Types of Loan Products

When needing a loan, it can be overwhelming. Ryan Mortgage Company will help you figure out what loan works best for you. They are here to make sure YOU understand how it all works.

FHA

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults.

Conventional

A conventional loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). It is typically fixed in its terms and rate.

     Examples of Conventional mortgages are as follows:

 

  •     Conforming loans

  •     Non-conforming loans

  •     Jumbo loans

  •     Portfolio loans

  •     Sub-prime loans

VA

You must have satisfactory credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. We are able to help you get your COE. The home must be for your own personal occupancy. 

VA home loans can be used to:

  • Buy a home, a condominium unit in a VA-approved project

  • Build a home

  • Simultaneously purchase and improve a home

  • Improve a home by installing energy-related features or making energy efficient improvements

  • Buy a manufactured home and/or lot

  • To refinance an existing VA-guaranteed or direct loan for the purpose of a lower interest rate

  • To refinance an existing mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the veteran as a home

USDA 100% Financing (Rural Housing)

A USDA home loan is a zero down payment mortgage for eligible rural and suburban home-buyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.


The USDA guarantees a mortgage issued by a participating local lender — similar to an FHA loan and VA-backed loans — allowing you to get low mortgage interest rates, even without a down payment. If you put little or no money down, you will have to pay a mortgage insurance premium, though.

Jumbo

A jumbo loan is one way to buy a high-priced or luxury home. If you have a lower debt-to-income ratio and a higher credit score, a jumbo loan may be right for you. The limit on conforming loans is $453,100 in most areas of the country, but jumbo mortgages can exceed these limits.

Adjustable Rate Mortgage

Typically, ARMs are expressed as two numbers. In most cases, the first number indicates the length of time the fixed-rate is applied to the loan, but there is no set formula defining what the second number indicates. For example, a 2/28 ARM and a 3/27 ARM feature a fixed rate for two or three years, respectively, followed by a floating rate for the remaining 28 or 27 years. In contrast, a 5/1 ARM boasts a fixed rate for five years, followed by a variable rate that adjusts every year (indicated by the one). Similarly, a 5/5 ARM starts with a fixed rate for five years and then adjusts every five years. Contrary to that formula, a 5/6 ARM has a fixed rate for five years and then adjusts every six months.

Refinance

Reverse

The type of loan a borrower decides on is dependent on the needs of the borrower. The most common type of refinancing is called the rate-and-term. This occurs when the original loan is paid and replaced with a new loan requiring lower interest payments. Another type of refinancing is the cash-out. Cash-outs are common when the underlying asset collateralizingly the loan increases in value. The transaction involves withdrawing the value or equity in the asset in exchange for a higher amount. In other words, when an asset increases in value on paper, you can gain access to that value with a loan rather than selling it. This option increases the total loan amount but gives the borrower access to cash immediately while still maintaining ownership of the asset.

A Reverse Mortgage is a loan for seniors age 62 and older.  HECM reverse mortgage loans are insured by the federal housing administration (FHA)1 and allow home owners to convert their home equity into cash with no monthly mortgage payments.

Home Ready

Ideal Home Ready Borrowers:
  • Have low to moderate income

  • Are first-time or repeat buyers

  • Have limited cash for down payment

  • Have a credit score ≥ 620; borrowers with credit scores of ≥ 680 may even get better pricing

  • Have supplemental boarder or rental  income

  • Are looking to purchase or refinance

VS

Home Possible

Ideal Home Possible Borrowers:
  •  First-time home-buyers, move-up borrowers, and retirees.

  • Families in under-served areas.

  • Very low; low; and moderate  income borrowers.

  • Purchase and no cash out refinancing.

  • Maximum 97% LTV and 105% *TLTV ratios for Home Possible Advantage

  • Mortgage insurance options.

  • Loan Product AdvisorSM or manual underwriting.

  • No reserves required for 1-unit properties.

  • Maximum credit fee in price of 1.5%.

*Combined loan to value ratio (CLTV) is the proportion of loans (secured by a property) in relation to its value. ... Combined loan to value is an amount in addition to the Loan to Value(LTV), which simply represents the first position mortgage or loan as a percentage of the property's value.

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373 SOUTH 100 WEST PAYSON UT, 84651

NMLS #290308