A Variety of Home Loan Options, Plus Advice and Expertise
At FLCBank, we take pride in offering the personalized service of a community bank while giving you access to all of the resources of larger banks. Our full service mortgage banking solutions are a perfect example. Whether your mortgage is for purchasing a new home, refinancing your existing home, construction of a new home or remodeling your existing home, we offer a wide range of mortgage options to meet your needs.
FIRST-TIME HOMEBUYER PROGRAMS
At FLCBank, we believe that buying a first home should be an exciting and memorable experience. Our Mortgage Lenders will take the time to explain the steps necessary for home ownership and will patiently answer all of your questions. Purchasing a home can feel like a bunch of big decisions all at once, especially for a first-time homebuyer, but there are several great options available specifically for First-Time Homebuyers.
HomeReady® by Fannie Mae is an affordable, low down payment mortgage product designed for credit-worthy low- to moderate-income borrowers, with expanded eligibility for financing homes in low-income communities.
- Low down payment; as little as 3% down for home purchases.
- Flexible sources of funds can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds.
- Non-occupant borrowers permitted
- Cancellable mortgage insurance (restrictions apply)
- Reduced MI coverage requirement for loan-to-value ratios above 90% (up to 97%)
- Easy-to-use, online Homeownership education course helps buyers get ready to buy a home and be prepared for the responsibilities of homeownership.
Home Possible® offered by Freddie Mac is an alternative to FHA. It features the ease of a conventional mortgage with a low down payment option and flexible credit terms. Designed for low-to moderate-income homebuyers or buyers in high-cost or underserved communities.
- Low down payment; as little as 3% down for home purchases.
- Down Payment can come from a variety of sources, including family, employer-assistance programs and secondary financing.
- Mortgage insurance (MI) can be cancelled after loan balance drops below 80 percent of the home’s appraised value.
- Mortgage term flexibility with fixed-rate and adjustable rate terms.
- Borrowers without credit scores are eligible for mortgages with down payments as low as five percent.
- Program is not limited to First-Time Homebuyers. Borrowers who meet the income requirements can qualify.
HomeOne offered by Freddie Mac
DOWN PAYMENT ASSISTANCE PROGRAMS
We are committed to supporting families and individuals who make their living serving others in the community and serving our country. As part of this commitment, we offer unique financial opportunity for eligible homebuyers with Down Payment Assistance (DPA) programs to help homebuyers with loans or grants that reduce the amount they need to save for a down payment.
Community Partners Product*
Community Partners Product provides up to $7,500 in home purchase assistance with funding provided as a 4 to 1 match. A homebuyer must contribution of at least $1,000. Funding is available to both first-time homebuyers and non-first-time homebuyers that meet product eligibility requirements.
Eligible homebuyers include current or retired:
- Law enforcement officers,
- health care workers,
- firefighters, and
- other first responders.
First-Time Homebuyer Product*
First-Time Homebuyers Product provides up to $5,000 in down-payment, closing-cost, and principal reduction assistance for the purchase or purchase/rehabilitation of a home by a first-time homebuyer. Homebuyers must meet product eligibility requirements and apply for funding through a participating member financial institution.
- Maximum funding per household is $5,000
- Funding is provided as a 4 to 1 match
- The homebuyer must contribute at least $1,000
- The homebuyer must have income that is less than or equal to 80% of the county area median income
Eligible properties include:
- Owner-occupied 1-4 family properties
- Townhouses, condos
- Foreclosed properties
- Manufactured and Mobile Housing
- New construction (within 30 days of closing)
The Veterans Products provide funding for a home purchase by veterans or active-duty members of any branch of the U.S. military, their spouses, or their surviving spouses. No homebuyer matching funds are required and the products are available nationwide.
Veterans Purchase Product
The Veterans Purchase Product provides up to $7,500 for a down payment, closing costs, or principal reduction to first-time homebuyers or non-first-time homebuyers for the purchase or purchase and rehabilitation of a home to be used as a primary residence. Eligible borrowers for Veterans Purchase Product are veteran homebuyers or homeowners that are currently serving or have served in any branch of the U.S. military, their spouses, or their surviving spouses
Returning Veterans Purchase Product
The Returning Veterans Purchase Product provides up to $10,000 for a down payment, closing costs, or principal reduction to first-time homebuyers or non-first-time homebuyers for the purchase or purchase and rehabilitation of a home to be used as a primary residence. Eligible borrowers for Returning Veterans Purchase Product: veteran homebuyers and homeowners that are currently serving or have served in an overseas military intervention for any branch of the U.S. military, their spouses, or their surviving spouses
Please contact one of our loan officers to determine if you are eligible for one of our DPA Programs and to begin your application process.
*Funding is available to qualified borrowers that meet product and income eligibility requirements.
FIXED AND ADJUSTABLE RATE MORTGAGES
Fixed Rate Mortgages
A fixed-rate mortgage features an interest rate that remains the same throughout the life of the loan, so your monthly principal and interest payment will be steady and predictable. This type of loan is an excellent option if you plan to stay in your home for an extended period of time.
When choosing a fixed rate mortgage, consider these factors:
- Typically requires at least a 5 - 25% down payment, but can go as low as 3% for First-Time Homebuyers.
- Amortization periods from 10 to 30 years
- Loans with less than a 20% down payment may require private mortgage insurance (PMI)
- The longer the term of the loan, the higher the overall interest you pay
- The shorter the term, the faster you build equity in your new home but monthly payments are typically higher on shorter term loans than longer term loans
Adjustable Rate Mortgages (ARM)
If you plan to own your home for a short while or you expect your income will increase, an Adjustable Rate Mortgage (ARM) may be your best option. Adjustable rate mortgages have interest rates that may vary up or down at fixed intervals, and often offer a low beginning interest rate that will go up after a certain time.
When considering an adjustable rate mortgage, remember these factors:
- Based on the term of your loan, the interest rate is fixed for a set number of years and then adjusts annually.
- The interest rate will rise and fall with the market. This means your monthly payments could change depending on the market interest rate at the time of your rate adjustment.
- Adjustable rate mortgages do offer safeguards called “caps” that set pre-determined limits on how high your mortgage rate can rise. A cap limits the maximum your payment will increase at each interest rate adjustment and over the life of the loan.
FHA, VA, AND USDA
Government backed loans make it easier to qualify and with less money down. VA and USDA loans are currently the best way to buy a home, and the only mortgage with zero down payment required. These specialty loans often feature low or no down payment for those who qualify. VA and USDA loans are currently the best way to buy a home, and the only mortgage with zero down payment required.
Offered through the Federal Housing Administration, an FHA loan is an affordable option when you’re looking to get into a home with a smaller down payment, lower closing costs and with limited credit reporting to credit agencies.
An FHA loan has no income limits and is not limited to First-Time Homebuyers. Anyone can obtain an FHA loan, but usually FHA limits you to one FHA financed property at a time. This program will also allow for someone who will not occupy the property to co-apply, thus allowing for easier qualifications.
When selecting an FHA Loan, keep these factors in mind:
- FHA loans have lower down payment options
- Loans are available in a variety of loan terms, and are offered in fixed rate programs or ARM programs
- An FHA loan requires government-sponsored mortgage insurance called monthly mortgage insurance (MI)
- This type of loan allows for more flexibility in income, debt and credit requirements
Your down payment and closing costs may come from a gift or grant
VA loans are one of the only mortgages to offer 100% financing, require no down payment and favorable loan terms for Active Duty Service members, Veterans, Reservists, National Guard members, surviving spouses, and certain other individuals who meet eligibility requirements to purchase homes or refinance existing mortgages.
In addition, VA loans offer refinance and cash out options that can be used to pay off debt, fund major expenses, make home improvements, or refinance a non-VA home loan into a VA home loan with improved terms.
When considering a VA loan, you can benefit from:
- Low to no down payment
- No MMI (monthly mortgage insurance) or PMI (private mortgage insurance) is required
- More flexible income, debt and credit requirements
- VA loans offer more flexible gift guidelines: your down payment or closing cost may come from a gift or grant
- Allows for the seller to pay all closing cost and prepaids for the veteran up to 6% on a 100% loan
- VA loan programs are available in variety of loan terms
There is also a streamlined option known as an Interest Rate Reduction Refinance Loan (IRRRL) that provides veterans with existing VA loans an opportunity to quickly and easily refinance an existing VA loan when market conditions improve and interest rates drop.
VA loans are guaranteed by the Department of Veterans Affairs. Veterans must provide a VA Certificate of Eligibility (COE). Learn more about COE
USDA loans are an excellent option for a homebuyer looking to purchase a home in USDA designated rural areas and allows you to purchase a home with flexible qualification requirements and no down payment. USDA loans are available from the United States Department of Agriculture Rural Development Department.
When considering a USDA Loan, keep these factors in mind:
- The loan amount can be up to 100% of the appraised value of the home
- The seller may pay up to 6% towards closing costs and prepaid items
- Gifts and grants may also be used for down payments.
- A USDA loan requires a one-time Guarantee Fee that may be financed into the loan
- This type of loan requires a reduced monthly MMI
A USDA loan has income limits and property location restrictions. Click here to see if the property you are considering is in an eligible USDA area.
A jumbo, or non-conforming, loan provides financing for loan amounts higher than the maximum conforming limits of $484,350 in most U.S countries, set by Federal Housing Finance Agency. It may be a good choice if you have a higher property value and can manage larger monthly mortgage payments.
Jumbo loans are available for purchase and refinance loans (including cash-out refinances) up to $3 million. They can be used to finance primary residences, second or vacation homes, and investment properties. Jumbo loans are available in a variety of loan terms, from 15 and 30 year fixed rated and 5, 7, or 10 year adjustable rate.
As a premier provider of million dollar home loans, FLCBank is expert at accommodating large loan amounts and creating custom mortgage solutions:
- Competitive rates
- Loan amounts up to $3.5 million or more
- 90% financing on purchase loans
- Extensive range of mortgage programs and options
- Interest-only options available
- Highly competitive non-resident alien programs