TYPES OF MORTGAGES
CONVENTIONAL
TERMS: 15, 20 , 30 YEARS
Best For:
- Long term ownership
- When you expect to stay in the home for many years
Features:
- Long term ownership
- When you expect to stay in the home for many years
Benefits:
- Interest is fixed for the life of the loan
- Payments become a smaller part of your budget as your income increases
ARMS (ADJUSTABLE RATE)
TERMS: 1 to 10 YEARS
Best For:
- When you are buying a starter home that you plan to sell within a set time
- The adjustable time period will determine how much cheaper the rate will be from a conventional mortgage
- Stable interest rate environment
Features:
- Usually has a lower rate than conventional mortgages
- The shorter the time period the lower the rate will be for a fixed time before the rate adjusts
- When rates don’t change much, you don’t have to worry about increases
Benefits:
- Payments are fixed for a set time then can adjust if rates increase after the rate period has expired
- Generally the amount the mortgage rate can adjust is known in a rising interest environment
- Lower overall costs if you can plan when you will sell your home
1st TIME HOMEBUYERS
TERMS: 15, 20, 30 YEARS
Best For:
- First-time home buyers, retirees
- Families in underserved areas
- Low-income borrowers
Features:
- Purchase and no cash out refinancing
- Manual underwriting
- No reserves required for single-unit properties
Benefits:
- Flexible sources of funds
- Reduced mortgage insurance coverage levels
- Minimum down payment of 3 percent
HOME RENOVATION
TERMS: 15, 20, 30 YEARS
Best For:
- Refinancing an existing home mortgage or rehabilitating a home that needs work
- Works based on plans you develop with an architect
Features:
- Allows you to get a higher mortgage based on the completed value of the home after renovations
- Mortgage company values the completed project and bases home value accordingly
Benefits:
- Helps you get the money you need for a major renovation of a home
- Tends to be a longer process but can be extremely worthwhile
203K REHABILITATION
TERMS: 15, 20, 30 YEARS
Best For:
- Remodel or first-time home buyers
- Easier requirements for Credit Score and income
- Only available for primary residence
- More paperwork may be involved
Features:
- As low as 3% down payment
- Designed to help lower income situations
- Seller can contribute up to 6% of selling price
- Requires more work to fill out government forms
Benefits:
- Great for first time home buyer with smaller down payment
- Allows home purchase with lower requirements
- Excellent for sale from parents to children
- Takes longer but could be very helpful in the right situation
CHFA – CT HOUSING AUTHORITY
TERMS: 15, 20, 30 YEARS
Best For:
- Teachers and Municipal workers
- Income Limits may apply
- Check with us if you think you might be interested
Features:
- Special Program for first time home buyers
- Based on certain area of CT
- Lower payments
Benefits:
- Lower interest rates and down payment assistance
- Can be very cost effective if you qualify
- Designed to help first time CT buyers with home purchases