Loan Programs - Gorman & Gorman Home Loans

The outline below will help you determine which
of our loan products is best for you:

Fixed-Rate Mortgages FHA Mortgages VA Mortgages Adjustable Rate Mortgages First-Time Buyer Programs Jumbo Loan Programs Home Ownership Accelerator Money Merge Account (UFirst) Home Equity Line of Credit Home Equity Fixed Loan Alternative Loan Programs

Fixed-Rate Mortgages back to top 30-year fixed, 15-year fixed
Advantages:	Disadvantages:
Monthly payments are fixed over the life of the loan Interest rate does not change You’re protected if rates increase Option to refinance if rates decrease	Higher interest rate Higher mortgage payments Rate does not drop if interest rates decrease

Federal Housing Administration (FHA) Mortgages back to top >>Learn More about the Federal Housing Administration 30-year fixed, 15-year fixed, Adjustable Rate Mortgage (ARM)
Advantages:	Disadvantages:
Only need 3% down payment Down payment can come in the form of a gift Seller can pay up to 6% of closing costs Former bankruptcy and/or less-than-perfect credit may not be a problem	Must purchase Mortgage Insurance (MI) All outstanding judgements must be paid in advance of closing May take longer to process than a conventional loan

Department of Veteran Affairs (VA) Mortgages back to top
>>Learn More about Loans for Veterans
30-year fixed, 15-year fixed, Adjustable Rate Mortgage (ARM)

Advantages: Disadvantages:

Up to 100% of loan amount can be financed

Seller can pay all closing costs and/or discount points

No Mortgage Insurance (MI)

No cash reserves necessary

Most loans are assumable

Eligibility requirements vary

Can only be use a limited amount of times

May take longer to process than a conventional loan

Adjustable Rate Mortgages back to top 10/1 ARM, 7/1 ARM, 3/1 ARM, 1-year ARM, 6-month ARM, 1-month ARM
Advantages:	Disadvantages:
Lower initial monthly payment Lower payment over a shorter period of time Rates and payments may go down if rates decrease May qualify for higher loan amounts	More risk Payments may change over time Potential for high payments if rates increase

First-Time Buyer Programs back to top >>Learn More about the advantages of being a First-Time Homebuyer
Advantages:	Disadvantages:
Lower down payment Easier to qualify You may get lower rates	May be subject to income and property value limitations Some programs with government subsidies may have a recapture tax if you sell the house too early.

Jumbo Loan Programs back to top >>View this PDF which explains why Jumbo Pricing can be expensive.
Advantages:	Disadvantages:
Get loans for higher loan amounts Get fixed or adjustable loan terms	Higher rates Many times there is more upfront cost

Home Ownership Accelerator - back to top
Advantages:	Disadvantages:
Save Thousands in Interest Build Equity Faster Pay off Much Sooner	Adjustable Interest Rate Must have at least 10% equity in home

Money Merge Account (UFirst) back to top
Advantages:	Disadvantages:
Save Thousands in Interest Build Equity Faster Pay off Much Sooner	Must have both a first & second mortgage Can be time consuming because you must transfer money consistently between the different accounts

Home Equity Line of Credit back to top
Advantages:	Disadvantages:
You only borrow what you need Pay interest only on what you borrow Flexible access to funds Interest may be tax deductible (ask your tax advisor)	Rates can change. Maximum interest rate is typically high. Payments can change Harder to refinance your first mortgage

Home Equity Fixed Loan back to top
Advantages:	Disadvantages:
Fixed payments Interest may be tax deductible (ask your tax advisor)	Higher interest rates than first mortgages Harder to refinance your first mortgage

Alternative Loan Programs back to top
>>Learn More about Alternative Purchase Strategies

An alternative loan programs might best serve your needs:

Piggyback loans 80-10-10 or 80-15-5.
Debt consolidation programs
Home Improvement loans
You may qualify even if you may have been turned down before!