LOAN PROGRAMS
Offering a Variety of Different Opportunities
VA Financing
This program is designed for eligible persons who served in the military on active duty or as a reservist. This program was established in 1944 and guarantee a portion of the loan against foreclosure. The VA program allows for 100% financing and does not require a down payment. In addition, the seller can pay all closing cost on the buyers behalf.
FHA Mortgage
Federal Housing Administration Loans were originally designed by the government to help low and moderate income families. FHA Insures Lenders against default by borrowers. Mortgage Insurance is required no matter the amount of money that is put down toward the purchase price. FHA loans are used in conjunction with most HUD approved Down Payment Assistance Programs. Currently, the required down payment for a FHA loan is 3.5% and the seller can pay up to 6% of closing cost on the buyer’s behalf.
FHA 203k Full and Streamline
This FHA type of loan can be used to acquire and “fix up” the property of your choice. This loan combines acquisition and improvement into one single loan, one payment, and one interest rate. The costs of improvements are funded in incremental payments as needed by the contractor. The 203k full will be used for improvement prices about 35k and will be required to have a FHA 203k inspector involved. The 203k streamline will be used for improved priced below 35k and does not require the use of a 203k inspector. Both programs consist of a 3.5% down payment and will allow the seller to pay 6% of the buyers closing cost.
Buy Down
This program is a variation of the fixed rate mortgage. A buyer and seller can negotiate to pay the Lender a sum of money at closing to reduce the buyers monthly payment (interest rate) initially. The interest rate for the two year period might be 6.5% as an example and it is bought down to 4.5% the first year and 5.5% the second year. This enables the first time homebuyer to qualify for a larger mortgage the first year. The second year is still affordable with an addition of only 1% interest with the third year reaching the rate 6.5% which will remain the fixed rate for the term of the loan.
ARM
The Adjustable Rate Mortgage was developed in the late 1970s this program quickly became popular because of the low initial payment. ARM payment will adjust throughout the term of the loan. This program contains monthly payments that are not fixed and are subject to changes in the interest rate as a result of a pre-determined index ( 1, 3, or 5 years as an example).
This loan has three characteristics. Initial Interest Rate – the interest rate offered at the beginning of the ARM loan. Interest Rate cap – A limit placed on the amount that an interest rate can increase or decrease during any adjustment period. Conversion Clause – Allows the borrower to change the ARM to a fixed rate loan at some point during the term of the mortgage.
Conventional Fixed Rate
Standard product used by most lending institutions. Years ago conventional loan required 20% down. Now conventional loans are more flexible and do not require a large down payment. Typical down payments will range from 5% – 10% for most Conventional loans. There are no fluctuations with the payment and will be consistent throughout the term of the loan.
40 Year Fixed Rate Mortgage
Similar to the conventional 30 year mortgage. The 40 year term mortgage will allow you to stretch your payment to 40 years.
Interest Only Loan
This program allows you to make payments toward the interest on your loan only. The principle would not be decreased during the term of the loan. Payments are usually lower as compared to a Principle and Interest payment. This program can be offered in conjunction with a 30 year term, 30 year term or a 10 year term (after 10 years the note would change to a principle and interest payment).
Construction To Permanent Mortgages
This conventional Products that will combine construction loan parameters with long term permanent financing. A construction loan usually runs from 4 to 12 months and is designed to finance the construction of a new home. (New home complex or builder site) It differs from a permanent loan, which normally runs from 15 to 30 years. With a construction-to-permanent loan there is one closing, but two objectives are met: (1) a loan is obtained to cover the building of the structure, and (2) the long-term financing is secured. When the construction phase has ended, the loan covert to permanent financing. A construction-to-permanent loan is most often granted when land is owned outright.
Bridge Loans
This Conventional Product will span the gap between the end of one loan and the start of a brand new loan. The most common use of a bridge loan is to obtain the equity from a current residence to use for the down payment or closing cost for a new home. After the new home has been settled, the bridge loan would be satisfied through the sale of the old property. Bridge loans are typically for six-month terms with a renewal option for another six month.
Reverse Annuity Mortgages
The interest rate on Reverse Annuity Mortgages (RAMs) is usually fixed and the payments are not included. This loan is due when the home is sold or upon death of the borrower. The term may be fixed and have refinancing options.
A reverse annuity mortgage is attractive to borrowers on fixed incomes who need the equity to supplement their monthly incomes while continuing to own, live in and maintain the property. With this mortgage, the lender appraises the home and offers a loan based upon a certain percentage of the home’s current value. The payments are made directly to the borrower by the lender. The lender becomes due upon a specific date, or the sale of the property, or the death of the borrower, whichever comes first.
Land Installment Contracts
With this type of quasi loan, the borrower makes payments without possessing the title or ownership. The title is not conveyed until a certain number of payments are made or the property has been refinanced. The borrower has equity interest only. If one payment is missed, the borrower could lose the property. This agreement was popular when interest rates were high and homes were sold with loans that could not be assumed.
Energy Efficient Mortgage
The Energy Efficient Mortgage (EEM) has been around since the late 1970s.
With an EEM, the borrower increase the mortgage loan by as much as an additional $8,000.00 to install energy conservation measures such as storm windows, solar panels and automatic thermostats. The loan payments rise accordingly, but the borrower’s savings on the utility bills over the life of the loan normally equal or surpass the installment costs. The improvements can also raise the resale value of the home, and in some cases, can raise property values.
USDA Loan
This government loan allows buyers to purchase a home with no money down. This 100% down financing program is geared toward purchases of homes in certain rural areas. Unlike most other loans, this program does not require mortgage insurance. There is a funding fee, similar to VA and FHA that will be financed within the loan. This program also allows the seller to pay up to 6% of the buyers closing cost.
$100 Down FHA
This is a great program for those with “vision”. This program allows you to purchase a designated home for $100.00 down. Visit HUD’s website to view homes that are available. Most likely, you will be using the 203k loan to complete needed improvements. This program allows for the seller to pay up to 6% of the buyers closing cost.
Officers And Teachers Next Door Program
This is a FHA type of loan was designed for those serving our community. Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence. This program allows for the seller to pay up to 6% of the buyers closing cost.
Home Path Program
This program is for specific properties designated “Home Path”. This program was designed for homes owned by Fannie Mae and have been indicated to qualify for this program. The down payment for this program is 3%. No PMI is required and many times an appraisal won’t be required. This program allows you to complete home improvement tasks similar to the 203k financing program. Sellers are allowed to contribute up to 6% of the buyers closing cost.
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Testimonials
Here’s what our happy clients had to say about our services:
I would like to extend my gratitude for the services that were provided by Residential Mortgage Corporation. Being new to the Home Buying process, at first I felt nervous and intimidated by embarking on this life-changing experience and new information that I was receiving from various sources like family, friends, and professionals in the Real Estate Industry. I was also with two other Mortgage Companies and my experience I wish to forget because I was misinformed and uneducated on so many things. Mr. Hungerford was able to “clear” the air by giving me sound information that enabled me to view the pros and cons of the Home Buying Process. With this sound foundation of knowledge, I was able to make a concise decision on the home that I selected and the right loan and program to fit my specific needs. Mr. Hungerford and his staff were at my access through this intense process. Even as things changed, Mr. Hungerford and his staff explained in detail what was happening and the next step in the process which eased my mind. As a first-time home buyer, I will never forget the day of Closing and receiving the keys to my new home and right there to guide me along the way was Mr. Hungerford. I would recommend Residential Mortgage Company to anyone based upon the professional and tailor-made service that I received. I am blessed to have the services of a Residential Mortgage Company to represent me. THANK YOU
5/17/2012
Dear RMC Clients,
I’d like to take this opportunity to commend Mr. Hungerford for his sensitivity and expertise in helping me acquire my first home just recently in Prince George’s county. I was about to renege a contract that I had on a particular home after being disappointed by another mortgage company, but due to his diligence and hard work I am now two and half months in a home that I thoroughly enjoy. I highly recommend Mr. Derick Hungerford to any and all prospective homebuyers. Thank you.
Sincerely, Kenneth A. Wilcots
I would like to take an opportunity to offer a formal recommendation for Mr. Derrick Hungerford and the entire staff at Residential Mortgage Corporation. As a first time home buyer I encountered many people promising me the world and producing nothing. Prior my meeting Mr. Hungerford I had been through two other Lenders. One lender only qualified me for enough money to purchase a shed and the other simply told me they would not work with me. I had honestly lost hope and begin to accept that I would not be able to purchase a home. After my first meeting with Mr. Hungerford and telling him all my fears and doubts, I left that office hopeful that purchasing a home would become a reality for me. Mr. Hungerford and his team walked me step by step through the process and I could always rely on them to provide me with an answer to my question. There were times that I drew frustrated and Mr. Hungerford went above and beyond his job to assure me everything was going to work out.
There are no words that explain my feelings towards the level of professionalism Mr. Hungerford provided me. My phone calls were returned in a timely manner, as well as my e-mails. I went through a down payment assistance program that caused my settlement date to be pushed back what seemed like 100 times, Mr. Hungerford kept me calm and assured me that everything was going work out. To give and example about Mr. Hungerford’s character he even made a personal trip to the office that was handling my file, to seek a resolution to the constant hold up on my settlement. That type of service assured me that God had placed me in the right hands. As I went to closing Mr. Hungerford was right there with me. After closing he continued to reach out to me to again assure me that him and his team was there for me. I will be forever grateful for what Mr. Hungerford did for me. When other companies would not take a chance on me, God lead me to Residential Mortgage Corporation and I Thank him for that every time I walk in my NEW HOME.
As a child of God I know that when God bless me or brings me through a situat”lon it is not just for me, it is for those who he places in my life as well. Without hesitation I would recommend every person I speak to who is interested in purchasing a home to first start with calling Mr. Derrick Hungerford at Residential Mortgage Company. Again I Thank You Mr. Hungerford from the bottom of my heart for everything that you have done for me during this process.
God Bless,
TAMIKA WILLIAMS
Tamika Williams
Blessed, Grateful, and Satisfied First time Home BuyerMarch 27, 2012
A sincere thank you for the excellent customer service and assistance I received with my recent home purchase.
I never could have gotten a loan without RMC great team, your company made the process smooth and stress free for me and my family.
Once again, thank you very much words cannot express the gratitude I have for your organization, and I highly recommend RMC to anyone that is thinking of qualifying for a loan to purchase their dream home.November 13, 2014
Dear RMC staff,
We wanted to personally thank you and Residential Mortgage Corporation for making our
dream of homeownership possible in such a difficult market environment. Your staff was
professional, courteous, and quick to respond. We sincerely appreciate how quickly you were
able to put together the loan given the short amount of time the seller’s bank gave us to complete the transaction. We know that we had a lot of questions for you as first-time
homebuyers and I can only say thank you for your patience. We are so excited to become home owners.
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