Loan
Programs
 There
is a wide range of home loan
options available to you. Some
offer payments that are fixed for
the life of the mortgage (fixed
rate loans), while others feature
smaller initial payments that
could fluctuate with changes in
the interest rate (adjustable
rate loans). The right choice for
you depends upon your individual
financial lifestyle. The home
loan experts here have the
experience to help you understand
the best options for you based on
your current situation. Call one
of them today and schedule an
appointment to learn about which
choice might be right for you.
The 1% PROGRAM
[Note]:
This
program is ONLY AVAILABLE From The METZLER
Mortgage Group - and NO Other lender ANYWHERE in
the Country!
The 1% down program is a loan
product that provides financing for a one-unit
primary residence up to almost 100% of the
purchase price. The loan allows for
reduced documentation,
flexibility in underwriting,
and expanded debt to income ratios.
There are No location restriction. You can buy
any home in any location in
Minnesota, Wisconsin, or Florida.
There are NO grants to repay, NO length of stay
requirements, and NO home buyer education
classes to take. The buyers must have at least OK credit to be eligible
for this loan product. Severely bruised credit
is not allowed (we have other programs for those
people). You DO NOT need to be a
first-time buyer.
This loan
is VERY popular because if
you have looked at other first-time buyer, or
low down payment programs, you quickly learned
most come loaded with hidden restrictions,
terms, and conditions that make the loans less
than desirable, or you unable to qualify!
Not
ours...
This program
actually only
requires $500 down, and allows the buyer the
ability to borrow up to almost 100%, and even allows
you to
roll in all or most of their closing costs with
the loan. This loan is significantly better than
almost all of the "creative advertising" Zero
Down Loans.
FHA -
Federal Housing Administration
FHA loans, also
referred to as
“government” mortgages,
are insured by the Federal
Housing Administration. The
purpose of the FHA is to make
housing more affordable for more
homebuyers. To do this, they
offer more lenient loan
qualifications in comparison to a
conventional loan. The lower down
payment and relaxed qualifying
guidelines combine to make FHA
loans ideal for first-time and
low-to-moderate income
homebuyers. Until recently, this was really
the only low down payment loan. It is probably
how your parent bought their first home! The
minimum out-of-pocket cost to a buyer is
only 3% - and the entire 3% can be a gift!
VA (Veteran
Administration)
VA loans, also
referred to as
“government” mortgages,
are guaranteed by the Federal
Government. These loans are
available for the benefit of
eligible veterans of the armed
services, active-duty personnel,
reservists, and their spouses. VA
loans allow for some of the most
relaxed qualifying requirements
of any loan, including no down
payment for qualified borrowers
and stable and predictable fixed
interest rates. Eligible
borrowers may qualify for
mortgage payments up to 41% of
their income, plus, it’s
possible to obtain a VA loan with
close to zero out-of-pocket cost. The current
maximum VA loan is $359,650.
Combo
(80-10-10) (80/15/5) (80/20)
The Combo loan comes in many
versions, but typically the
first mortgage is 80% of the
purchase price, the second
mortgage is 10 of 15% of the purchase
price, and the remaining 5 or 10% is
the borrower’s down payment.
It is typically used to eliminate private mortgage
insurance and may enables homebuyers
to reduce their monthly payments.
Be careful about combo loans, as they sometimes
appear to offer better deals in the short-term,
but may cost you significantly more in the
long-term. The Combo loan may also be used
as a “jumbo cruncher”
to reduce the monthly payments
for borrowers whose loan amounts
exceed $359,650, as Jumbo loans have slightly
higher interest rates.
Flexible
97 (purchase product
only)
The Flexible 97 is a product
that allows for financing up to 97% of the
purchase price. The product allows for reduced
documentation, flexibility in underwriting,
expanded debt to income ratios, and flexibility
in the source of down payment. Down payments can
come from the borrower’s own funds, a gift from
a family member, a grant from a non-profit,
employer or governmental agency, a secured loan,
an unsecured personal loan from a relative,
municipality or non-profit organization and
employer-assistant housing funds. Homebuyers,
including those purchasing their first home, may
often choose the Flexible 97 loan for its low
down payment. Homebuyers must have excellent
credit to be eligible for this loan product.
Standard FIXED RATE
LOANS
With fixed rate
loans, you’ll always know
what to expect with a
predictable, non-variable
mortgage payment. Your monthly
principal and interest payments
never change because your
interest rate stays the same for
the duration of the loan. While
fixed rate loans generally have
higher interest rates than
adjustable rate loans, they do
offer predictability that many
homebuyers, especially those on a
fixed or modestly increasing
income, find comforting. Fixed
rate loans also offer the option
to refinance if interest rates
decrease and may be the right
loan for you if you plan to be in
your home for a while.
CONVENTIONAL
LOANS
A conventional
loan is a fixed rate loan product
that provides financing for
borrowers who are purchasing or
refinancing properties. The
current maximum amount to borrow
for conventional loans is
$359,650. This is the most common loan
available. It is used by just about everyone!
JUMBO LOANS
A jumbo loan is a
fixed rate loan product that
provides financing for borrowers
who are purchasing or refinancing
properties that require larger
loan amounts than allowed with a
conventional loan (loans amounts
over $359,650).
Balloons
Balloons are
short-term loans (5 or 7 years)
with monthly payments that are
amortized over 30 years.
Generally, the interest rate is
lower than the standard 30-year
fixed. At the end of the balloon
term, the unpaid principal
balance of the loan becomes due
and payable. An extension option
is offered to the borrower at the
end of the balloon term, however,
it is not automatic or
guaranteed. The borrower must
request the extension in writing
and must meet certain qualifying
criteria in order to take
advantage of the option. Balloon
loans may appeal to relocation
families or homebuyers who plan
to live in their homes for a
short period of time.
Adjustable
Rate Mortgages
Adjustable Rate
Mortgages (ARMs) are loans that
generally provide an initial rate
that is lower than the standard
fixed rate loan. After an initial
fixed rate period (1, 3 or 5
years), the interest rate can
adjust annually based on the
movement of a specific index plus
a margin not to exceed 2 percent
every year and 6 percent over the
life of the loan. Your monthly
payment changes as the rate
changes annually. To the
borrower’s advantage, the
initial payment of an ARM is
usually low, permitting the
purchase of a home that otherwise
may be unaffordable with a fixed
rate mortgage, although there is
a risk of higher payments later.
An ARM may be right for you if
you need the lowest possible
initial payments or if you
don’t plan to keep your home
for more than a few years. Jumbo
loans are available at adjustable
rates.
Specialty Loans
Specialty loans cover just about everything.
We sometimes call these "make sense" loans.
If it makes sense, we do it. Some common forms
of these loans are: "bruised credit", including
foreclosure and bankruptcy. The
"self-employed" who write off to much on their
tax returns. "Stated income" loans for those who
have trouble proving their real income, like a
waiter or waitress, who may have a lot of
'tipped' income.
Swing/Bridge
Loans
A Swing or Bridge
Loan is a form of second mortgage
that is collateralized by the
borrower’s present home,
which is usually for sale. This
type of loan provides funds for
the borrower to close on a new
home before selling his/her
existing home. Bridge loans are
acceptable as long as 1) the
purchaser has the ability to
carry the payment on the new
home, the payment on other
obligations, the payment on the
current home and the payment on
the bridge loan, and 2) the new
property is [generally] not used
to secure the Bridge Loan.
Swing/Bridge Loans can be either
fixed or adjustable rate loans.
Construction Loans
We offer
construction loans to finance the
construction of your new home. A
construction loan allows you to
borrow money to pay your builder
as needed for the duration of the
construction term (typically 4 to
6 months). Interest accrues only
on the outstanding balance and
can be paid monthly or at
maturity.
In order to
protect you, the borrower, as
well as the lender from any
potential title problems, it is
important that you arrange your
construction financing before you
begin construction. It is also
customary that you obtain
approval for a plan to repay your
construction loan, such as
long-term financing or the sale
of a home, before you begin
construction.
We can help you
with both construction and
long-term financing , we can save
you time and money and provide
you with a smooth transition
between the two when your home is
complete.
- Complete just one
application.
- Save on closing costs.
- Relax knowing that your
home’s financing has
been pre-arranged to your
satisfaction before
construction begins.
- Enjoy added tax benefits
and cost savings by
carrying the construction
loan yourself. (Consult
your tax advisor.)
Contact our home loan
expert at (651) 552-3692 to help you develop a
financing plan customized to fit
your individual situation.
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