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Loan Programs

Loan Programs (7)

Friday, 12 November 2010 00:00

Fixed vs Adjustable

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What are the advantages of fixed rate versus adjustable rate loans?

With a fixed-rate loan, your monthly payment of principal and interest never change for the life of your loan. Your property taxes may go up (we almost said down, too!), and so might your homeowner's insurance premium part of your monthly payment, but generally with a fixed-rate loan your payment will be very stable.

Fixed-rate loans are available in all sorts of shapes and sizes: 30-year, 20-year, 15-year, even 10-year. Some fixed-rate mortgages are called "biweekly" mortgages and shorten the life of your loan. You pay every two weeks, a total of 26 payments a year -- which adds up to an "extra" monthly payment every year.

During the early amortization period of a fixed-rate loan, a large percentage of your monthly payment goes toward interest, and a much smaller part toward principal. That gradually reverses itself as the loan ages.

You might choose a fixed-rate loan if you want to lock in a low rate. If you have an Adjustable Rate Mortgage (ARM) now, refinancing with a fixed-rate loan can give you more monthly payment stability.

Adjustable Rate Mortgages -- ARMs, as we called them above -- come in even more varieties. Generally, ARMs determine what you must pay based on an outside index, perhaps the 6-month Certificate of Deposit (CD) rate, the one-year Treasury Security rate, the Federal Home Loan Bank's 11th District Cost of Funds Index (COFI), or others. They may adjust every six months or once a year.

Most programs have a "cap" that protects you from your monthly payment going up too much at once. There may be a cap on how much your interest rate can go up in one period -- say, no more than two percent per year, even if the underlying index goes up by more than two percent. You may have a "payment cap," that instead of capping the interest rate directly caps the amount your monthly payment can go up in one period. In addition, almost all ARM programs have a "lifetime cap" -- your interest rate can never exceed that cap amount, no matter what.

ARMs often have their lowest, most attractive rates at the beginning of the loan, and can guarantee that rate for anywhere from a month to ten years. You may hear people talking about or you may read about loans that are called "3/1 ARMs" or "5/1 ARMs" or the like. That means that the introductory rate is set for three or five years, and then adjusts according to an index every year thereafter for the life of the loan. Loans like this are often best for people who anticipate moving -- and therefore selling the house to be mortgaged -- within three or five years, depending on how long the lower rate will be in effect.

You might choose an ARM to take advantage of a lower introductory rate and count on either moving, refinancing again or simply absorbing the higher rate after the introductory rate goes up. With ARMs, you do risk your rate going up, but you also take advantage when rates go down by pocketing more money each month that would otherwise have gone toward your mortgage payment.

Thursday, 11 November 2010 00:00

VA Loans

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First and foremost.  I am a Marine, I love helping other vets!  We have closed many VA loans.  Call me so that I can help you get the benefits you earned! -Semper F

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. 

Other benefits of a VA loan include:

  • Great interest rate.
  • Closing costs comparable – and sometimes lower - than other financing types. (VA limits the fees that can be charged at closing)
  • No private mortgage insurance requirement.
  • Right to prepay loan without penalties
  • Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
  • Counseling and assistance available to veteran borrowers having financial difficulty or facing default Marineson their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home, and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans must meet certain eligibility qualification dictated by the VA. A Certificate of Eligibility from the VA must be presented obtained to qualify for the loan, if you dont have this document we can help you get it.


Thursday, 11 November 2010 00:00

FHA Loans

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FHA loan programs are particularly beneficial to those buyers with less available cash. When compared to conventional loans the rates on FHA loans comparable, while down payment requirements are lower.

Some of the other benefits of FHA financing:

  • Only a minimum 3.5% required down payment.
  • Gifts and government down payment assistance is an acceptable source for down payment.
  • Great rates
  • Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
  • More flexible underwriting criteria than conventional loans
  • FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
  • Loans are assumable to qualified buyers.

Thursday, 11 November 2010 00:00

Zero Down Financing

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Making dreams come true with zero down mortgages

Yes you read that correctly!

We don’t think that saving for a down payment should be the reason you put your dreams on hold. We can help you buy your dream home with a zero down mortgage loan. You’ll not only be able to afford a home sooner, you’ll probably be able to afford more home. With a zero down mortgage, the amount of loan you can qualify for is determined by your ability to make your monthly payments rather than how large a down payment you’ve saved. And, for most buyers, this means qualifying for a larger loan.

Buying a home is something we all dream about, usually for years. You may have saved money for a down payment, but just don’t have enough to buy your dream home.

Let us help you explore all your mortgage options. We look forward to helping you!



Thursday, 11 November 2010 00:00

FHA 203k Renovation Loan

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Is Your Dream Home Falling Apart ?

Then you need a FHA 203k Renovation Loan!

Just some of the great features of the loan product include:

    • Minimum of 3.5% down!
    • This loan generally allows for lower credit scores than other loan programs
    • Simple streamlined process
    • We offer a wide range of home improvement upgrades (carpet, roof, siding, appliances, paint, flooring, windows, septic &  more)
    • Your licensed contractors
    • NO minimum repair amount
    • Available for purchase & refinance transactions
    • And Much More . . . .
    • Testimonial - See what you can do with a renovation mortgage
    • Listen to the But Loan Song

renovation loan

Thursday, 14 October 2010 00:00

Rural Development

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Benefits Of The USDA Rural Housing Program

  • Provides 100% loan-to-value financing for existing homes or new construction based on appraised value.
  • Available to low and moderate-income rural households.
  • Less up-front cash-to-close requirements for this program than for conventionally insured or FHA loans.
  • RD PMI is much lower than many other loan programs.
  • One-time guarantee fee, payable to Rural Development (RD) at closing, which may be financed above the appraised value, as follows:
    • Purchases - 2% of loan amount
    • Refinances - 1% of loan amount
  • We are the #1 RD lender in Michigan
  • Appraiser required repairs can be rolled in to the loan, up to the appraised value.
  • Fully amortized 30-year fixed-rate loans.
  • No penalty for pre-payment.
  • Loan limits are dictated by the applicant's income with respect to program eligibility and loan repayment ability.

Check Property Eligibility




Monday, 11 October 2010 00:00

Government Programs

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Uncle Sam WANTS you to own a home.  There are many programs in place to help make the American dream possible!Uncle Sam

  • FHA Loans - Thanks to HUD some highlights are 3.5% down payment on purchases.
  • VA Loans - Qualified Veterans are able to take advantage of 100% financing & no PMI!
  • RD Loans - The USDA does more than just certify beef. They have a loan program that features 100% financing & low PMI!
  • Renovation Loans - we lend you the money you need to hire contractors to get that home in tip top shape
  • Obama Refi - Government help is on it's way! Also know as HARP 2.0.
  • Loan Modifications
  • MSHDA Loans - State of Michigan loan program to help low to moderate income families

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