Types of Loans

We offer a number of different loan programs to meet our borrower’s needs. Whether this is your first home purchase or you are a seasoned buyer we can help. We are a direct lender with Fannie Mae, Freddie Mac, Ginnie Mae & Penny Mac. Plus our customers benefit from having Processing, Underwriting, and Funding at one location. You will love working with a TRUE in house lender!

Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you’ll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that great.

FHA
FHA-Government insured loan programs available at low fixed rates, requiring very little cash to close. Minimizing the amount of cash needed at closing by utilizing gifted funds from a relative or employer, allowable lender and seller credits, and government grants.

  • Low down and closing costs
  • Easier credit requirements
  • Co-signer allowed

Annual ARM
This loan has a rate that is recalculated once a year.

VA
VA-A loan program created for men and women who have served our country in any of the 4 branches of the military. Veterans are eligible for a VA loan if they have served on active duty and have an honorable discharge, after a minimum of 90 days of service during wartime, or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7th, 1980 or was an officer and began service after October 16th, 1981. There is a six-year requirement for National Guards and reservists with certain criteria.

  • No down payment and low closing costs
  • Competitive interest rate
  • No monthly mortgage insurance premiums
  • VA loans may be assumed by a qualified veteran

Manufactured Housing
We have extensive experience in the purchase and refinancing of your manufactured homes. Eligible financing requires the home be a double wide or larger that was built after June 15th 1976.

  • Credit scores of 660 or above
  • Low down payments

2/1 Buy Down Mortgage
The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.

Adjustable Rate Mortgages (ARM)
When it comes to ARMs there’s a basic rule to remember…the longer you ask the lender to charge you a specific rate, the more expensive the loan.

Monthly ARM
With this loan, the interest rate is recalculated every month. Compared to other options, the rate is usually lower on this ARM because the lender is only committing to a rate for a month at a time, so his vulnerability is significantly reduced.

USDA
A government insured loan that allows for 100% financing in rural areas.

  • No down payment
  • Low monthly mortgage insurance
  • Owner occupied property
  • Must be located in a rural area that is approved by USDA
  • Income limits apply

Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a “5/1 loan” has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

Reverse Mortgage
You worked hard for your home. Now, your home can return the favor through a reverse mortgage program. This service, typically offered by reverse mortgage brokers, enables you to get the funds you need to achieve short-term financial goals, have peace of mind during your golden years, and live a more comfortable life.

A reverse mortgage, also called a Home Equity Conversion Mortgage (HECM), allows you to use the equity of your home as cash. Reverse mortgage programs provide financial support for low-income seniors. These homeowners can use the funds from the program to pay debts and taxes, home repairs or renovations, medical bills, and everyday expenses.

The following features are present in a reverse mortgage:

  • Various Options to Receive Money – You can obtain the funds in multiple ways, namely as a lump sum, a term payment, a tenure payment, or a line of credit.
  • Tax-Free Funds – Money coming from a reverse mortgage is typically tax-free.
  • Non-Recourse Loan – A reverse mortgage is a non-recourse loan, which means your heirs will not be liable to sell the house if it goes for less than the balance of the loan.

HECM Disclaimer
No government agencies and departments have endorsed, sponsored, reviewed, or approved the content in this marketing advertisement.
Oregon HECM Disclaimer

  • When the reverse mortgage contract term ends, some or all of the equity in the reverse mortgage property will no longer belong to the borrower. The borrower, therefore, must pay back the loan. Additionally, he/she may need to repay the loan from other proceeds or sell the home.
  • The lender will charge the following for the reverse mortgage: servicing fees, an origination fee, closing costs, and a mortgage insurance premium. The lender may include any or all of these costs to the reverse mortgage loan balance.
  • The loan balance grows over time, and the lender charges interest on the outstanding balance.
  • The borrower retains the property title, which is the subject of the reverse mortgage until he/she transfers or sells the property.
  • The borrower is responsible for home maintenance, property taxes, and hazard insurance. Failure to pay these costs may subject the property to a tax lien, possible foreclosure, or other encumbrances.
  • Until the borrower makes a full or partial repayment, the interest on the reverse mortgage is not tax-deductible.

On top of these disclaimers, we would like to remind individuals interested in getting a reverse mortgage to speak with an expert regarding possible risks and advantages. The FHA requires applicants to join an independent counseling session to make sure that they sufficiently understand the process behind the reverse mortgage program and confirm if the program is suitable for their needs.
Once you have carefully weighed your options, get in touch with Primary Residential Mortgage, Inc.