Loan Programs - Pros & Cons
Cherry Creek Mortgage is a DIRECT SELLER to Fannie Mae, Freddie Mac and Ginnie Mae. As a result we are not subject to the overlays imposed by many other lending institutions. Having both the direct seller as well as investor direct delivery options provides our clients and business partners with a variety of home loan programs to choose from, here are a few of our most popular loan options.
CONVENTIONAL LOANS
Conventional loans are not guaranteed by a government agency and follow guidelines of two Government sponsored enterprises, Fannie Mae & Freddie Mac.
PROS
- Lower monthly mortgage insurance, making the overall payment lower.
- No mortgage insurance needed if 20% down.
- When mortgage insurance needed, it ends when the equity in the property is greater than 20%.
- Property standards not as picky.
- Less paperwork involved.
CONS
- Holds buyer to a higher standard in terms of credit, savings and debt-to-income.
- Interest rate and monthly mortgage insurance may be higher with lower credit scores
FHA LOANS
FHA loans are insured by the Federal Housing Administration (part of HUD).
PROS
- More flexibility with bruised or newer credit, limited savings or tighter debt-to-income.
- Down payment can be gifted from a family member.
- Interest rate may be lower than some conventional options.
CONS
- Monthly mortgage insurance can be higher and in effect for the life of the loan if only the minimum down payment is made.
- FHA charges a 1.75% upfront fee (rolled into the loan balance).
- The property needs to meet a higher standard than needed for conventional loans.
- More paperwork is involved
USDA LOANS
USDA loans are guaranteed by the USDA for homes in areas deemed ‘rural.’
PROS
- No down payment needed.
- Monthly mortgage insurance is less expensive, making the overall payment lower.
- In some situations, the cost for repairs can be rolled into the loan.
- Interest rate is often lower than for a conventional loan.
CONS
- Only homes in eligible areas can be financed with USDA mortgages.
- USDA needs to review all files which often delays the closing process.
- The home needs to meet minimum property standards set by USDA that are more stringent than some other loan types.
VETERANS ASSISTANCE LOANS
VA loans are guaranteed by the Department of Veteran Affairs for eligible Veterans.
PROS
- Typically no down payment needed.
- No monthly mortgage insurance, loans do require VA Funding Fee but which can be financed into the loan.
- Interest rate may be lower than some conventional options.
CONS
- Property needs to meet a slightly higher standard.
- Seller may be required to pay some buyer related fees.
- More paperwork is involved.
Home Buyer Tips
- 2 Myths That May Be Holding You Back From Buying
- 5 Reasons Home Ownership is a Good Financial Investment
- Do’s and Don’ts During The Loan Process
- FHA 90 Day Property Flip Waiver
- Getting a Mortgage: Why So Much Paperwork?
- How to know if it’s a condo?
- Look for a Luxury Home? Now’s The Time To Act!
- Ready To Make An Offer? 4 Tips For Success
- The Perfect Home Loan Application
- What You Need To Know About VA Loans
- Condo Loans - Low Down Payment
- How We Safe Guard Your Information
- Mortgage Insurance
- Niche - Unique Mortgages
- Path 2 Buy
- Rent vs. Buy
- Rising Rent - No Problem
- Student Loan Debt
- The Mortgage Process
- USDA-Wide Open Spaces
Homeowner Tips
Tax Information
Loan Programs
- FHA “Back-To-Work: Extenuating Circumstances” Program
- FHA 203k Streamline Rehab Loan
- HomeStyle Renovation
- HUD-184 Native American Program
- Jumbo Loans
- Veterans Assistance Loan Benefits
- Reverse Mortgage
- 3 Reasons Why First-Time Home Buyers Love FHA
- FHA - Home Ownership Opportunities
- FasTrac Approval Process
- Home Ready Program
- Jumbo Plus Loans
- Loan Programs - Pros & Cons
Closing Information
Financing Information
- How Low Interest Rates Increase Your Purchasing Power
- The Power of Pre-Approval for Agents
- Where Are Interest Rates Headed?
- Why Pre-Approval Should Be Your First Step
- Delayed Financing Options
- Discount Points vs Premium Pricing
- Duplex Financing Options
- FICO Scores
- Flipped Property Finance Options
- Jumbo - Credit Challenged
- No Lender Fees
- Refinancing
Specialty Programs
- Union Advantage
- FHA - Benefits
- FHA - Credit Requirements
- FHA - Limited Savings
- FHA - Refinance
- Family Opportunity Program
- Fannie Mae - 97% LTV
- HomeScout: Your Unfair Advantage
- Jumbo - Medical Loan Program
- Luxury Home - 2 Million Max
- NHF Platinum - Down Payment Assistance
- Non-Resident Alien Home Loan