Purchasing a home in Colorado is a wonderful and exciting venture. Your home will be unique – just like you; your loan process should be just as unique.
All home loans are not created equally. Securing the right home loan for you and your family is vital to making your purchase process as cost-effective and effortless as possible. Banner Mortgage will work with you to determine which loans you may qualify for, and which loan type might be best for your unique situation and goals. If you’re the type of person who likes to learn the details of each loan type, we have provided a comprehensive list below. If you have any questions or would like to learn more about any of the programs below, please do contact Banner Mortgage today! (303) 646-2466.
These loans provide mortgages that are insured or guaranteed by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), and offer buyers a “basic” mortgage with lower upfront costs. These government-backed mortgages provide security to the banks that if for some reason you’re not able to fully repay the loan, the FHA or the VA will pay the bank instead. This means the lender may be more willing to approve a loan application in situations where they might not have otherwise.
Benefits to an FHA or VA Loan:
Restrictions:
For those who need a larger mortgage, but still want the convenience of having a VA-backed loan. Similar to the VA loan above, this loan type provides qualified buyers with the convenience of lower down payments and other benefits. However, this loan type is for buyers who wish to purchase a property above the conforming loan limit.
Benefits to a VA Jumbo Loan:
Restrictions:
For those who need a larger mortgage, but still want the convenience of having a VA-backed loan. Similar to the VA loan above, this loan type provides qualified buyers with the convenience of lower down payments and other benefits. However, this loan type is for buyers who wish to purchase a property above the conforming loan limit.
Benefits to a VA Jumbo Loan:
Restrictions:
Specialty loans are tailored just right for those who live in rural areas and meet household income guidelines. Your dream is to live quietly away from the noise and distraction of the city. You love life free of distractions and a life that is simplified. Your loan should mirror that lifestyle. Moderate requirements allow you to focus on what matters most to you.
Benefits to a USDA/Rural Housing Loan:
Requirements:
Ready to have a modular home built? You’ll need a special kind of loan since there will be periodic payments made as work is completed. When you’re ready to build your home, you’ll use this type of “construction loan” or “short-term loan.” This loan will provide a series of payments as work is completed. Once the local building inspector issues a certificate of occupancy and the lender agrees that the home is essentially complete, the lender pays off the construction loan and issues you a mortgage.
Benefits to a Manufacture/Modular Home Loan:
Requirements:
Qualifying for a traditional mortgage refinance is harder now than in the recent past. However, a streamline refinance can make your dreams of reducing costs on your current mortgage possible. This home loan is literally streamlined to make the process easier, takes out a lot of the legwork, and usually increases your chances of being approved.
Benefits to a Streamline Refinance:
Requirements:
Conventional loans include any loan for a mortgage that is not insured by a government program. Conventional home loans do not carry the stipulations and requirements that many other types of loans do and therefore are a great choice for basic mortgage processes.
Benefits to a Conventional Loan:
Requirements:
The biggest difference between a purchase loan and a refinance loan is that the borrower usually doesn’t have to pay for closing costs out of pocket.
Here are some quick facts:
For large parcels of bare land with a home on them, Large Acreage loans are perfect. These loans are not for agricultural or commercial purposes. If you’re a hobby farmer (where the primary income is not derived from your property), or your home sits on a large plot of land, this loan could be right for you.
Down payments, terms, and rates vary based on your equity and your short or long-term plans for the land.
For those that dream big! If you refuse to settle for something that someone else dreamed up, a Construction-to-Permanent Loan may be right for you. Do you want to literally build your dream home from scratch? Or, do you want to take the home you have and add on to it to make it into your dream home? Whether building from the ground up or launching into a major renovation, this loan might be what you’re looking for to make your dreams a reality.
Benefits of a Construction-to-Permanent Loan:
Eligibility Requirements:
These two terms refer to the interest rate that will apply to your mortgage. Fixed-rate means just what it sounds like – the rate you set when you take out the loan is fixed at one amount. Adjustable-rate mortgages (commonly referred to as ARM) mean that your interest rate may go up or down dependent upon the market. The adjustment of the interest rate you pay on your mortgage is tied to a broader measure of interest rates, called an index. If the index is higher, your interest rate – and thus your payment – will go up. Fortunately, when the index is low, you benefit from lower interest rates and a lower payment. Sometimes an ARM loan will start at a very low rate for a particular period of time. However, once that “introductory” period is over, your rate will flex with the index. Additionally, ARM’s sometimes have caps on how high they’ll go or limits on how low they’ll fall.
A Fixed Rate Loan may be best for you if:
An Adjustable Rate Mortgage (ARM) may be the right fit for you if:
Both loan options come with their own eligibility requirements and pros and cons.
Although a horse may be part of your family, finding the right loan for a horse property is not as easy as finding a standard home loan. Horse properties, and thus loans to purchase them, are complicated for lenders who aren’t versed in the intricacies – lucky for you, we know horse properties. More than just a home on a substantial size lot, a horse property may have amenities such as a stable, tractor barn, indoor rings, or extensive turnouts. Unfortunately, lenders are often reluctant to offer loans on these properties without many comparable properties (or “comps”) to assess your property’s value against. So the beautiful barn, with a heated tack room and running water, may be seen as an additional outside building, and thus valued lower. If you’re ready to purchase or build a quality horse property, you’ll want a knowledgeable lender on your side.
The heart of America lies in our farmers. You work hard every day to provide for your family – you shouldn’t have to work at getting a loan. Whether you are buying a farm, expanding your operation, or making long-term improvements, we are here to help you every step of the way with a Farm Loan that fits your unique situation. You’re not buying “just a house” or “just land” – you’re buying a dream.
Mountains or Beach? City or Country? Warm year-round or all four seasons? You’ve worked hard so now you don’t have to choose. When you’re ready to have the get-away home to escape the buzz of the city or a cozy beach-front property to escape the bite of winter, a second home loan might be the fit for you. Many of the traditional home loan options will still be available for you to purchase your second home; however, a second loan –any other loan – has specific criteria that must be met. With a second home loan, your debt-to-income ratios and credit score will be even more heavily scrutinized than with your first home loan.
Other qualifications are:
For home purchases that don’t conform to the limits of traditional home loans. Larger properties, properties with the latest amenities, and those that are in the neighborhood of your dreams – all could be priced above the “mortgage conforming limit”. This limit is set at $417,000 for most parts of the country but can be as high as $625,501 in some areas. If the home your family wants to live in is priced above the conservative loan limit, a Jumbo Loan could be right for you.
Benefits to a Jumbo Loan:
Eligibility Requirements:
Savvy investors know that real estate offers great opportunities for additional income. If you’re ready to take the steps towards your own investment property, this loan may be right for you. With more leniency than a second home loan, this loan allows you to purchase multi-unit properties and doesn’t require that you reside on the property.
Benefits to an Investment Property Loan:
Eligibility Requirements:
Sometimes having more than one of something can be a good thing. When it comes to loans, that is probably not the case. If you’ve got multiple loans that you’re repaying, using a consolidation loan to combine them can lead to short and long-term benefits.
Benefits of a Consolidation Loan:
Eligibility Requirements: