LOAN OPTIONS


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FIXED RATE MORTGAGES


A Fixed Rate Mortgage is a type of mortgage that has a fixed interest rate for the entire term of the loan. The benefit of a fixed-rate mortgage is that the homeowner will not have to worry about the loan payment fluctuating with interest rate movements. The monthly mortgage payment will be consistent for the term of the loan. The most popular option at Direct Banc Mortgage is the 30 year fixed rate mortgage.

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Loan Terms Offered  
  • 30 Year Fixed Rate
  • 20 Year Fixed Rate
  • 15 Year Fixed Rate
  • 10 Year Fixed Rate

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FHA LOANS


An FHA Loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for a small down payment with as little as 3% down. The 3% down payment requirement can come from a gift, which is why FHA loans are the most popular option at Direct Banc Mortgage for first time home buyers.

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ADJUSTABLE RATE MORTGAGES


An adjustable rate mortgage is a type of mortgage where the interest rate is paid on the outstanding balance. There is an initial interest rate that is determined and is typically fixed for a period of time. After the fixed period has expired the interest rate paid by the borrower will then be based on a benchmark plus an additional spread which is referred to as an ARM margin. This is a popular options at Direct Banc Mortgage for home buyers that plan on holding on to the property for a shorter period of time due to the initially lower interest rate in the beginning of the loan term.


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FHA 203 (k) – HOME IMPROVEMENT LOANS


A Home Improvement Loan also know as the FHA 203(k) loan is intended if you plan to purchase a fixer-upper or need to make improvements to your existing home such as performing upgrades, repairs, remodel or customize to the needs and wants of the borrower. The U.S. Department of Housing and Urban Development (HUD) insures mortgages through Section 203(k) which covers the purchase or refinancing and rehabilitation of a home that is at least a year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. The value of the property is determined by either (1) the value of the property before rehabilitation plus the cost of rehabilitation, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less.

Contact Direct Banc Mortgage in order to assist you in providing a greater understanding of the requirements of the FHA 203(k) loan.

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VA LOANS


A VA Loan is a mortgage loan program which is 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. The Department of Veteran Affairs establishes the rules for those who may possibly qualify. The Department of Veteran Affairs determine the set of terms for mortgages to be offered and also insure the VA loans against any defaults.

VA Loans are popular at Direct Banc Mortgage with veterans because they offer up to 100% financing on the value of the home. The borrower must provide a certificate of eligibility in order to qualify for a VA loan, which provides the borrowers record of military service.


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INTEREST ONLY LOANS


An Interest Only Loan is a type of financing where the borrower is only required to pay off the interest that arises from the principal that is borrowed. Due to fact that only the interest being paid off, the interest payments remain considerably constant throughout the loan term of the mortgage. It is important to understand that interest only loans do not last forever which the borrower will eventually need to pay off the principal of the loan at some point.

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JUMBO LOANS


A Jumbo Loan is considred a  mortgage with a loan amount which exceeds the conforming loan limits which vary by state and county. (Please contact Direct Banc Mortgage in order to let you know what is the max conforming loan limit in your desired area). A jumbo loan is not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac. Because of this, jumbo loans are securitized by other institutions other than Fannie Mae or Freddie Mac. Due to the fact that these securities have more credit risk than those issued by Fannie Mae or Freddie Mac they trade at a yield premium which cause slightly higher interest rates.


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REVERSE MORTGAGE


A Reverse Mortage is a type of mortgage in which a current homeowner with an age of at least 62 can borrow money against the value of their home. There is no repayment of the mortgage that is required until the borrower either dies or the home is sold.

A reverse mortgage is a popular option at Direct Banc Mortgage because it provides to the borrower income that they can access for their retirement. This option is also popular because the borrower’s credit is not a factor because the borrower does not need to make any payments.

 

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HOME AFFORDABLE REFINANCE PROGRAM (HARP)


The HARP Program is a mortgage-refinancing program which is offered by the Federal Housing Finance Agency to homeowners who own their current homes that are worth less than the outstanding balance on the loan. In order for a borrower to be eligible for the Home Affordable Refinance Program (HARP) their current mortgage must be owned or guaranteed by either Freddie Mac or Fannie Mae that were sold before May 31, 2009.


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California Housing Down Payment Assistance Program (CHDAP)


The California Housing Down Payment Assistance Programs also known as (CHDAP) helps homebuyers to buy a home with no money down. This is done by using a FHA loan and a 3% CHDAP silent second.

The CHDAP silent second has deferred payments until the property is sold or refinanced but is never entirely forgiven.

These are some basic qualifications of the CHDAP loan program
  • Borrowers household income cannot exceed median income for area.
  • Maximum sales prices are limited by FHA Loan limits.
  • Program is for California properties only.
  • Borrower cannot have owed a home in the last three years.
  • Must be able to qualify for a FHA loan.
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GOOD NEIGHBOR NEXT DOOR PROGRAM


The purpose of the Good Neighbor Next Door Loan program is to assist Law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians that contribute to community revitalization while becoming homeowners. The Good Neighbor Next Door Loan allows qualified buyers to receive a No-Closing-Cost mortgage or an incentive of up to 1% for closing costs, taxes or insurance on your new home.

The following may particiapte in the program
  • All participants must be employed full-time by a federal, state, county, municipal government, Indian tribal government, division of local government, or public/private school.
  • Law Enforcement Officers
  • Teachers and School District Employees
  • Firefighters & Emergency Medical Technicians
  • Doctors & Nurses
  • Public Sector Employees (State, City, Local Municipalities)
  • Veterans

Contact Direct Banc Mortgage in order to assist you in providing a greater understanding of the requirements of the Good Neighbor Next Door Loan program.


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Hard Money Loan


A Hard Money Loan is a type of loan for “last resort” or a short-term bridge loan. Hard money loans are backed by the value of the property and not by the borrrowers credit history. For the reason that the property is used as the only protection against default by the borrower, hard money loans have lower loan-to-value (LTV) ratios than traditional loans do.

Hard money loans have higher interest rates than traditional loans due to the high risk of lending involved. Traditional banks do not lend hard money loans which private lenders such as Direct Banc Mortgage see value in this type of potentially risky venture.

Hard money loans at Direct Banc Mortgage are popular in situations where the loan is intended for short-term financing, property flips, and by borrowers with poor credit but substantial equity in their property that wish to stave off foreclosure.

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