LOAN PROGRAMS
One Time Close Construction Loans!
With our one time close construction loan, you have the opportunity to pick your builder and only have one closing! You also eliminate market risk on interest rates!
Advantages of One Time Close Construction Loan:
- Finance your custom home before the loan is complete
- Low costs during building from interest only payments
- Pick your lot and Builder
- If lot owned but not free and clear/pay off with close of construction loan
- Payments during construction phase based on draw amount owed and interest only
- Lock in rate at beginning of construction
- Float rate down to lower when house is complete if interest rates are lower
- Low down payment needed
- One close with rate locked in at beginning rather than the traditional 2 close loan where construction loan rate is based on prime plus and second appraisal needed at the end as well as second closing requalification is needed along with another closing which greatly increases the costs
- 11 months given to complete construction
- 5% overage contingency built in to construction.
USDA Loans
USDA loans are backed by USDA, and they allow you to purchase, refinance, a home and have “combined income” limitations. This program is designed for more rural type areas with low interest rates and zero down payment.
VA Loans
A VA loan is a loan guaranteed by the U.S. Department of Veterans Affairs (VA). The loan may be issued by qualified lenders. The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses. The basic intention of the VA direct home loan program is to supply home financing to eligible veterans and to help veterans purchase properties with no down payment. The biggest benefits are the zero down payment option and lots of times interest rates lower than conventional financing and not as strict underwriting guidelines as conventional loans.
FHA
FHA stands for the Federal Housing Administration, a government agency within the Department of Housing and Urban Development. One of the most common mortgage programs available is the FHA loan. For many, an FHA loan is a fantastic option to buy a home. The main benefit is the 3.5% required down payment when buying. If a borrower does not have a credit history on a credit report, alternative credit can be used such as rent, utility bill pay history, phone bill, etc. Also sometimes these loans can be done when people have credit scores under 600. All in all, it is a very good loan for those starting out without much credit history and a smaller down payment.
First Pinnacle Mortgage Corporation is not affiliated or endorsed by the government, VA, or FHA.
Conventional Loans
If borrowers have very good credit and/or a sizeable down payment, these loans are usually the way to go except in a couple of other circumstances. Also, unlike USDA, FHA and VA financing, these loans allow financing for second homes and investment properties.
Reverse Mortgages
These loans are for seniors 62 and over. They can be used to purchase a house and not have a mortgage payment or payoff an existing mortgage so the homeowner(s) do not have to worry about making a monthly payment. Borrowers can also take cash out of their homes in a reverse mortgage and not have a mortgage payment. Even though these sound like simple loans, how they work can be very complicated. We recommend reaching out to us if you are interested in this product because there is a good bit of information that needs to be conveyed so you can make an informed decision on if this loan is best for you. A Reverse Mortgage can be a great product for many people.
NON QM/Other Financing
We also have programs geared towards self employed borrowers by deriving their income from their bank statements and not their tax returns as well as other programs geared towards these types of income earners. The down payment requirements are higher and interest rates are a little higher than the traditional types of financing also.