Choosing the Best Mortgage Option
CresCom Bank has experienced mortgage loan officers that will explain all the details for the transaction and help you select the best mortgage program for your specific needs. Whether you are a first time home buyer or a returning buyer, we will listen, answer your questions and guide you through the loan process.
Below is an easy guide to what we offer. This will help you navigate the mortgage channels as you move through the mortgage loan process. We invite you to visit any of our area branches with questions about mortgages and the loan process. Our experienced loan officers are on hand and ready to help.
S.C. State Housing/Palmetto Heroes
· SC State Housing Finance and Development Authority offer various programs that may help you purchase a home.
· All loans are based on fixed interest rates with a maximum loan to value of 97% through the USDA option or 96.5% through the FHA option.
· SC State Housing may have down payment assistance funds available to pay all or part of the down payment.
· SC State Housing is designed to enable all South Carolinians the opportunity to purchase affordable housing.
· All programs are restricted to the borrowers’ primary residence. Second homes and Investment properties are not available through SC State Housing.
· SC State Housing is not restricted to first time homebuyers.
· To qualify for Palmetto Heroes, individuals must either be a police officer, firefighter, EMS, teacher, nurse or veteran.
USDA home loan (also known as the Rural Development Loan)
· Offered by the United States Department of Agriculture (USDA) to rural property owners
· This loan program is offered to homebuyers in a “rural approved eligible area and income within designated limits.” (http://eligibility.sc.egov.usda.gov/eligibility).
· Maximum Loan to Value is 100%
· The property must be owner-occupied and a new or existing single family residence to qualify and be in the rural area as defined by the USDA
· Allows individuals to purchase a Fannie Mae-owned / foreclosure property with only three percent down payment
· This type of loan requires a low down payment, no lender-requested appraisal and no mortgage insurance
ARMs (adjustable rate mortgage)
· The interest rate is periodically adjusted based on the credit market
· The borrower benefits when interest rates fall, however, must pay more when rates increase
· There are interest rate caps that limit how much the interest rate or monthly payment may change at the end of each adjustment period and over the life of the loan
· Ideal for individuals considering higher priced homes that conventional loans will not cover
· Generally has a higher interest rate because of the size of the loan
· Typically requires individuals to have very good credit scores
Conventional Fixed Loans
· The interest rate remains constant throughout the life of the loan
· Monthly payments remain the same from month to month
· The most common terms are 15 and 30-year mortgages. Examples of typical loan repayment terms per $10,000.00 borrowed, and 10% down payment:
15 yr fixed @ 3.75% APR - 180 monthly prinicpal and interest payments of $72.72; 30 yr fixed @ 4.75% APR - 360 monthly payments of $52.16 per $10,000 borrowed. Rates shown are effective 8/1/2013 and are subject to change at any time.
· Represents the most classic form of a mortgage loan in the United States
· Represent mortgage loans guaranteed by the U.S. Department of Veterans Affairs
· Offer long-term financing to eligible U.S. veterans and their surviving spouses
· No down payment is required and borrowers may receive up to 103.15 percent of financing without private mortgage insurance
FHA insured loan (Federal Housing Administration)
· Most suitable for lower-income individuals and represents a type of federal assistance
· Requires an upfront mortgage insurance premium (UFMIP) at closing
· Throughout the life of the loan, it requires a monthly mortgage insurance premium (MIP) which varies based on the loan-to-value ratio and term length.
For more information on our mortgage loan programs, please contact one of our mortgage specialist today.
Myrtle Beach (843)626-2200