Loan Options
Loan Programs We Offer
Explore our diverse mortgage solutions tailored to meet your homeownership and refinancing needs. Whether you're a first-time buyer, refinancing your current mortgage, or looking for specialized loan programs, we have the right options for you.
30-Year Fixed-Rate Mortgage
One of the most traditional options, the 30-year fixed-rate mortgage offers a lengthy term, spreading the payments over three decades. This results in lower monthly payments, making it a popular choice for buyers who plan to stay in their homes long-term and prefer predictable, steady payments.
15-Year Fixed-Rate Mortgage
Shorter in duration, the 15-year fixed-rate mortgage offers higher monthly payments but significantly lower total interest costs over the life of the loan. This option is ideal for borrowers who can afford higher payments and want to pay off their loan quickly, building equity faster.
20-Year Fixed-Rate Mortgage
Falling between the 30-year and 15-year terms, the 20-year fixed-rate mortgage strikes a balance. It provides relatively lower monthly payments compared to a 15-year loan while allowing homeowners to pay off their mortgage faster than a 30-year term. This option appeals to buyers seeking a middle-ground solution.
Biweekly Fixed-Rate Mortgage
Under this arrangement, borrowers make half of the monthly mortgage payment every two weeks, resulting in 26 half-payments or 13 full payments annually. This extra payment per year helps in reducing the principal balance faster, allowing homeowners to save on interest and pay off the loan sooner.
Fixed-Rate Jumbo Mortgage
Jumbo mortgages are loans that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Borrowers seeking high-value homes often opt for fixed-rate jumbo mortgages, which provide the stability of a fixed interest rate despite the loan amount surpassing conventional limits.
A professional may guide clients through the nuances of each type, considering individual financial situations and long-term goals. They assess factors such as the buyer’s income, credit score, and future financial outlook to recommend the most suitable fixed-rate mortgage. They also may help clients understand the implications of down payments, closing costs, and other associated fees, ensuring a comprehensive understanding of the financial commitment involved in purchasing a home.
In conclusion, the expertise of a mortgage professional is invaluable when navigating the array of fixed-rate mortgage options. By providing tailored advice and comprehensive information, these professionals empower homebuyers to make confident decisions, setting them on a path to secure homeownership with a mortgage that aligns with their needs and financial aspirations.
Fixed Rate Mortgage
Fixed Rate Mortgage interest rates are still low!
A Fixed Rate Mortgage offers an interest rate and payments that remain the same for the entire term of the loan. This stability allows for predictable budgeting over the life of the loan.
When seeking a mortgage, understanding the different types of fixed-rate mortgages is crucial. A mortgage professional may provide valuable insights into these options, helping prospective homebuyers make informed decisions.
Fixed-rate mortgages are popular among homebuyers due to their stability and predictability. With a fixed-rate mortgage, the interest rate remains constant throughout the loan term, offering borrowers a consistent monthly payment.
FHA Loan
FHA Loans Offer Low Down Payment Options.
If you’re looking to buy your dream home, but you don’t have enough funds, you aren’t alone. One of the biggest hurdles that most home buyers face is saving up for a sizable down payment, let alone the whole payment on a home. Luckily, there are various loan options you may be able to utilize to kickstart and propel you towards getting the home you so much desire.
However, not every loan option is right for you, especially if you are financially strained with debts or a low credit score. That’s when it may be a good idea to consider a FHA loans, especially if you’re a first-time homebuyer.
What is an FHA Loan?
Did you know that the U.S. Federal Housing Administration (FHA) is the world’s largest residential mortgage insurer? FHA loans are insured by the FHA andenable lenders, like banks, credit unions, and private mortgage companies. to fund home purchase loans with low down payment requirements. FHA home loan borrowers are responsible for paying the premiums associated with that insurance. With an FHA loan, qualified buyers can purchase new homes with as little as a 3.5% down payment.
An FHA home loan allows qualified applicants to buy a home with more flexible and less stringent financial requirements (debt status, credit score, down payment) as compared to conventional loans
FHA Home Loans Requirements
Both first-time homebuyers and experienced homebuyers may be able to qualify for a FHA loan and take advantage of a low down payment option with easier credit qualifying than conventional loans. However, there are several requirements FHA loan applicants must meet. These include:
- The home must be appraised by an FHA-approved appraiser and meet certain guidelines.
- The property must be a primary or principal residence, not a second home or an investment.
- The borrower must occupy the property as the borrower’s primary residence within 60 days of closing the loan.
- A mandatory inspection of the home must occur to ensure it meets all the minimum property standards and regulations.
Here are more specific FHA loan requirements:
FHA Home Loan Down Payments
The minimum FHA loan down payment a borrower is supposed to make is directly linked to one’s credit score. The higher the credit score, the lower the down payment.
An FHA loan requires a minimum down payment of 3.5% of the purchase price for borrowers with a credit of 580 or higher or a 10% down payment for a credit score that’s between 500 and 579. But, it’s worth noting that all the down payment funds must come from FHA-approved sources such as personal savings, gift letters, or investments.
Mortgage Insurance
Individuals are required to pay Mortgage Insurance Premium (MIP) on their FHA loan to insure FHA lenders against losses if they default their loan(s). The MIP is paid for the life of the FHA loan or 11 years if you made a 10% down payment.
Some lenders may require borrowers to pay an upfront mortgage premium, which is normally 1.75% of your loan. FHA borrowers are also required to pay a 0-45% – 1.05% annual mortgage insurance premium of the loan, depending on the length of the mortgage or loan.
FHA Home Loan Limits
How much FHA loan a borrower can get depends on the county of your potential home and location (high or low cost). The U.S. Department of Housing and Urban Development sets the floor and ceiling for one-unit properties in Calendar Year (CY) 2022 are $420,680 and $970,800, respectively. You can find more about your FHA loan limits here or reach out to a HUD-approved housing counselor.
FHA Home Loans Credit Score
Credit score depends on several things, including credit type, the “age” of the credit, credit utilization, and how well one services their bills. A higher credit score gives a debt-to-income ratio (DTI), meaning a borrower can qualify for a higher FHA loan limit.
The circumstances for DTI and monthly mortgage payments vary. For instance, the FHA stipulates that one’s DTI shouldn’t be more than 43% and monthly payments 31% of the monthly gross income in some circumstances.
FHA Income Requirements
While the FHA doesn’t put many salary requirements to qualify for a loan, a borrower must prove that they have a steady employment history. Lenders might ask for W-2s, tax returns, and bank statements for verification purposes.
The Bottom Line on How FHA Home Loans Work
FHA home loans are:
- Government-insured loans that allow borrowers to purchase a home with as low as a 3.5% down payment. Borrower must pay the premiums for this insurance, which is meant to protect the lender.
- Borrowers can also pay their FHA loans without risking pre-payment penalties.
Getting a loan to purchase a home can be frustrating, especially if you don’t know the right procedures to follow. But there’s no need to worry. We are here to help you out. Please don’t hesitate to contact us today to get started.
Who can use the USDA program?
Contrary to its name, the USDA loan is not only available for those in an agricultural setting. The USDA loan is designed to help “low and moderate income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas.”
To use the USDA loan, applicants must meet income requirements and be purchasing a home for their own primary use in an eligible area. Potential homeowners can look up each property’s address to see if it qualifies or talk to a lender about using a USDA loan in their area. The loan can be used for new homes, existing homes, and even homes that need some renovations.
If coming up with a sizable down payment is holding you back from your dreams of home ownership, the USDA loan may be just the answer you are looking for.
How USDA Loans Work
- Purchase your home with as little as 0% down payment.
- 30-, 25-, 20- and 15-year terms are all available with fixed rates.
- 5-year adjustable rate mortgage available.
- No monthly PMI (Private Mortgage Insurance).
- USDA loans are governed by the U.S. Department of Agriculture.
- Pay your mortgage off at any time without pre-payment penalties.
Qualification Requirements
- Household income limits apply and are based on location.
- Only available in certain areas. Talk to a specialist today to see if it is an option for you!
- Buy a home with no money down (primary home).
- Refinance up to 100% of your primary home’s value.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
**Noco Mortgage LLC is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.
USDA LOAN
Flexible Fixed or Adjustable Rate Options
USDA Loans provide flexible Fixed Rate or Adjustable Rate mortgage options, allowing those with less-than-perfect credit to qualify. Buyers can purchase homes with little or no down payment, creating opportunities for future homeowners. Among the lesser-known options is the USDA Single Family Housing Guaranteed Loan Program, which helps buyers secure a mortgage with minimal down payment.
USDA Loans provide flexible choices between Fixed Rate or Adjustable Rate mortgages, and you can qualify with less-than-perfect credit. Little or no down payment options allow more buyers to become homeowners. Today, several programs assist in qualifying for a mortgage with minimal down payment, including the less-discussed USDA Single Family Housing Guaranteed Loan Program.
va loan
Military service members or veterans: Want to buy a home?
Buying a home is a significant decision, whether it's your first or you're downsizing. The process can be overwhelming, especially for military veterans or active duty members. To honor your service, the government offers several programs to make homeownership more accessible. One key option is the VA Home Loan.
A VA home loan is a mortgage backed by the Department of Veterans Affairs for servicemembers. The VA guarantees these loans, which private lenders provide to qualifying veterans and military families.
Established in 1944, the VA Loan helps service members purchase homes without a down payment or excellent credit. This program has enabled over 23 million veterans and their families to buy or refinance homes.
VA Home Loan Types
There are a number of different types of VA home loans (a VA direct loan and 3 VA-backed loans) available to eligible borrowers:
Native American Direct Loan (NADL) Program
First, let’s look at the NADL program. NADL loans are available to eligible Native American veterans who hope to purchase, construct, or improve a home on Federal Trust land. These loans are provided through the VA, but they’re originated, processed, and closed by private lenders.
VA-Backed Purchase Loan
A VA-backed purchase loan is a loan offered by a financial institution or mortgage company. With your Certificate of Eligibility or COE, in hand, along with your approved credit and income, the lender verifies your eligibility for the VA mortgage.
There is no down payment required for a VA-backed purchase loan. Additionally, the closing costs are generally lower and there are generally better terms and interest rates than those of a conventional loan. Those who are on a VA-backed purchase loan do not need to pay monthly private mortgage insurance (PMI) premiums, as is the case with a conventional loan when the borrower puts down less than 20%.
Cash-Out Refinance Loan
A cash-out refinance loan allows qualified borrowers to take advantage of lower interest rates, and also receive cash for equity in their home. Borrowers can use the cash to make home improvements, pay for college tuition, consolidate debt, or for any other purpose. You can apply through a VA-approved lender to see if you meet the requirements for a cash-out refinance loan.
A Cash-Out Refinance Loan can be compared to a Home Equity Line of Credit (HELOC), as they both allow you to use the equity in your home for a variety of purposes. The main difference is that with a HELOC, if you have an existing mortgage, a home equity loan will be an additional payment that you will have to make, while a Cash-Out Refinance Loan will replace your existing mortgage. With a cash-out refinance loan, you receive a lump sum of cash from the equity in your home, which you can use all at once, and you have to pay back the loan over time.
The Interest Rate Reduction Refinance Loan (IRRRL)
The Interest Rate Reduction Refinance Loan (IRRRL) allows qualified applicants to refinance their existing mortgage into a new VA loan with a lower interest rate. One of the biggest advantages of an IRRRL is that an applicant does not need to have their home appraised to qualify, and there is no income or employment verification required. To be eligible for an IRRRL, you must currently have a VA loan that has been open for at least 210 days, and you must also be current on your mortgage payments.
For homeowners whose first mortgage had a variable interest rate, an IRRRL may be able to provide better stability by locking in a lower, fixed interest rate. An IRRRL has specific requirements, such as never having been delinquent (30 days past due) on your mortgage on any payment in the last 12 months. This loan is specifically for veterans and their families who want to refinance their homes to take advantage of a lower interest rate.
TPotential Advantages of Obtaining a VA Home Loan
There are many potential advantages to obtaining a VA home loan, including the following:
- No down payment required
- No private mortgage insurance (PMI) required
- Competitive interest rates
- Ability to finance up to 100% of the purchase price
- Closing costs can be included in the loan
- There is no prepayment penalty
- You can use your VA eligibility to purchase a multi-unit property
VA Home Loan Eligibility Requirements
To be eligible for a VA loan, you must meet the following criteria:
- Serve or have served in the U.S. Armed Forces, including the National Guard and Reserves
- Obtain a Certificate of Eligibility (COE) from the VA
- Meet the service requirements outlined by the VA (Served 90 consecutive days of active service during wartime, 181 days during peacetime, or 6 years in the National Guard or Reserves)
- Be an unmarried surviving spouse of a veteran who died in service or as a result of a service-connected disability
Are You Eligible for a VA Home Loan?
Now that you know about VA Home Loans, it may be a great time to take action and find out if you are eligible. The first step is to obtain a Certificate of Eligibility (COE) from the VA. Once you have obtained aCOE, you can then begin the process of applying for a VA home loan. To be approved for a VA loan to purchase a home, you will not only need to make sure you have your Certificate of Eligibility but also the following:
- Employment history from the past 2 years
- Individual income tax returns from the past 2 years
- Banking accounts
- Credit history
VA home loans are a great way for veterans and their families to finance the purchase of a new home. With no down payment required and competitive interest rates, VA home loans are an attractive option for those who are eligible. If you think you might be eligible for a VA home loan, reach out to us today.
When you work with us, you will get a partner that is committed to helping you find the right home loan for your unique situation. We have a team of experienced mortgage loan officers who can answer any questions you may have about VA home loans and help you through the application process.
Streamlined Refinance (IRRRL)
Also known as the Interest Rate Reduction Refinance Loan, or IRRRL, the Streamlined Refinance loan is easy to complete and often requires no money from the homeowner. This type of refinance simply adjusts the terms of financing and is great when interest rates have lowered since you purchased your home.
Cash-Out Refinance
A Cash-Out Refinance is exactly what it sounds like—you refinance to pull cash out of your home once you have paid down the loan and have equity. This can be a great option if you want cash to pay off other debts, pay for a large purchase, or do home improvements.
You can apply for a cash-out refinance for a VA loan, USDA loan, FHA loan, or conventional loan. The only limitations are placed by the lender on how much cash you can pull out and how much equity they require to remain in the property.
Keep in mind that refinancing may mean more interest costs over the life of the loan, so talk to your lender about all of your options before deciding on a refinance. If you are early into homeownership and interest rates have gone down, refinancing can be a great way to lower your monthly payments and even save money over the long-term
VA Loan Refinance Option
Enhance Your Loan Terms Without the Hassle of a Home Search.
You own the home but seek better financing options to maximize your investment. Factors such as declining market rates create opportunities for a more favorable mortgage. Your improved financial situation, possibly from a raise or reduced debts, may help you qualify for better terms. Additionally, if your home's value has appreciated, you can leverage this for advantageous loan options. These circumstances make it the perfect time to explore new financing solutions.
Heloc home loan
Unlock your home equity with a HELOC.
A HELOC (Home Equity Line of Credit) is a type of loan that allows homeowners to leverage the equity they have in their homes. This loan is a revolving line of credit that operates much like a credit card, with a predetermined credit limit and variable interest rate. The homeowner can borrow against this credit line as needed, using their home as collateral.
What is a Heloc Home Loan?
HELOCs are especially useful for homeowners looking to fund home improvements, consolidate debt, or cover other major expenses. With this loan, homeowners have access to funds as they need them and only pay interest on the amount borrowed. Additionally, the interest paid on a HELOC may be tax-deductible. However, borrowers should weigh the potential risks to carefully consider the potential risks, such as variable interest rates and potential closing costs, before obtaining a HELOC. We always recommend consulting a legal advisor or financial professional to determine if a HELOC is the right option for individual circumstances.
Benefits of a Heloc Home Loan
A Heloc Home Loan offers a range of benefits for homeowners looking for flexible access to credit. Unlike a traditional home equity loan, a Heloc loan provides a line of credit that can be used for a variety of purposes. One of the main benefits is emergency access to credit. In times of unexpected financial need, having a Heloc can provide quick access to funds, providing peace of mind and financial stability.
Another benefit of a Heloc Home Loan is the ability to use the funds for different purposes. Whether you need to purchase a vehicle, pay for education expenses, fund home renovations, or consolidate bills, a Heloc loan can provide the necessary funds to address these significant expenses.
Additionally, a Heloc loan offers more flexibility than a home equity loan. With a home equity loan, you receive a lump sum with a fixed interest rate. However, with a Heloc, you have a line of credit with a variable interest rate. This allows you to borrow and repay as needed, giving you more control over your borrowing and repayment strategy.
What is a Conventional Loan?
A conventional loan is a mortgage that is not backed by a government agency such as the FHA, VA, or USDA. Instead, these loans are issued by private lenders and follow guidelines established by Fannie Mae and Freddie Mac. Conventional loans can be either conforming (meeting loan limits set by these entities) or non-conforming (exceeding those limits, commonly referred to as jumbo loans). This type of financing is widely used for home purchases and refinancing.
Basic Requirements for a Conventional Loan?
To be eligible for a conventional loan, borrowers typically need to meet the following criteria:
- Credit Score: A minimum of 620 is usually required, but higher scores improve your approval odds and may result in better interest rates.
- Down Payment: Borrowers may qualify with as little as 3% down, though putting down at least 20% helps avoid additional costs like private mortgage insurance (PMI).
- Debt-to-Income Ratio (DTI): Ideally, lenders prefer a DTI ratio of 43% or lower, though some lenders may allow up to 50% depending on other financial factors.
- Employment & Income Stability: Proof of consistent income and steady employment is essential to demonstrate the ability to make loan payments.
Conventional loan
Conventional loans favor strong credit borrowers.
Conventional loans are ideal for borrowers with strong credit histories and the ability to make a substantial down payment. These loans are not insured by the government, allowing for greater flexibility in terms and conditions. They often feature competitive interest rates and can be used for a variety of property types.
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Jillian Peterson
www.nocoloans.com
jill@nocoloans.com
NMLS# 2061845
NOCO MORTGAGE
NMLS#2662178
Suite 2B 1505 North Lincoln Avenue, Loveland, Colorado 80538, United States
Noco Mortgage, LLC is a boutique mortgage brokerage located in the heart of Loveland, Colorado. With five generations of experience in the local community, we are dedicated to providing personalized and expert mortgage solutions to homebuyers and homeowners throughout the region.
