Loan Programs
Loan Programs
Tailored Financial Solutions for Diverse Borrowing Needs
Loan programs are financial products structured to address diverse borrowing requirements. They offer a broad range of options tailored to various types of borrowers and their specific purposes.
Construction Loans
A construction loan is a form of temporary funding designed to finance the expenses associated with constructing or refurbishing a property. In contrast to a conventional mortgage, which issues the entire loan amount upfront upon purchase, a construction loan disburses funds gradually as the project advances. Normally, the borrower receives disbursements in stages, coinciding with key construction milestones like completing the foundation, framing, roofing, and so forth.
Home Equity Loans
A home equity loan enables homeowners to borrow funds by leveraging the equity in their property as security. Equity represents the discrepancy between the home's present market value and any outstanding mortgage or lien balances. Typically, these loans feature fixed interest rates and consistent monthly payments across a set timeframe, ensuring predictability and simplifying budgeting. They are commonly utilized for significant expenditures like home renovations, consolidating debts, covering medical expenses, or financing education.
Conventional Fixed Rate Mortgages (FRM)
A traditional fixed-rate mortgage features a consistent interest rate and unchanging monthly payments. This type of loan can be a good choice if you plan to remain in your home for many years.
We're here to simplify the home loan process with tools and expertise to guide you, beginning with our Fixed Rate Mortgage Qualifier.
We'll help you understand the differences between loan programs, enabling you to select the best option for your needs, whether you're a first-time homebuyer or an experienced one.
Adjustable Rate Mortgages (ARM)
An Adjustable Rate Mortgage (ARM) differs from a fixed-rate mortgage in that its interest rate fluctuates over time, unlike the fixed rate which remains constant throughout the loan's term. Initially, ARMs offer a lower interest rate compared to fixed-rate mortgages. As a result, an ARM might be a favorable choice if you intend to own your home for only a few years, anticipate an increase in your future income, or find the current fixed mortgage rates too high.
Jumbo Loans
A jumbo loan is a mortgage that surpasses the conforming loan limits established by Fannie Mae and Freddie Mac. As of 2022, the limit is $647,200 for most of the United States, except for Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where the limit is $970,800. Interest rates on jumbo loans are typically higher because lenders face greater risk with these larger loans.
Refinance Mortgage Loans
Refinancing a mortgage involves securing a fresh loan to supplant an existing one on a property. Typically, the aim of refinancing is to secure improved loan conditions, like securing a lower interest rate, shortening the loan duration, or transitioning from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage (FRM). Additionally, refinancing can serve as a means to tap into the equity in a home for diverse purposes.
FHA Mortgage Loans
An FHA loan is a type of mortgage insured by the Federal Housing Administration (FHA). This means that the federal government provides insurance for loans issued by FHA-approved lenders, reducing their risk of loss if the borrower defaults on mortgage payments.
The FHA program was established in response to the wave of foreclosures and defaults in the 1930s. It aims to provide mortgage lenders with sufficient insurance and to stimulate the housing market by making loans more accessible and affordable.
Reverse Mortgage Loans
A reverse mortgage is a loan available to seniors aged 62 and older. Home Equity Conversion Mortgage (HECM) reverse mortgage loans, insured by the Federal Housing Administration (FHA), enable homeowners to convert their home equity into cash without requiring monthly mortgage payments.
VA Mortgage Loans
A VA loan is a mortgage in the United States guaranteed by the U.S. Department of Veterans Affairs (VA) and can be issued by qualified lenders. This loan program is designed to provide long-term financing to eligible American veterans or their surviving spouses, as long as they do not remarry.
Self-Employed Borrowers
Self-employed borrowers are individuals who work for themselves and operate their own businesses, rather than being employed by a company or organization. These borrowers generate income through their business activities, which can include freelancing, consulting, entrepreneurship, or other forms of self-employment.
Borrowers With Considerable Assets
Individuals with substantial assets are borrowers who hold significant wealth across various forms, including real estate, investments, savings, and other valuable assets. Despite potentially lacking high regular income or traditional employment, these borrowers boast a considerable net worth. When pursuing loans like mortgages or lines of credit, they frequently utilize their assets as collateral to obtain advantageous loan terms, even if their documented income levels are comparatively lower.
Real Estate Investors
Real estate investors are individuals or entities that purchase, own, manage, or develop real estate properties with the primary goal of generating a profit. These investors can engage in various strategies, such as purchasing properties for rental income, buying and selling properties for capital appreciation, investing in real estate investment trusts (REITs), participating in real estate development projects, or engaging in property flipping.
Foreign Buyers
Foreign buyers are individuals or entities from outside a particular country who purchase property within that country. These buyers may acquire real estate for various purposes, such as investment, vacation homes, or permanent relocation. Foreign buyers often face unique challenges, including navigating different legal and financial systems, dealing with currency exchange rates, and meeting specific regulatory requirements for foreign ownership.
Buyers With Blemished Credit Histories
Buyers with blemished credit histories are individuals whose credit reports show a history of poor credit management, including late payments, defaults, bankruptcies, high debt levels, or other adverse credit events. These buyers often encounter challenges in securing loans or credit due to their low credit scores and past financial behavior.
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DibAfric Mortgage Team is run by Fatoumata Dibba, NMLS 1874628, who is empowered by the broker NEXA Mortgage LLC. www.nexamortgage.com 3100 west ray rd suite 201, office 209, chandler, AZ 85226, NMLS 1660690 AZMB 0944059.
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DibAfric Real Estate Team is run by Fatoumata who is powered by the broker One Premium Realty License #:40048065,
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