Mortgage Products
Mountain State Financial Group offers the optimal mortgage solution for every type of home buyer. Whether you are buying your first home, downsizing or upgrading to a new one, or you are a seasoned real estate investor who has already built up an expansive portfolio, we are standing by to understand your unique goals and financial circumstances – and then create the ideal mortgage for your upcoming purchase.
Mountain State Financial Group offers a broad range of mortgage products, including:
- Conventional mortgages
- VA loans
- FHA loans
- Jumbo loans
- Reverse mortgages
- Fixed-rate mortgages
- Construction mortgages
- Adjustable-rate mortgages
Conventional
Most popular home mortgage
Conventional loans are the most commonly-used loan for home purchases and for refinances. They offer flexible financing for a new primary residence, vacation home or investment property, and their underlying terms and conditions meet the funding criteria for the government entities Fannie Mae and Freddie Mac. Approximately 35-50 percent of all mortgages are conventional mortgages, with some variation in the percentage due to market conditions and consumer trends. The most favorable pricing (lowest interest rate) for a conventional mortgage requires an excellent credit rating.
FHA
Federal Housing Administration
Popular with first-time homebuyers Federal Housing Administration (FHA) mortgages are loans issued by federally qualified lenders. These loans are insured by the Federal Housing Administration. FHA loans offer an attractive interest rate and more flexible qualifying requirements than conventional mortgages. They’re designed for low-to-moderate income borrowers with smaller available down payments and lower credit scores. As of 2016, FHA loans permit the borrower to borrow up to 96.5 percent of the value of the home. The remaining 3.5 percent down payment can come from a gift or a grant. This last stipulation makes FHA loans popular with first-time homebuyers. The refinance of an existing FHA loan may be accomplished without an appraisal or an income requirement.
VA
Mortgages for veterans
Veterans Affairs (VA) mortgages are among the most attractive mortgage options and benefits available to loan applicants. VA mortgages offer eligible American veterans or their surviving spouses (provided they do not remarry) as well as active/reserve duty veterans the opportunity to purchase a primary residence with no down payment and no monthly mortgage insurance. The Department does not directly originate VA loans but they do establish the rules about who may qualify. The VA Department also sets the terms of the mortgages and insures VA loans against default. The refinance of an existing VA loan requires little or no equity in the property.
Reverse Mortgages
Reverse mortgages or home equity conversion mortgages (HECM) provide refinancing and purchase options for homeowners age 62 and older. A reverse mortgage allows homeowners to borrow money against the value of their home. No repayment of the mortgage is required until the borrower dies or the home is sold. These mortgages require no monthly payments; however, borrowers are still responsible for property taxes and homeowner’s insurance. Reverse loans offer greater financial flexibility at or near retirement when income typically declines. Reverse mortgages can also decrease the need to sell other assets during downswings in the market. This product is gaining in popularity as record numbers of baby boomers look for income options in retirement.
This material is not from HUD or FHA and has not been approved by HUD or a government agency.
Construction
What Is a Construction Loan?
Also known as a “self-build loan,” a construction loan is an advance which covers the costs associated with building a new piece of real estate. A construction loan typically is short-term, and requires the new home to be built within one year of assignment. The short term in which it must be repaid also means a construction loan carries a higher interest rate.
How Does a Construction Loan Work?
Once the lender has reviewed the borrower’s plan and determined how much money their project will require, they schedule to make regular payments called “draws” directly to the borrower’s contractor. The borrower makes interest-only payments, which vary in relation to the prime lending rate, until the project’s completion. At that point the borrower transfers over to a regular fixed rate mortgage.
How Do You Get a Construction Loan?
Because it is considered risky in relation to more traditional types of loans, the lending requirements for a construction loan are more stringent. To qualify you will need:
- Good to excellent credit
- Stable income
- A low debt-to-income ratio
- A 20 percent minimum down payment
Don’t wait for your dream home to appear. Build it yourself! Contact us today to learn how a construction loan can work for you.
Call Mountain State Financial Group today and make certain your next home mortgage is the best one for you!
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