is any home loan that is more than the 2022 conforming limit of $647,200 according to Fannie Mae guidelines on conventional mortgages. Since most banks do not have jumbo loan mortgage products available, we’ve made them one of our specialties. Our jumbo mortgages are also available as a portfolio product for expanded guidelines outside of conforming limits. We have several jumbo loan mortgage programs that can put you in control of your mortgage investment. RURAL HOUSING LOAN (USDA):
- No down payment
- No prepayment penalties
- No limit on cash contributions
- 100 percent financing
What is a USDA Loan? A rural housing loan, also known as a USDA loan, is backed by the U.S. Department of Agriculture, and is designed to encourage homeownership in America’s more rural and remote locations. They are ideal for low- and middle-income earners who may have difficulty obtaining other forms of financing. DOWN PAYMENT ASSISTANCE PROGRAMS:
- Fixed interest rate
- Offer down payment OR closing costs assistance
- Ranges from 3-5 percent of the loan amount
- Form of a second lien or grant
There are typically two types of down payment assistance programs: those that offer aid in the form of grants and those that use second liens. Considered gifts, grants do not have to be repaid by the buyer at any point. Second liens must be paid back in full when the home is sold or refinanced. Interest rates on second liens are fixed for 30 years. In order to be eligible for down payment assistance, you will have to meet certain requirements regarding income, family size, and location. What is a Mortgage Credit Certificate? The program may be right for you if you:
- Meet certain income and home purchase requirements
- Have not owned a home as a primary residence in the past three years
- Meet the qualifying requirements of the mortgage loan
- Plan to use the home as your principal/primary residence
A Mortgage Credit Certificate, or MCC, gives eligible homebuyers a tax credit for a portion of their annual mortgage interest. This is capped at $2,000 per year and is available for every year you occupy the home as your principal residence. An MCC could save you thousands of dollars over the life of your loan. The MCC is a nonrefundable tax credit, so you must have a tax liability in order to take advantage of it.
