Bozeman Home Loans: Purchase a Home
Buying a home is one of the most important financial decisions you’ll make during your lifetime. Earnest money is at stake, and there is a firm, contracted closing date on the purchase and sale agreement. It is critical that you partner with a trusted Montana mortgage planner who can guide you through the process.
Owning a home is an accomplishment. It elicits a sense of pride for families whether you are in Bozeman, Big Sky or beyond. At GoPrime Mortgage, Inc. in Bozeman, Montana we pride ourselves on offering a wide variety of mortgage options that are perfectly suited for the unique needs of almost any home buyer or owner. Below is a sampling of the most common mortgages we provide. VA Loan, FHA Loans, Conventional Loans, USDA Loans and Jumbo loans are just a few of the most popular options we offer.
Contact our lenders today to learn more about how any of our programs can help you accomplish your home ownership goals.
Guaranteed by the Veterans Administration, VA Home Loans are mortgages designed to support veterans, active service members, and eligible surviving spouses. Aside from the veteran’s Certificate of Eligibility and the VA-assigned appraisal, the application process is fairly similar to many other types of mortgage loans. Disabled veterans and their surviving spouses are exempt from funding fees, while other qualifying borrowers can roll these fees into the loan. At GoPrime Mortgage, Inc, we pride ourselves in doing a great job to take care of our Veterans. While many small lenders struggle with the unique characteristics of a VA loan, we know them inside and out. Helping to get them done in an easy and efficient manner is something that we are known for!
Key Advantages of VA Loans:
- No down payment when the sale price does not exceed the appraised value
- Seller can pay closing costs
- Typical interest rates lower than standard Conventional rates
- Relaxed qualification standards that allow higher debt ratios and moderate credit scores
- Refinance up to 90% of home value
- Roll funding fees into the loan amount
Conventional Loans are a good choice for borrowers with good credit and funds for a down payment ranging from 3–20% of the home purchase price. Conventional loans are what you think of when you are talking about a “plain vanilla” 30 year Fixed Rate Mortgage. Conventional mortgages are available for almost any type of residential property. Conventional loan limits for 2019 are now at $484,350. As the average price of new homes increases in our area, this expanded limit will help keep borrowers in a conventional loan and out of a Jumbo loan that can have a few more underwriting requirements.
Key Advantages of Conventional Loans:
- Borrow for primary, secondary, vacation or investment properties
- Designed for borrowers with strong credit and down payment as little as 3%
- No requirements for upfront mortgage insurance premiums or funding fees like FHA, VA or USDA
- Option to cancel Private Mortgage Insurance (PMI) at 80% loan-to-value ratio
- Allows the use of non-occupant coborrowers to help qualify for purchase of a primary residence
- Gift Funds are allowable from eligible family members
- We offer terms of 30, 25, 20 or 15 year fixed rate terms or a variety of Adjustable Rate terms as well
USDA Mortgage Loan (also known as a Rural Housing Loan) is a program guaranteed by United States Department of Agriculture that includes a low guarantee fee. The home being mortgaged must be the buyer’s primary residency in a qualified USDA area and there are specific USDA income eligibility requirements. This is good mortgage option for first-time homebuyers, move-up buyers, and owners looking to refinance in specific USDA areas. In a rural State like Montana, this is a wonderful loan choice for many borrowers. With 100% financing available, it can help overcome the lack of a down payment and help get you into your home. There are income limits set per county but no true loan limit as long as the debt ratios are in line with program guidelines.
Key Advantages of USDA Loans:
- No down payment is required
- Finance up to 100% of the property value
- Add all fees and costs to the loan, including the guarantee fee
- No loan size limits
- Refinance current USDA loan via USDA Streamline Pilot Refinance Program with no appraisal, options to finance all closing costs
- Rates are typically a bit lower than conventional and the monthly mortgage insurance is less than half of that of FHA loans
The Federal Housing Authority (FHA) offers a variety of loan programs with fixed or adjustable interest rates. These are attractive mortgages for many buyers as they require very little money down and gifts can be used for down payments and closing costs. The qualifications for these loans are more lenient than traditional Conventional mortgages and are a great option for first-time home buyers but the program is not limited to First Time Home buyers. Refinances under this program can be streamlined to close faster with reduced documentations and underwriting required for loan approval.
Key Advantages of FHA Loans:
- Required down payment is only 3.5% of the purchase price
- Money for the down payment can be a gift to the home purchaser from outside sources such as family or grant funds
- Seller’s concession is up to 6% of home purchase price
- Bankruptcy or foreclosure does not necessarily disqualify a borrower
- FHA mortgage can be refinanced up to 97.75% of the value of the home
- Cash–out refinance available up to 85% of the value of the home
A product of Montana Community Development Corporation, MOFI
HomeNow is for buyers who qualify for a mortgage but struggle to come up with a down payment. The program provides down payment and/or closing costs in the form of a one-time grant or 0% Second Mortgage to eligible borrowers. The grant does not have to be repaid, ever, and buyers have equity in their home from day one. The program can pair with Fannie Mae’s HomeReady conventional loan program, or with several government loan programs (FHA, VA, USDA).
- Covers up to 100% of down payment and/or closing costs
- Structured as a grant – the borrower does not pay it back, ever. Or as a 0% Second Mortgage that is paid when the house is sold
- Builds equity from day one
- Not limited to first-time home buyers
- Conventional and Government options available
Learn more about HomeNow: https://mtcdc.org/homenow/homenow-homebuyers/