LEARN

 

Education is the cornerstone to building a successful future and without the proper education it’s often difficult to make big life decisions, such as purchasing a home.  Please take the time to review and educate yourself on the mortgage products and programs available to consumers.  Coach Zach takes pride in educating his clients from start to finish.  The educated client who better understands the mortgage process will usually have a much more positive home buying experience.  However, please be aware, there is a lot of information and intricacies of the mortgage business.  The information provided is basic information to assist in preparing borrowers.  Any questions for the professionals should be directed to Your Mortgage Coach Zach, who has the experience and knowledge.

CONVENTIONAL

Conventional loans are usually categorized into Conforming Loans or Non-Conforming Loans.  The easiest way to differentiate the two is that a Non-Conforming Loan is a loan amount above $417,000 which is often referred to as a Jumbo Loan.  Conforming loans can also be noted as a loan which meets or “conforms” to secondary market guidelines so that it can be sold to investors.  Typically, Non Conforming loans do not meet these re-salable guidelines.

The traditional down payment for conventional loans is 20% of the purchase price.  However, there are instances where a borrower can put less but there may be an extra charge on the loan called PMI (Premium Mortgage Insurance).  This “extra” amount can be paid monthly with your mortgage payment and will can be removed once the loan to value meets specific guidelines.

Debt to Income ratio requirements for conventional loans must fall below 36% (housing expense vs. income) and 42% (all expenses vs. income).  A 720+ credit score is usually required; a borrower can still have a lower credit score but it may come at a price when applying for the mortgage.

Conventional Loans are amortized over 30, 25, 20, 15, and sometimes 10 years. They are typically fixed interest rates over that time period unless a refinance takes place, thus lowering the interest rate.  ARM (Adjustable Rate Mortgage) loans are available for conventional products.

 

FHA

FHA(Federal Housing Administration) loans are designed for individuals who are unable to make a large down payment. FHA loans allow the borrower to have a down payment as low as 3.5% which can come from a gift or a grant, which makes FHA loans popular with first-time buyers.

PMI (Premium Mortgage Insurance) is charged to borrowers who do not put 20% down even on FHA Loans.  The PMI is charged up front on top of the loan amount as well as monthly for this product.  The FHA borrower credit score requirement is 620+ and is offered loans amortized over 30 and 15 years for both fixed interest rates and adjustable rates. FHA Loans have traditionally required more documentation from the borrower when the loan is submitted.

 

VA

The VA Loan program was established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. The Department of Veterans Affairs does not directly originate VA loans; instead, they establish the rules for those who may qualify, dictate the terms of the mortgages offered and insure VA loans against default.

The borrowers my finance up to 100% of the purchase price on the home. In order to qualify for a VA loan, borrowers must present a certificate of eligibility, which establishes their record of military service. A 620+ credit score is required with loan terms of 30 and 15 years with fixed interest rates.

 

Call

O: 614-602-3646

C: 740-398-4917

 

NMLS

#926390

 


 

Contact

 zach.williams@yourstatebank.com

State Bank

4080 W Dublin-Granville Rd

Dublin, OH 43017

The State Bank and Trust Co. and its loan officers, are not liable for information, claims or agreements made by/between the public and third-party entities. These third-party entities may include, but are not limited to: builders, developers, or real estate agents. Even though the loan officer co-sponsoring this site makes efforts to update the information contained, much of it is provided by independent vendors and data feeds, and thus, this site may contain errors, outdated information or purchase conditions, promotions, incentives and/or possible omissions. The State Bank and Trust cannot guarantee the accuracy of information provided, and we encourage buyers to complete their own due diligence in making a decision to build or purchase a home. We also suggest that you seek the professional representation/advice of a licensed Realtor®, as well as any other licensed professional that is appropriate to your purchase decision, including, but not limited to: attorney, accountant, or certified financial planner. Visitors to this site are responsible for the use and decisions made regarding the purchase of a home with regards to the information contained herein. The State Bank and Trust Co. is an Equal Housing Lender. 


Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. The State Bank and Trust is an Equal Opportunity Lender. | Privacy Policy