Loan Options2016-11-15T10:34:14+00:00

LOAN OPTIONS

Also known as FNMA (Fannie Mae) and FHLMC (Freddie Mac). The maximum loan amount for conventional loans is $417,000. Conventional loans can be used to purchase or refinance primary residence, second/vacation homes, and investment properties. These loans require as little as 3% down in certain cases (FNMA Home Ready, FHLMC Home Possible) but generally the required down payment is at least 5% on primary residences, 10% for second/vacation homes, and 15% for investment properties.

The minimum credit score for conventional loans is 620. Private mortgage insurance (PMI) is required for all loans where the down payment (purchase) or equity position (refinance) is less than 20%. In some cases it is advisable to finance the PMI into the loan, also known as Lender Paid Mortgage Insurance (LPMI). Fixed rate and adjustable rate loans are available. We will evaluate and advise you on which scenario works best for your particular situation.

These loans are used for purchases and refinances of primary residences only. The maximum loan amount for FHA varies by county but in Central Florida it will be either $271,050 (Volusia) or $274,850 (Orange, Seminole, Osceola, Lake). These loans are used for purchases and refinances of primary residences only. The maximum loan amount for FHA varies by county but in Central Florida it will be either $271,050 (Volusia) or $274,850 (Orange, Seminole, Osceola, Lake).

The minimum down payment (purchase) or equity position (refinance) is 3.5%. The minimum credit score for FHA financing is 580. FHA requires both up-front mortgage insurance premium (MIP) which is financed into the loan and monthly MIP. The monthly MIP stays in place for the life of the loan. FHA loans offer easier qualifying terms than conventional loans. FHA loans are generally cheaper than conventional loans for borrowers with credit scores under 720 and down payments/equity positions less than 20%. Fixed and adjustable rate loans are available. Please contact Patriot Home Funding, Inc. to see which loan option is best for you.

With a fixed rate mortgage, the interest rate does not change for the term of the loan, so the monthly payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be.

Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.

A 30 year fixed rate mortgage is the most popular type of loan when borrowers are able to lock into a low rate.

Benefits:

  • Lower monthly payments than a 15 year fixed rate mortgage
  • Interest rate does not go up if interest rates go up
  • Payment does not go up, it stays the same for 30 years

Drawbacks:

  • Higher interest rate than a 15 year fixed rate mortgage
  • Interest rate stays the same even if interest rates go down

A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.

Benefits:

  • Lower interest rate
  • Build equity faster
  • If interest rates go up, yours is fixed

Drawbacks:

  • Higher monthly payment stays the same if interest rates go down
  • Interest rate stays the same even if interest rates go down

One of the ways we as a grateful nation thank our active duty military and veterans is with the VA guaranteed mortgage program. The VA mortgage program offers 100% financing with no monthly mortgage insurance requirement for all eligible veterans buying primary residence properties up to $417,000. The interest rates for VA loans are the same as FHA and the absence of a down payment requirement and monthly mortgage insurance makes the VA loan especially attractive and cost efficient. Fixed rate and adjustable rate loans are available. The owners of Patriot Home Funding, Inc. are both sons of World War 2 veterans. Patriot Home Funding, Inc. is proud to serve our veterans and are experts at VA financing.

The USDA Rural Guaranty program targets low to moderate income primary residence buyers in designated rural areas. USDA offers 100% fixed rate financing of the appraised value of the property to eligible owner occupant buyers in eligible areas. Please contact Patriot Home Funding, Inc. to determine if you are eligible and if the property is in an eligible area.

WE SAY YES WHEN BANKS SAY NO

Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes.

A reverse mortgage or home equity conversion mortgage (HECM) is a type of home loan for older homeowners (62 years or older) that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner’s insurance. Reverse mortgages allow elders to access the home equity they have built up in their homes now, and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower (or the borrower’s estate) is generally not required to repay any additional loan balance in excess of the value of the home.
Contact the home loan professionals at Patriot Home Funding, Inc. for further details and to determine your eligibility and whether a reverse mortgage is the best mortgage solution for you.

Patriot Home Funding, Inc. offers two basic types of renovation loans: FHA 203-k and FNMA HomeStyles. Both loan types can be used for purchases and refinances.
Both loan types allow repair, renovation, and financing of major appliances and systems with a few major differences:

a) FHA 203-k loans are capped by the local FHA loan limits (in central FL $271,050 or $274,850). FNMA HomeStyles loan limit is $417,000.

b) FHA 203-k does not allow walls to be moved or square footage to be added. FNMA HomeStyles allows both, in addition to water features (pools, spas).

c) FHA 203-k is for primary residences only. FNMA HomeStyles can be used for primary residence, second/vacation home, or investor properties.

d) FHA 203-k has no limit on the amount of repairs/improvements that can be financed as loan as the appraisal justifies it. FNMA HomeStyles caps the amount or repairs/improvements at 50% of the appraised value.

e) Many lenders have a credit score overlay for FHA 203-k’s, usually from 640 to 680. FNMA HomeStyles has a minimum credit score of 620.

Contact the lending professionals at Patriot Home Funding, Inc. for a full product description and consultation to determine which type of renovation loan works best for you. We also know several contractors who have experience with renovation loans who our funding sources have screened and approved and we would happy to recommend a professional contractor for you.

Mortgage programs formerly known as “sub-prime” are thankfully a thing of the past, but that doesn’t mean that there aren’t “outside the box” loan programs available.
Everybody’s situation is different, so why should all programs be the same? They aren’t! The experienced home loan professionals at Patriot Home Funding, Inc. are experts at non-conforming loans, which range from bank statement loans for the self-employed to “scratch and dent” loans for borrowers with recent adverse housing and credit events, like a foreclosure, short sale, or bankruptcy. Very few lenders offer these programs and even fewer know how to use them correctly to assist customers.
We say “yes” when the banks say no, and there is no better example of that than our portfolio of non-conforming loans.

Patriot Home Funding, Inc. offers a full array of investor loans, ranging from 85% LTV FNMA loans to 75% LTV loans using debt service ratios to qualify. We offer “delayed financing,” cash out investor refinance loans, and investor rehabilitation loans (FNMA HomeStyles).

Pierce Outlaw is a director in A.C.E.S. (Appreciation, Cash flow, Equity, Shelter) Investor Club which meets the second Thursday of each month at the West Volusia Association of Realtors, and has been sharing content and financing solutions with its very experienced membership in a master mind format monthly for 6 years. John Seybert and Pierce Outlaw are also members of C.F.R.I. (Central Florida Realty Investors) and are widely recognized in real estate investor circles as the leading local experts in investor lending.  Pierce has held workshops with several smaller investor groups around central Florida, earning Patriot Home Funding, Inc. and him recognition as the leading investor friendly mortgage source in the area.

Patriot Home Funding, Inc. can help with your investor loan needs, whether it is a single investor loan for an additional income stream or a broader real estate portfolio for seasoned investors.

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