Zack Alyasiry | 8 Minute Read
July 28, 2023
Ready to Secure Your Dream Home? Explore Olympian Mortgage Loan Options!
Congratulations on your decision to purchase a new home! As you embark on this exciting journey, it’s essential to find the perfect mortgage loan that aligns with your unique needs. At Olympian Mortgage, we offer a range of mortgage options, each with its distinct advantages and considerations.
Fixed-Rate Home Loans: Stability and Predictability
If you have a solid financial profile and envision staying in your forever home, our Fixed-Rate Home Loans are an excellent choice for you. These loans come in 15- and 30-year fixed-rate terms, ensuring a consistent and predictable monthly payment throughout the loan term. The interest rate remains unchanged, although the principal and interest portion of your payment may adjust as the loan amortizes. It’s important to note that property taxes and home insurance premiums might change, affecting your escrow payment.
If your down payment is less than 20% at closing, private mortgage insurance (PMI) will be required. The good news is that you can eliminate PMI once you reach 20% equity in your home.
Adjustable Rate Mortgages (ARM): Flexibility and Savings
For those who plan to relocate from their starter home within a few years or wish to pay off their loan early, our Adjustable Rate Mortgages (ARM) offer an enticing opportunity to save money. ARM borrowers need to meet the same credit and income standards as fixed-rate conventional loans to qualify.
The ARM starts with an initial fixed-interest period, typically ranging from 5 to 10 years, during which you’ll enjoy a lower fixed rate than current market rates. After the introductory period concludes, your interest rate will fluctuate based on prevailing market rates. Rest assured, ARM loans include rate caps to limit interest rate fluctuations, safeguarding you from excessive increases or decreases. Those planning to move or refinance after the introductory period tend to benefit the most from ARM loans.
Conventional Loans: Flexible Down Payment Options
Our Conventional Loans are private mortgage loans without government backing. Contrary to common misconceptions, you don’t need a 20% down payment to qualify for a conventional loan. At Olympian Mortgage, we offer conventional mortgages with as little as 3% down, making homeownership more accessible.
Keep in mind that conventional loans typically have stricter credit score and debt-to-income ratio (DTI) requirements. A minimum credit score of 620 and a DTI ratio of 50% or less are usually needed to secure a loan from most mortgage lenders.
Ready to buy home a home, select an option below!
FHA Loan: Embrace Homeownership with a Low Credit Score
If you have a low credit score and aspire to own a home, our FHA Loan program is worth considering. These loans are government-backed home loan insurances offered through private lenders like Olympian Mortgage. FHA loans provide accessible options for buyers with lower credit scores.
Before you proceed, it’s essential to understand the pros and cons of FHA loans, ensuring you make an informed decision tailored to your financial situation.
- Pros: Easier-to-Meet Credit Requirements with Olympian Mortgage
At Olympian Mortgage, we understand that a less-than-perfect credit history should not hinder your dream of homeownership. If you’re concerned about buying a house due to previous bad credit, our FHA mortgage option might be the perfect solution. Our FHA mortgage is designed to assist homebuyers with lower credit scores, providing an opportunity to own a home despite past credit challenges.
The advantage of an FHA mortgage lies in the government-backed insurance offered to lenders, mitigating their risk when lending to borrowers with lower credit scores. This means lenders are more willing to offer loans that they might otherwise consider risky. With an FHA loan, you can qualify with a credit score as low as 580 points, requiring a minimum down payment of just 3.5%.
It’s important to note that an FHA loan does entail an upfront mortgage insurance premium and a monthly mortgage insurance premium (MIP) payment. Unlike private mortgage insurance (PMI), the MIP payments remain throughout the life of the loan. However, once you attain 20% equity in your property, many homeowners choose to refinance their FHA loans into conventional mortgages, freeing themselves from the MIP requirement.
- Cons: Seller Considerations with FHA Loans
While our FHA mortgage offers attractive benefits for homebuyers, it’s essential to be aware of some considerations, particularly in competitive seller’s markets. Some sellers might find FHA mortgages unattractive, and it could impact your position in a bidding war.
The FHA appraisal process evaluates both the value and livability of the home. While this provides additional assurance for the buyer, it can lead to a slightly longer mortgage approval process and potentially extend the closing date.
VA Loan: Honoring Our Nation’s Heroes with Olympian Mortgage
At Olympian Mortgage, we take great pride in serving those who have bravely served our country. Our VA loan is a government-backed mortgage program exclusively designed for our nation’s veterans, active members of the armed forces, and select surviving spouses. If you are eligible, this loan offers exceptional benefits to help you achieve homeownership with ease.
To be considered for a VA loan, you must provide a certificate of eligibility, confirming your status as a qualified candidate. One of the most significant advantages of a VA loan is the ability to purchase a home with no down payment, allowing you to conserve your savings for other important expenses. Additionally, you can avoid private mortgage insurance (PMI) payments, which further contributes to making your homeownership journey more affordable.
While a small VA funding fee is required upon obtaining the loan, some select veterans may be eligible for a waiver to remove this fee. Furthermore, VA loans typically offer lower interest rates compared to comparable government-backed loans, providing even more cost savings over the life of the loan.
To qualify for a VA loan, certain service requirements must be met. One of the following statements must hold true:
- You have served 90 consecutive days of active military duty during wartime.
- You have served 181 consecutive days of active military duty during peacetime.
- You have been an active member of the National Guard or Reserves for at least 6 years, or you served 90 days under Title 32, with at least 30 of those days being consecutive.
- You are the surviving spouse of a service member who lost their life in the line of duty or due to a service-related injury.
You or your spouse must move into your new property within 60 days of closing to utilize the VA loan for buying a home. However, we also recognize that there might be exceptions, such as deployment, where this timeframe might not be feasible.
It’s important to note that the VA loan is intended for purchasing your primary residence. Unfortunately, it cannot be used to buy a second home or an investment property.
Nonconforming Loans: Tailored Solutions for Your Unique Needs with Olympian Mortgage
At Olympian Mortgage, we understand that every borrower’s financial situation is unique, and we believe in providing personalized solutions that meet your specific requirements. Nonconforming loans are an essential part of our offerings, catering to those whose financial needs fall outside the standard conforming loan criteria.
Conforming loans typically adhere to the minimum standards set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac, allowing lenders to sell these mortgages and maintain liquidity in the mortgage markets. However, not all loans fit within these standard guidelines, and that’s where nonconforming loans come into play.
Jumbo Loans: The Common Nonconforming Option
One of the most common types of nonconforming loans is the jumbo loan. These loans exceed the conforming loan limits set by the GSEs, making them suitable for higher-value properties, especially in expensive metropolitan areas. While jumbo loans historically had higher interest rates, this is not always the case today. Many lenders offer competitive rates for jumbo loans, making them an attractive option for borrowers seeking to finance luxury homes or properties in high-cost regions.
Jumbo loan down payment requirements may vary depending on the loan amount and your credit score. Our experienced team at Olympian Mortgage will work closely with you to determine the down payment that suits your financial situation.
Evaluating Your Eligibility for Nonconforming Loans
When applying for a nonconforming loan, lenders will conduct a thorough assessment of your finances and cash reserves. You may be required to demonstrate a higher level of cash reserves, such as having up to 12 months of mortgage payments in your savings account. Additionally, a higher credit score might be necessary compared to other loan types. Rest assured, our team will guide you through the process, providing expert advice to ensure you meet the eligibility criteria for your desired loan.
Finding the Right Loan for You with Olympian Mortgage
As you embark on your journey to homeownership, we are here to support you every step of the way.
At Olympian Mortgage, we pride ourselves on offering a wide range of loan options, including nonconforming loans, tailored to your unique needs. Contact us today to explore our diverse mortgage solutions and discover the loan that’s right for you. Our dedicated team is ready to assist you in making your dream of owning a home a reality. Let’s get started on your homeownership journey together!
