Home Mortgage Loan Programs

Finding your way through all of the Montana mortgage loan programs, options, payment plans, applications and paperwork can be confusing. Get acquainted with some of the terms and options outlined below and then give one our mortgage professionals a call. We’ll be happy to walk you through the process and help you choose the best program for you and your family. We pride ourselves on customizing home loans for the individual situation and scenario. No two borrowers are the same.

Fixed Rate Loans One of the many types of home loans offered to borrowers is called a fixed rate mortgage. Unlike an adjustable rate mortgage the monthly payments for a fixed rate mortgage remain “fixed” throughout the life of the loan and it’s the best security against rising mortgage rates and higher payments. If you don’t plan on moving in the next 7 years or so, the fixed-rate mortgage may be your best choice. There are many different kinds of fixed rate mortgages and they can be structured from 10 to 30 years in duration. Interest rates are at historic lows. A fixed rate mortgage will give you and your family stability and comfort knowing that your interest rate will never increase.
FHA Loans The FHA offers a variety of loan programs to a large population and FHA mortgages can have fixed or adjustable interest rates. Many find these home loans attractive because they require very small down payments, gifts can be used for down payments and closing costs. These loans also have qualifications that are easier to meet than traditional mortgages including higher debt to income ratios and more forgiving credit score requirements. The FHA does not require a minimum FICO score to meet qualifications and these programs will allow home purchase two years after a bankruptcy filing.

  • FHA loans are created by the Federal Housing Administration.
  • You can refinance up to 97.75% of your home’s value. Or, if you’d like a cash-out refinance, you can refinance up to 85% of your home’s value.
  • Only a 3.5% down payment required for home purchases.
  • FHA also allows seller concessions up to 6% of your home purchase price.

FHA has permitted streamline refinances on FHA insured mortgages since the early 1980’s. The term “Streamline” refers only to the reduced amount of documentation and underwriting that needs to be performed in order to receive loan approval. To you, that means less effort, less paperwork, less aggravation and no hassle in order to obtain an immediate monthly savings on your mortgage expense.

VA Loans The more you know about our home loan program, the more you will realize how little “red tape” there really is in getting a VA loan. These loans are often made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran’s certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. Refinance up to 90% of the value of your home Cash-out refinance also available Funding fee can be rolled into the refinance There is no monthly PMI with a VA loan. The funding fee is waived for disabled veterans and surviving spouses.
Jumbo loans are for any loan amount over the conventional loan limit of $417,000. This program can be a great tool to get the maximum financing available for more expensive properties. We offer fixed rate 30, 20 and 15 year programs as well as variable rate ARMs in the Jumbo Home Loan programs. With our great source of investors, we are able to offer rates comparable to conventional conforming programs but with the increased lending capacity of the Jumbo program. Give Caroline a call today and find out if this program is right for you.
Adjustable rate mortgages allow the interest rate on your home loan to fluctuate during its life after a set period of time like 5, 7 or 10 years. When financial markets are unstable, adjustable rate mortgages can be risky for home owners because the rate can increase annually or in shorter time periods, depending on the program. On the other hand, this type of mortgage may allow you to purchase a more expensive home. ARMS may be a good option for home buyers looking for a low rate and low monthly payments; however, if you are planning on staying in your home for more than 7 years, you may want to look into securing a fixed-rate mortgage to protect yourself against rising interest rates. Give Caroline a call today and find out if this program is right for you.

A product of Montana Community Development Corporation

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 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, RD).

  • Covers up to 100% of down payment and/or closing costs
  • Structured as a grant – the borrower does not pay it back, ever
  • 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/