If you are active duty military and you have PCS (Permanent Change of Station), here are five reasons to consider using your VA Home Loan Benefits to purchase a home in your area:

1. Competitive Interest Rates: Even with less-than-perfect credit
2. 100% Financing
3. Flexible Credit Requirements: We’ll work with your credit and give you plenty of options along the way
4. No Monthly Mortgage Insurance: Unlike conventional and FHA loan products with monthly mortgage insurance premiums that could add to your monthly payment, there is NO monthly mortgage insurance with the VA loan
5. VA Funding Fee Financing: The VA funding fee can be financed into the loan

*A down payment is required if the borrower does not have full VA Entitlement, or if the loan amount is greater than $424,100. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit standards, and property limits

We want our new homebuyers to feel that they:

• Understand the entire loan process from start to finish
• Are not wasting money
• Are prepared to safely own a home
• Have a sound financial plan that will allow them to live comfortably in their new home

We have a variety of home loan programs available for first-time homebuyers. Even if you do not have a long credit history or a large down payment, our Mortgage Planners are happy to meet with you for a complimentary look at whether now is the best time to buy your first home.

With the fluctuating market, jumbo home mortgage loans do call for stricter requirements than in years past, but still follow a similar process that a typical loan would. You will generally need a 20% down payment and could potentially receive lower fixed or adjustable rates offering flexibility for financing with a bigger loan.

When choosing a jumbo loan . . .

You must consider that you are looking at higher interest rates, but also recognize that a jumbo loan provides the convenience of one loan for the entire amount you are looking to borrow instead of several loans. Plus, you can add extra features such as interest-only payments or temporary buy-downs.

*Eligibility subject to program stipulations, qualifying factors, applicable income requirements, and property limits. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

There are many benefits to refinancing your home:

• Paying down current debt
• Reducing monthly mortgage payments
• Funding large life events such as college tuition or a wedding

We would be happy to take a look at your current mortgage interest rate and provide you with details on whether refinancing is right for you.

Some of the benefits of USDA loans are:

• Fixed interest rates
• No down payment
• No maximum loan amount
• Available for new or existing homes
• 100% financing
• Seller can pay closing costs
• Affordable 30-year loans

The government insures USDA loans. They are limited to certain “rural” areas, although many of the available areas are very close to urban areas. USDA has set maximum allowable household income limits for the program.* Call Fairway today to discuss the USDA Loan Program or to find out about other loans that may fit your needs.

*USDA Guaranteed Rural Housing loans subject to program stipulations and applicable state income and property limits.

The goal was to allow neighborhood revitalization and greater homeownership opportunities. An FHA 203(k) loan is designed for houses that are damaged or in need of rehabilitation. This loan covers not only the cost of the property, but also the cost of necessary home repairs. A vast range of repairs, including bathroom remodeling, roofing, flooring, and air conditioning systems can be funded with this loan.

Often the loan will also include up to 20% “contingency reserve” so that you will have the funds to complete the remodel in the event it ends up costing more than the estimates suggested. The remodeling funds include parts and labor and the work must be performed by a licensed general contractor.

Which houses qualify for the Streamline 203(k)?

There are two types of FHA 203(k) loans, regular and streamlined. Streamline 203(k) loans are for homes that do not need structural repairs and have limits on the amount of renovations being done.

In order to qualify, homeowners must plan to live in the home they are repairing. The following types of residences qualify:

• Existing construction that is at least a year old
• Single-family, two-family, three-family or four-family dwellings
• Condos, if they have been approved for FHA loans
• Buyer must have a minimum credit score of 640
• Maximum loan amount varies depending on location

Conventional home mortgage loans have either fixed or adjustable rates. A fixed-rate mortgage, or FRM, means that your mortgage monthly payments remain fixed for the period of the loan and typically have a term of 15 or 30 years. A shorter-term loan usually results in a lower interest rate. An adjustable-rate mortgage, or ARM, fluctuates in relation to the rate of a standard financial index; therefore, monthly payments can go up or down accordingly.

Due to origination fees, down payments, mortgage insurance, points, and appraisal fees, borrowers completing a conventional loan may have to show up at closing with a sizable sum of out-of-pocket money, or be prepared to roll over some of these costs into their mortgage amount, which may result in a higher loan rate. If you are selling your current home, however, you will likely have money from your sale to offset these costs. Because these mortgages generally require higher down payments than the other options, the home’s equity can build more quickly.

Fairway specializes in FHA mortgage loans

Fairway Independent Mortgage specializes in FHA mortgage loans, especially for first-time homebuyers or those without a 20% down payment. For those with a lower credit score or credit issues, our underwriters can explain some variances in payment and put your loan on the road to success. Even in the case of filing bankruptcy, a borrower may obtain an FHA loan after two or more years of re- establishing good credit. Our FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Sub-prime ARMs were rarely a sound part of a mortgage plan and, in fact, were often pushed on homebuyers by greedy lenders. Home- buyers were usually overly optimistic as well, so they can shoulder some of the blame for buying something when they didn’t know all of the risks. However, the good news is that sub-prime 2-year ARMs no longer exist, so they aren’t a threat to a homebuyer.

Today’s ARMs are much different and pretty safe for some homebuyers. They usually will have a fixed-rate period for the first 5 or 7 years, and then will adjust after that. The trick to these loans is to only use them if:

• You are going to save too much money to pass them up
• You are pretty sure you will only use the money for 5-7 years
• You have a plan to pay off the loan in 5-7 years

Saving too much money to pass up an ARM?

As part of a mortgage plan, a homebuyer could choose a 7/1 ARM and then apply the monthly savings to paying off the loan faster. For homebuyers making a less than 20% down payment and paying PMI, a 7/1 ARM can be a great loan strategy for a disciplined homebuyer to use to build equity faster – as long as the monthly savings are used to pay down the loan faster to get rid of PMI. If you are only going to own your home for 5-7 years or less, the lower rate on an ARM could make sense for you, as well. For some people, the plan is to carry a mortgage for 5-7 years.