Loan Programs

The following is a partial list of programs offered by Mitten Mortgage Lending with a brief description of the key elements of each. For a complete list of the programs that we offer, please contact us at 734-992-2252.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

 

Which loan is right for me?

Often the answer to this question is based around the number of years you plan to stay in your home. Each type of loan has specific terms that affect the amount of the payment, the interest rate, and the length of the pay back. However, this is not the only factor. It is important to weigh many factors such as income projections, economic trends, and personal debt management preferences. Weigh the pros and cons of each loan type. The important thing is to make an educated decision. The important thing is to make an educated decision, we’re here to help with that.

Conventional Loans

Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.

Most Common Types of Conventional Loans

Fixed Rate Mortgages: Your rate and payment never change.
• 30 Year Fixed Loan
Benefits: Lowest fixed monthly payments
• 20 Year Fixed Loan
Benefits: Low fixed monthly payments
• 15 Year Fixed Loan
Benefits: Lower rate than the 30 or 20 Year Fixed Loans; Pay less interest and pay your home off more quickly.
• 10 Year Fixed Loan
Benefits: Lower rate; Pay off your loan and build equity faster.
• 5 Year Fixed Loan
Benefits: Lowest rate; Pay off your loan and build equity the fastest

Adjustable Rate Mortgages: After the initial period your interest rate can change once a year.
• 3/1 ARM
Fixed Rate for 3 Years, Adjustable Rate for the remaining 27 years
• 5/1 ARM
Fixed Rate for 5 Years, Adjustable Rate for the remaining 25 years
• 7/1 ARM
Fixed Rate for 7 Years, Adjustable Rate for the remaining 23 years


FHA Loans

FHA loans are private loans insured by the federal government. These loans are popular with borrowers who don't have enough funds to pay a traditional 20 percent down payment because they only require 3.5 percent down to qualify. Those who choose these loans are required to pay mortgage insurance which slightly increases their monthly payments.

Lenders who wish to offer these loans must be approved by the Department of Housing and Urban Development. Please contact us today to find out if a FHA loan is right for you.

First Time Home Buyer

Call to find out if you can qualify for a low down payment of 1%-3% as a first time home buyer.

Jumbo Loans

A Jumbo Loan is a mortgage loan above conventional conforming loan limits. This standard is set by the two government-sponsored enterprises, Fannie Mae and Freddie Mac. Call to find out what the Jumbo loan limits are in your specific state and county.

Refinance Loans

Homeowners looking to decrease their interest rate may consider refinancing. A refinance calls for the homeowner to obtain another mortgage loan. Those funds are then used to pay off the original mortgage loan and the homeowner is then bound by the terms of the new mortgage. Depending on your situation a refinance loan could be a great option.

Along with decreasing your interest rate, refinance loans can also help you switch from an ARM to a FRM, and in some cases reduce your loan term.

USDA Loans

A USDA Loan is a mortgage loan that is insured by the US Department of Agriculture and available to qualified individuals who are purchasing or refinancing their home loan in an area that is not considered a major metropolitan area by USDA.


Great for First-time Home Buyers
100% Financing (including Closing Costs)
No Down Payment Requirements
No Prepayment Penalties
Low Rates
Existing Homes, Foreclosures, New Construction

Benefits of USDA Loans

• 100% Financing - you can buy a home with no money down. In some cases you can even finance your closing costs.
• You can refinance your home up to 100% of the value of your home.
• Low Fixed Rate Mortgage Options.
• They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.
• They can be used for Existing Homes, Foreclosures or New Construction.
• Simple Loan Process.
• No Loan Limit. No Acreage Limit.
• There is No Prepayment Penalty.
• You can use the loan to repair or add on to your home.
• Flexible Credit Requirements.

Who is eligible for a USDA Loan?

Generally these loans are available to anyone who meets minimum credit guidelines and local area income requirements and is purchasing a home or refinancing their home in an area that is not considered a major metropolitan area by USDA.

VA Loans

Like a FHA loan, VA loans are private loans insured by the federal government. VA loans are only available to qualified military veterans and their families. These loans are only available to these individuals for their own primary residences.

For information on qualifying for this loan program please give us a call today.