Loan Programs – First Colony
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FHA
Loan terms: 15, & 30 year loans
Loan types: Purchase, Refinance
Interest Rate Types: Fixed, Adjustable
Property Type: Primary Residence

This is a HUD or government insured loan that allows buyers to purchase a home for only 3.5% down. The FHA loan has maximum loan limits for each county which are significantly lower than conventional limits (Utah County’s limit is $323,750). An FHA loan is excellent for someone who has less money to put down, and someone who has higher debt-to-income ratios, or someone whose credit is less than perfect.

  • Only 3.5% down
  • Flexible qualification guidelines
  • Debt-to-income ratio as high as 55%
  • Requires up-front & monthly mortgage insurance (MI)
  • Maximum loan limits vary by county
  • MI required for the entire life of the loan
  • Allows for no cost, no qualifying “streamline” refinance
Conventional
Loan terms: 10, 15, 20, & 30 year loans
Loan types: Fixed, Adjustable
Interest Rate Types: Purchase, Refinance
Property Type: Primary Residence, Second Home, & Investment Properties

The conventional conforming loan is the traditional mortgage program. It is called “conforming” because it fits within the standardized guidelines set by Fannie Mae and Freddie Mac. It can be used to finance all different types of residential properties. The loan requires mortgage insurance if the down payment is less than 20 percent. The monthly mortgage insurance required for this loan is cheaper than FHA mortgage insurance. A conventional loan caters to those who have more money to put down & great credit scores.

  • As low as 3% down on a primary residence purchase
  • Debt-to-income ratio as high as 45%
  • Qualifying guidelines more strict than FHA
  • Requires monthly mortgage insurance (MI) if down payment is less than 20%
  • MI can be cancelled at 80% loan-to-value
  • Loan amount up to $417,000 (anything higher is a jumbo loan – see below)
Rural Housing (RDA)
Loan terms: 30 Year Loans
Loan types: Purchase, Refinance
Interest Rate Types: Fixed
Property Type: Primary Residence

The Rural Housing loan is a federal program offered through the United States Department of Agriculture (USDA). It is designed to help borrowers with low-to-moderate income obtain home financing in specified rural areas. The program has an upfront guarantee fee of 2.0% (which can be financed into the loan) and a low monthly mortgage insurance premium. This is a great loan for those seeking financing in a rural area. Income and property location restrictions apply- see below for more details.

  • Available for properties in specified rural areas (click here to see eligibility map)
  • No down payment required
  • Flexible qualification guidelines
  • Financing up to 103.5% of the appraised value
  • Requires up-front guarantee premium & low rate monthly mortgage insurance
  • Maximum income limits vary by county (click here for details)
VA Loan
Loan terms: 15 & 30 Year Loans
Loan types: Purchase, Refinance
Interest Rate Types: Fixed, Adjustable
Property Type: Primary Residence

This is a Veterans Administration insured loan available to Veterans of the Armed Forces. It allows for 103% financing so a veteran can buy a home for no money down and finance the closing costs. The VA charges an up-front funding fee (which can be financed into the loan) that varies based on whether or not it is the borrower’s first time getting a VA mortgage. This program is a perfect option for a Veteran seeking the most affordable type of home financing.

  • Available to eligible veterans only
  • No down payment required
  • VA up-front funding fee, but no monthly MI
  • Allows for no cost, no qualifying “streamline” refinance
  • Subject to VA eligibility rules
Utah Housing
Loan terms: 30 Year Loans
Loan types: Purchase
Interest Rate Types: Fixed
Property Type: Primary Residence

This is a government insured and state sponsored loan for first time home buyers. It allows buyers to obtain financing through a first and second mortgage that equal 100 percent of the purchase price. This eliminates the need for the borrower to contribute a down payment. Closing costs can be financed into the loan. The Utah housing loan is a great option for first time home buyers that have very limited funds for a down payment.

  • This loan is not limited to first-time home buyers
  • No down payment required
  • Down payment and closing costs can be financed into the loan
  • Requires up-front MI premium & monthly mortgage insurance
  • Annual income limits range from $64,000 – $95,500 (limits vary by county – click here for details)
  • Maximum purchase price varies by county (click here for details)
  • Property must always be owner occupied, cannot be rented
Reverse Mortgage
Loan terms: Fixed, Adjustable
Loan types: Purchase, Refinance
Interest Rate Types:
Property Type: Primary Residence

This is an FHA insured loan. A reverse mortgage allows those who are at least 62 years of age, or older, to pay off a forward mortgage or use equity in their home for other purposes. In general terms, a borrower needs at least 40 to 50% equity in their home to qualify. Those who qualify can get a lump sum of cash, a monthly income, a line-of-credit, or a combination of those things. Owners retain title to the property. No repayment is required as long as the borrower lives in the property. In the event of death, heirs are responsible to pay off the lower of the loan balance or sales price of the home.

  • Available to seniors age 62 or older
  • No out-of-pocket expense
  • Use funds to pay off debt or schedule monthly income
  • Can be  used for purchase of a home in some circumstances