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Home Mortgages For Every
Need!
Whether you're planning to buy a house, refinance an existing mortgage loan,
renovate your home, or build a custom home, First Heritage Mortgage can meet
all of your needs. We offer a wide range of financing options for almost any
mortgage need. On this Web site, the specific types of loans available through
First Heritage Mortgage are described within each of four categories:
Once you have reviewed this information,
you may have questions regarding one or more of the loans we have described.
We encourage you to contact one of our experienced loan officers.
Any of our loan officers will be able to help you select the loan program that
is best suited for your particular needs.
CONVENTIONAL
FINANCING
First
& Second Mortgage Loans
When you think of conventional mortgage loans, what usually
springs to mind are the traditional
15-year and
30-year, fixed-rate first mortgages that homebuyers use to purchase a home. At First Heritage Mortgage we offer these traditional loans in addition
to several other flexible options for home purchase and refinance:
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80/10/10, 80/15/5, and 80/20 loans to avoid PMI
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Adjustable Rate Mortgages (ARM’s)
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Interest Only Loans (Fixed Rate and ARM’s)
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Buydowns
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100% Financing
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103% Financing
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Option ARM’s
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Low Docs
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No Docs
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Government-sponsored
loans - FHA and VA
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Home Equity Loans (Fixed and Interest Only) and Variable-Rate Home Equity Lines
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VHDA Loans (Virginia Housing Development Authority)
First Mortgages
Fixed-Rate
Mortgages - The primary advantage of a fixed-rate loan
is its stability. Once you have locked in your rate, it stays the same, no
matter how much interest rates rise or fall. Although the payment on a 30-year
mortgage tends to be lower, the payment for a 15-year mortgage is usually only
slightly higher. Many homeowners choose a 15-year term to lower the overall
cost of interest expense and they can expect to save tens of thousands of
dollars in interest. The 15-year term also enables the homeowner to build up
equity much more quickly than with a 30-year term.
Adjustable Rate Mortgages (ARMS) -
An ARM usually features a low initial rate which may be adjusted up or down
periodically, based upon the terms you select. FIRST HERITAGE MORTGAGE offers a
number of flexible terms, including 1 -year, 3/1, 5/1, 7/1 and 10/1 options.
ARMs can be particularly helpful to first-time homebuyers who expect their
income to increase over time and wish to buy more house for their money. ARMs
are also useful to those individuals who expect to own a house only for a
limited time, before relocating or moving up to a larger home. Either way,
should the homeowner choose to do so, an ARM can be refinanced to lock in a
fixed rate at any time.
Interest Only Loans - Interest
Only loans are available on both Fixed Rate Loans and ARM’s.
The Interest Only ARM’s are available on 3/1, 5/1, 7/1 and 10/1 ARMs. The
borrower is only obligated to pay the interest for the fixed portion of the
loan. At the end of this period, the full payment is then required. This
gives the borrower the advantage of a lower monthly payment and the flexibility
to pay down principal at any time.
Buydowns - In certain situations, an individual (either a buyer, seller or
builder) will give money to the lender in order to lower the buyer’s interest
rate and, therefore, lower their monthly mortgage payment, either for a
specific period or for the life of a loan, The offset for this type of loan,
known as a buydown, can be particularly advantageous to first-time homebuyers.
100% Financing - Most mortgages
do not cover all of the purchase price, and the borrower must come up with the
remaining amount as a down payment. FIRST HERITAGE MORTGAGE offers a 100%
financing option to qualified buyers up to a maximum loan amount of $500,000
with no PMI.
103% Financing - In addition to
100% financing, FIRST HERITAGE MORTGAGE also offers a loan which exceeds the
actual purchase price of the home by 3% to help cover closing costs.
Option ARM Loans - These are “cash flow”
ARM’s that have a minimum payment based on a very low start rate. The Index that
controls the Option ARM can be either the Libor Index, the MTA index or the COFI Index.
The Option ARM is one of the most misunderstood programs available in the market today.
It is a unique ARM product that solves many cash flow issues for today’s homebuyers and owners.
The COFI -The 11th District Cost of Funds Indexed loan program (C.O.F.I.) is widely
recognized as one of the slowest moving indexes available in the market.
This is due to the fact that the index is based on the Average interest rate Banks
pay their depositors on short-term savings accounts. Remember, banks don’t want to
pay you a high rate of interest on your savings. The Option ARM loan allows you to
make many different payment levels each month. This includes: Full Principle & Interest payment,
Interest Only, or a Minimum payment (which is less than the Interest only payment).
If you only make the Minimum payment you will incur “Negative Amortization” (your loan amount increases).
Make sure you speak with a knowledgeable loan officer regarding the specifics of this type program and
how it can benefit you.
Low Doc Loans - Low doc stands for low
documentation. These special loans aid borrowers who qualify to apply for a
loan without having to document certain financial information.
No Doc Loans - In some cases, a highly qualified borrower can apply for a loan
that requires no documentation of their financial picture. The general rule of
thumb is, the less information that is documented the higher the interest rate
the lender must charge for the loan. These types of loans are often referred to
as “loans outside the box”.
Community Lending Programs -
Owning a home is important, so FIRST HERITAGE MORTGAGE participates in several
government-sponsored programs to help as many people as possible to become
homeowners. With these loans, qualifying is much easier and down payments can
be as low as 5%.
Second
Mortgage Loans
80/10/10
and 80/15/5 loans
- Loans With No PMI - Private mortgage insurance (PMI) is a type of insurance
that protects the lender should a borrower default. Traditionally, PMI has been
required when the borrower’s down payment or equity in a home is less than 20
%. Generally, PMI is financed as part of the mortgage, so the borrower assumes
the cost. FIRST HERITAGE MORTGAGE offers homebuyers a way to avoid PMI, even
though their down payment may be only 5%, 10% or 15%. Through the use of a
second trust, a buyer can finance part of their down payment and avoid paying
PMI.
Home Equity Line of Credit - This
revolving line of credit works similarly to its fixed-rate counterpart and
offers the same advantages. The interest rate is, however, variable and is tied
to the Prime Rate. With the FIRST HERITAGE MORTGAGE home equity line of credit,
you have a ready line to access for purchases and expenses; which means you
borrow only what you need when you need it. And as you repay your outstanding
balance, your line is replenished.
Home Equity Loans - With this
fixed-rate loan, you can utilize the equity you have built up in your home. The
amount you can borrow is generally determined by how much equity (your share of
ownership) you have in your house, and all loan proceeds are disbursed at
settlement. Because this loan is secured by your home, the interest rate is
typically much lower than for other types of consumer loans. As with first
mortgages, the interest expense on a home equity loan may be tax-deductible
(consult your tax advisor for details). Moreover, home equity loans are not
subject to PMI. Considering the low cost and possible tax advantages, a home
equity loan can be a great way to borrow.
FHA FINANCING
Federal
Housing Administration (FHA) Loans
As part of the U.S. Department of Housing and Urban Development (HUD), the FHA
is primarily responsible for insuring residential mortgage loans made by
qualified lenders. FHA loans are quite popular because the income and credit
requirements are more lenient than those of conventional loans. Though commonly
referred to as "FHA loans," the loans are not granted by the FHA, but the FHA
insures the lender against loss. FHA loans are also assumable and require low
down payments. FHA offers a fixed rate and a 1/1 adjustable rate mortgage. Both
programs require only a 3% down payment. The current FHA maximum loan in the
Washington Metropolitan area is $290,319.
VA FINANCING
Veterans
Administration Loans
As an independent agency of the U.S. Government, the Veterans Administration
(VA) is responsible for the administration of various programs which benefit
U.S. serviceman. Although the VA itself doesn't make mortgage loans, it does
guarantee the repayment of loans made to veterans. VA-guaranteed loans usually
feature flexible terms, low down payments and less restrictive qualifying
requirements, making it easier for veterans to purchase homes. VA loans are
also assumable.
CONSTRUCTION/PERMANENT FINANCING
The Loan For Home
Building
Generally, when you build a new house, you must obtain two separate loans: a
temporary one for the construction phase and a permanent one for your final
mortgage. However, at First Heritage Mortgage, we simplify the process. Our
all-in-one Construction/Permanent Loan is a single loan that covers the entire
process. So, you'll complete your paperwork only once and there will be only
one closing, saving you a substantial amount in closing costs and recording
fees. First Heritage Mortgage is one of the few lenders in Northern Virginia to
offer this innovative program.
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