FIRST MORTGAGE REFINANCE AND PURCHASE PRODUCTS:
It is important to know the differences between the loan types and understand your options. Oregon Community Bank (OCB) wants to ensure that you have a mortgage option which meets your financial requirements with service which exceeds your expectations.
Please review the following choices and apply on line or call one of our experienced mortgage loan officers for more product details.
Secondary Market Long Term-Fixed Rate Products (Conventional):
The secondary market allows OCB to underwrite, close and service your loan locally. These types of loans are the most commonly offered by community banks like OCB for long term mortgage solutions.
Features of a Long Term-Fixed Rate Loan:
· They are simple and easy to understand compared to ARMs.
· You don’t have to worry about your interest rate changing, how the rate is calculated, how the payments are structured, or if the loan can go into negative amortization.
· They offer security for buyers, and are appropriate for first-time homeowners.
· They are well-suited to people who like to be able to predict what their monthly expenses are going to be, and for those who wish to keep their homes for a long time.
· Fixed-rate mortgages offer protection from inflation. With inflation, prices go up and the value of your dollar is reduced. Your mortgage payment doesn’t change. So when your dollars drop in value it means you’re paying less for your mortgage in real terms.
Jumbo Fixed Rate Products:
A Jumbo mortgage is a loan in excess of $417,000. Many times other lenders offer an alternative of a 1st and 2nd mortgage combination when a loan exceeds $417,000. This will require two mortgage payments and may require a higher interest rate on the second mortgage.
Features of a JUMBO loan:
· One mortgage payment at a competitive interest rate
· The ability to finance short term second mortgages into long term first lien mortgages
· One time closing fee
· Ability to lend up to $1,500,000
Veteran Administration Loans (VA):
As a result of changes to the mortgage industry, options for a conventional loan with $0 Down have evaporated and a VA loan is one of the only $0 Down home loan options.
Some people believe a VA Loan involves red tape and is more work. OCB specializes in VA Loans and has streamlined the process to save you time. This is why so many families take advantage of their VA benefits and get a VA Home Loan instead of a conventional loan.
Features of a VA loan:
· Down Payment - VA Offers $0 Down-Because a VA Loan is backed by the federal government, OCB does not require a down payment making a VA Loan one of the only loan programs that can still offer 100% financing.
· No PMI Required-Because the loan is backed by the government, OCB does not require PMI (private mortgage insurance), an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value.
· Qualification Standards - VA is More Lenient-The qualification standards for each loan type are very different. Once again, because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA Loans making them easier to obtain.
Are You Eligible?
In general, a service member is eligible for a VA home loan if he or she meets any one of these requirements:
· Served 181 days during peacetime (Active Duty)
· Served 90 days during war time (Active Duty)
· Served 6 years in the Reserves or National Guard
· Is the spouse of a service member who died while in service or from a service-connected disability
USDA Rural Housing:
What does this program do?
This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas with $0 money down. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.
Features of a USDA loan:
· Down Payment necessary-USDA offers $0 down-Your USDA Rural Housing loan does offer $0 down options. It is possible to finance the closing costs into the loan amount. Specific guidelines apply.
· Ability to finance USDA fee and closing cost in loan-The 2% guarantee fee and the closing costs can be financed into the loan if the appraisal exceeds the purchase price. Specific guidelines apply.
Who may apply for this program?
· Meet income-eligibility Agree to personally occupy the dwelling as their primary residence
· Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
· Have the legal capacity to incur the loan obligation
· Have not been suspended or debarred from participation in federal programs
· Demonstrate the willingness to meet credit obligations in a timely manner
· Purchase a property that meets all program criteria
What is an eligible area?
Check eligible addresses for the loan guarantees.
WHEDA offers a variety of 30-year, fixed interest rate mortgage loans through OCB.
Whether you’re buying your first home or a repeat homeowner, you can rely on WHEDA's unique, flexible low-cost loan.We’re certain that when you compare a WHEDA loan to other mortgages on the market, the choice will be an easy one.
Features of a WHEDA loan:
· No Private Mortgage Insurance option with a higher interest rate, often resulting in a lower monthly payment
· No money down option- single family homes
· Gift from family members for down payments
· Use regional down payment assist programs to help with down payments
· Wisconsin property and serviced in Wisconsin
Short Term Portfolio (In-house) Products:
An alternative to specialty and conventional mortgage products which require applicants to meet specific, state or national, underwriting guidelines are OCB’s in-house portfolio products. These mortgage products allow OCB flexibility in determining the common sense of a mortgage application. In situations when a loan does not fit in a secondary market loan or a specialty loan, OCB can successfully underwrite and close the loan for their own portfolio.
OCB offers qualified buyers residential lot loans tailored to meet the financing requirements for the purchase of the land only and future construction on the selected lot.
Construction loans for new-built homes are either obtained by the homebuilder or prospective owner. Such loans, which can be tough to get without a previous banking history, or creating a banking relationship, because of the lack of collateral (a finished home), have special guidelines and include monitoring to ensure timely completion so your repayment can begin promptly.
Construction loans are typically short term with a maximum of six months, and have a fixed rate. To gain approval, OCB will need to see a construction timetable, detailed plans and a realistic budget, sometimes called the "story" behind the loan
Federal Housing Authority (FHA): products being developed
Adjustable Rate Mortgages (ARM): product being developed