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Mortgage Financing Programs |
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Conventional Fixed Rate:
The interest rate is
fixed for the entire term of you loan. These are available for
all types of properties including single family owner occupied,
single family non-owner occupied, |
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investment properties, commercial real estate,
condominium units
and unimproved land or rural acreage. |
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Typically a down payment of 20% is required and if less than than
20% is invested, mortgage insurance is |
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required. We also allow for equities in lieu of down payment when the
loan is for refinancing or construction. |
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| Adjustable Rate Loans: The interest rate may
adjust during your loan term. Available for all
types of properties including those mentioned above. These loans
allow you to receive a rate of interest that is |
| the lowest possible in the current interest rate market. ARM’s
allow you to participate in the interest rate |
| risk and reward you for that risk by charging you a lower
rate of
interest. All of our adjustable rate loans are tied to an index (One
Year Treasury Bond adjusted to a constant maturity of one
year) this index |
| can be found in the Wall Street Journal. A margin is added to the index to determine the adjusted rate and then
rounded to the nearest 1/8 percent. |
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1-year
ARM - interest rate is fixed for the first year and subject to adjustment on the |
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anniversary date of the note and each year thereafter until maturity. |
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3/1
ARM - interest rate is fixed for the first three years and
subject to adjustment on the |
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anniversary date each year thereafter. |
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∙ 5/1 ARM
– interest rate is fixed for the first five years and subject to
adjustment on the |
| anniversary date each year thereafter. |
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| Combo Loans: A combination loan is designed
to finance the purchase of an owner occupied residential |
| property with little or no down payment with the
purpose of avoiding the mortgage insurance expense. This loan type
has stricter underwriting guidelines and requires the borrower to
exhibit a very strong credit |
| history and long-term employment stability with only a
modest level of debt. |
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80/20 – A 1st mortgage equal to 80% of the property
value amortized over any term not to |
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exceed 30 years. It is coupled with a second mortgage equal to 20%
of the property value |
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this second mortgage typically has revolving terms and prime based pricing. |
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∙ 80/10/10 – A
1st mortgage equal to 80% of the property value amortized
over any term not to |
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exceed 30 years. It is coupled with a second mortgage equal to10% of
the property value. |
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This second mortgage typically has revolving terms and prime based
pricing. The 10% |
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down payment makes up the third component.
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| 95% Financing: Everyone deserves the
opportunity to be a homeowner and everyone needs a place they can
call home. First Federal offers 95% financing for both fixed and
adjustable rate products. |
| 95% Financing with mortgage insurance, is now
available for up to thirty years. Because this |
| product is a
non-conforming loan and special underwriting exceptions are made the
interest rate is priced |
| slightly higher than
conventional financing. |
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| Rural Housing (RECD): For first time
homebuyers or homeowners with increased needs, this program |
| offers 100% financing for 30 year and may include funding for
closing expenses. A government |
| guaranteed loan specifically targeted to
rural communities. Typically this product allows for higher |
| payment and debt levels with lower credit
standards. Income limits apply to this loan based on the area median income. |
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