Home buyers have many mortgage loan options at Enterprise Mortgage.  We’ll help you choose the mortgage that (1) provides the most advantages and (2) fits your budget.  Your possibilities include FHA and VA loans; traditional mortgages that still work for many home buyers; non-traditional mortgages that offer a variety of payment plans; and other mortgage plans that range from refinances to HELOCs (home equity lines of credit).

Here’s some basic information:

FHA LOANS.  Far greater benefits than more traditional mortgages:

• Down payment as low as 3%.  Home buyers can use outside funds – a gift from parents or funds from AmeriDream, for example – to reach the 3% level.

• FHA-insured ARMs (adjustable rate mortgages) have better rate protections than many traditional ARMs – a maximum 1% increase per year and a 5% lifetime cap.

• Easier refinancing.  No new credit checks, income or employment verifications, or appraisals if your payments have been on time for the previous 12 months.

• No income ceiling for FHA-approved borrowers.

• Home buyers with less-than-perfect credit often can quality for an FHA mortgage.

• Home price is not necessarily a factor in FHA eligibility.

• 15-, 20- and 30-year fixed rate terms.

• 1-year ARM available.  Also ARMs with rates fixed for the first 3, 5 or 7 years.

• Reverse mortgages.  These unique loans allow qualifying older homeowners to use the equity they have built up in their homes to meet living expenses.  There’s no need to move, and (typically) no monthly repayments are required.

• VA loans for qualifying veterans have many of the same features.  Ask us for details.

OTHER HOME LOANS

• Refinances.  Lower your interest rate to reduce monthly mortgage payments.  Consolidate high credit card and other bills.  Take cash out for college or other expenses.

• HELOC.  A home equity line of credit gives you the freedom to tap into your home’s increased value for nearly any purpose:  A new roof or other home repairs, for example.  New kitchen.  Remodeled bathroom.  Room addition.  That special anniversary trip.  Tuition payments.

• Home equity loan.  Rather than writing checks as the money is needed, you get your funds in a lump sum payment.  Same uses as HELOC, above.  Sometimes called a 2nd mortgage.

• Jumbo mortgage.  For home buyers who need a mortgage in excess of $417,000.

TRADITIONAL MORTGAGES

• 15-year fixed rate mortgage provides the benefits of fixed principal and interest payments over the life of the loan.  Significant total interest payment savings, because loan is repaid in just 15 years.

• 20- and 30-year fixed rate mortgages combine the benefit of fixed principal and interest payments and, with longer loan terms, generally the lowest monthly cost.

• ARMs, or adjustable rate mortgages.  Lower monthly payments in the early years.  Rates and payments adjust on a pre-determined timetable of, typically, 3, 5 or 7 years.  1-year ARMs available.  Rate increases generally caped at 2% annually and 6% lifetime.

NON-TRADITIONAL MORTGAGES

• Bi-weekly mortgage.  Half-size payment every two weeks rather than one payment a month.  Homeowners build equity faster because more frequent payments reduce loan principal more quickly.  Can save thousands of dollars in interest payments.

• Interest-only mortgage.  Designed for home buyers seeking the lowest monthly payment, but other home buyers sometimes use this plan to purchase a larger home.  Initial principal and interest payments are interest-only.  Later payments are higher.

• Option ARMs.  You choose the amount of payment each month:  Payment equivalent to a fully amortized 30-year mortgage; payment that matches a 15-year fully amortized loan; interest only; or pre-determined minimum payment.  Subsequent payments can be higher.

• Investor 100% financing.  100% financing for qualified investors.

• 103%-107% loan-to-value purchase mortgages.  Qualified home buyers can cover down payment and closing costs with this mortgage, essentially buying a home with no out-of-pocket expenses.