FHA Financing
FHA financing is a government-insured financing program that allows for
lower down payments and more relaxed qualifying guidelines than
conventional loans. FHA loans allow qualifying ratios of 29%/41%. This
means that up to 29% of your gross monthly income may be used for the
payment of your mortgage, and up to 41% of your gross monthly income may be
used for your total monthly debts (i.e., credit cards, car loan payments),
including the amount of your new mortgage payment. FHA financing requires
FHA mortgage insurance in lieu of traditional private mortgage insurance.
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VA Financing
VA financing is designed to benefit veterans of the armed services,
those currently in active duty or the reserves, and their spouses. You may
be able to obtain VA purchase financing with zero money down. VA loans
allow a qualifying ratio of 41%. This means that up to 41% of your gross
monthly income may be used for your total monthly debts (i.e., credit
cards, car loan payments), including the amount of your new mortgage
payment.
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Fixed-Rate Mortgages
This type of mortgage provides the security of knowing that your payment
of principal and interest will remain the same throughout the life of your
loan. Fixed-rate loans may be advantageous for borrowers who are on a fixed
income, borrow money during a low interest-rate environment or plan to stay
in their home for a long period. Various terms are available from 10 to 30
years. For a single family residence with conventional financing, the
maximum conforming loan amount is $417,000; FHA loan maximum is based on
the maximum county limits for the location of the property; VA loan maximum
is $203,000; and a jumbo loan is available for loans amounts of $322,701 up
to $1,000,000.
United Bank offers the following Fixed-Rate Loan Programs:
- Conventional Fixed-Rate Loans from 10 to 30 years
- FHA Fixed-Rate Loans from 10 to 30 years
- VA Fixed-Rate Loans from 10 to 30 years
- Jumbo Fixed-Rate Loans from 10 to 30 years
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Adjustable-Rate Mortgages (ARMs)
The interest rate on these loans fluctuates periodically in response to
changing market conditions. Therefore, your monthly mortgage payment will
increase or decrease accordingly. If you predict interest rates will remain
stable and expect your income to increase or plan to sell your home in a
few years, a 30-year ARM plan may be right for you. Interest rates are
based on an index plus a margin and adjustment caps, giving you the
security of knowing that your rate can never go above a certain level. You
may choose to have your rate adjusted at the end of 1, 3, 5, or 7 years,
then every year thereafter. Traditionally, ARMs have lower initial interest
rates that are typically 2-3 percentage points below conventional
fixed-rate loans. Due to this, the interest rate and payment on an ARM
often increase after the initial period even if market interest rates do
not change. This lower interest rate and lower initial monthly payment may
enable you to qualify for a larger home loan. Any prepayments you make will
be reflected in the mortgage balance and payment at each adjustment period.
United Bank ARMs are not negative amortization loans. For a
single-family residence, the conventional conforming loan maximum is
$417,000; FHA loan maximum is based on the maximum county limits for the
location of the property; jumbo loans are available from $417,000 up to
$1,000,000.
United Bank offers the following Adjustable-Rate Loan Programs:
- Conventional 1-Year ARM with 2%/6% caps
- Conventional 3-Year ARM with 2%/6% caps
- Conventional 5-Year ARM with 2%/6% caps
- Conventional 7-Year ARM with 2%/5% caps
- Jumbo 1-Year ARM with 2%/6% caps
- Jumbo 3-Year ARM with 2%/6% caps
- Jumbo 5-Year ARM with 2%/5% caps
- Jumbo 7-Year ARM with 2%/5% caps
- FHA 1-Year ARM with 1%/5% caps
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Conforming Balloon Mortgages
A balloon loan offers fixed interest rates below other 30- or 15-year
fixed-rate loans. It is designed to save you thousands of dollars in
monthly payments if you plan on living in your home for a relatively short
time. Payments are based on a conventional 30-year loan payment schedule
with a "balloon" payment due in 5 or 7 years. This means the
unpaid principal balance is due and payable at the end of 5 or 7 years
which is much sooner than a standard conventional 30- or 15-year amortized
loan. In many cases, balloon customers have the option to refinance the
balloon payment before it is due. The Conventional conforming loan maximum
is $322,700 for a single-family residence.
United Bank offers the following Balloon Loan Programs:
- 5-Year Balloon
- 7-Year Balloon
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