Types of Mortgages

Type of Mortgages

Becoming a home owner is a tremendous step in your life. It’s an exciting time for you, but it may also be confusing. That’s okay.

Paragon Home Loans is here to help! When you work with us, you get a personal mortgage concierge who’s there to help you through all of the confusing stuff.

Understanding the Different Types of Mortgages

Not all mortgages are created equal. All types of mortgages come with their own advantages and disadvantages. The important thing is working with a mortgage banker who is going to help you figure out what mortgage option is the best fit for your needs, wants and budget.

What type of mortgage makes the most sense for you?

Let’s figure it out together.

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What Types of Mortgages Does Paragon Home Loans Offer?

At Paragon Home Loans, we offer a variety of mortgage types. As mortgage bankers we have access to more loans and lenders than banks, credit unions and online mortgage companies.

Here are some of our most popular loan options:

types of mortgages paragon home loans syracuse

Conventional Loans

Conventional Loans are mortgage loans that are guaranteed by the Federal Home Loan Mortgage Corporation (Freddie Mac) and/or the Federal National Mortgage Association (Fannie Mae). Banks and Credit unions also make portfolio loan products that are referred to as conventional.

  • Fixed or Adjustable Rate are available
  • Primary residence, Second home and Investment properties are eligible
  • 30 Year Term Available
  • Allows for the purchase of higher priced homes than FHA or USDA
  • Has options to avoid paying mortgage insurance. If mortgage insurance is paid it eventually drops off.
  • More restrictive credit standards

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FHA Loans

FHA Loans are insured by the Federal Housing Administration. The loans allow for affordable down payments and require that the borrower pay monthly mortgage insurance.

  • Fixed or Adjustable Rates
  • Primary residence only. Non occupant co-borrowers allowed
  • 15 and 30 Year terms
  • Down payment can be as little as 3.5% of the purchase price
  • Lower credit scores allowed
  • Seller contributions allowed up to 6%
  • No Prepayment Penalty
  • Requires Mortgage Insurance for the duration of the loan

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Confused? Our Mortgage Pros Can Help – It’s What They Do.

Let’s Talk About the Types of Mortgages That Make Sense for You.

Call us at (800) 343-8979

USDA Loans

USDA Loans are mortgage loans offered through the USDA Rural Development Guaranteed Housing Loan Program. This type of loan is for homebuyers looking to purchase a home that is in an eligible rural or suburban area.

  • Fixed rate loans available
  • Primary residency only. Cannot own other property
  • No down payment required
  • 30 Year term available
  • Lower credit scores allowed
  • Must meet the income requirements
  • Mortgage insurance is required but is lower than FHA and conventional loans
  • Some home repairs and upgrades are financeable

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VA Loans

VA Loans are provided by private lenders and are guaranteed by the Department of Veterans Affairs. In 1944, the VA Home Loan was created to help returning service members purchase homes. More than 22 million home loans have been guaranteed by the program to help veterans, active duty service members and their families purchase or refinance their homes.

  • Fixed and Adjustable rates available
  • No down payment required
  • Primary residence only
  • Lower Credit Scores allowed
  • No monthly Mortgage Insurance. Financeable Funding fee required for most (Disabled Veterans may be exempt).
  • Competitive Interest Rates

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Overwhelmed? Just want to talk?

We are ready and waiting.

Call us at (800) 343-8979

HomeReady

HomeReady Loans are provided by the Federal National Mortgage Association (Fannie Mae). These loans are an alternative to traditional conventional and government-insured mortgages and ideal for borrowers with low to moderate income levels. Fannie Mae debuted this program in late-2015 as an advanced, buyer friendly replacement to MyCommunityMortgage.

  • Fixed or adjustable rates available
  • 3% minimum down payment
  • Non-occupant co-borrowers permitted
  • Lower credit scores allowed
  • Better pricing and less expensive MI than traditional Conventional loan.
  • Cancellable Mortgage Insurance (PMI)
  • Primary residence only
  • Buyer education required
  • Income limit of 100% Area Median income(Some census tracks have no limits)

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HomePossible

HomePossible loans are provided by the Federal Home Loan Mortgage Corporation (Freddie Mac) as an affordable mortgage option. Home Possible loans are ideal for low to moderate income borrowers in addition to buyers in communities that are either high cost or underserved.

  • Fixed or adjustable rates available
  • 3% minimum down payment
  • Non-occupant co-borrowers permitted
  • Lower credit scores allowed
  • Better pricing and less expensive MI than traditional Conventional loan.
  • Cancellable Mortgage Insurance (MI)
  • Primary residence only
  • Buyer education required
  • Income limit of 100% Area Median income (Some census tracks have no limits)

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FHA 203K-Renovation loan

The 203k loan program is supported by the Federal Housing Administration. This government backed loan allows borrowers to finance a home purchase and Provide funds for rehabilitation. The beauty of the program is it lets the lender consider the value as if the repairs have already been made. There are two type of 203k loans. Limited and Standard. Limited is for non-structural repairs up to $35,000. Standard is for repairs that are structural in nature or exceed $35,000.

  • Fixed or adjustable rates
  • 3.5% minimum down payment
  • If the house cannot be occupied during constructions payments can be financed
  • On Limited 203k up to 50% of the funds can be advanced at closing.
  • Lower credit score requirements
  • Competitive Interest Rates
  • Mortgage insurance required for the duration of the loan
  • Restrictions on improvement types
  • On Standard 203k, an HUD approved consultant is required.
  • Repairs must be completed in 6 months.

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HomeStyle

The HomeStyle Mortgage is a renovation loan by the Federal National Mortgage Association (Fannie Mae). These loans allow homebuyers to take a single mortgage loan out for a home purchase and home renovations.

  • Fixed or adjustable rates
  • 15 and 30 year terms available
  • Higher credit score requirement
  • Single family second home and Investment Properties allowed
  • No restrictions on the types of improvements - Cancellable Mortgage insurance
  • 5% minimum down payment

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Not sure which loan is the best fit for you?

Let us help. Contact us today

What do you need in a home loan?

I need something that allows for a low down payment.

  • VA Loans- No down payment required
  • UDSA Loans- No down payment required
  • HomeReady Loans- Down payments starting at 3%
  • HomePossible- Down payments starting at 3%
  • FHA Loans- Down payments starting at 3.5%

My credit is less than perfect.

  • FHA Loans
  • USDA Loans
  • VA Loans

The Home I Want Needs Repairs

  • FHA 203K
  • HomeStyle
  • USDA

Which Type of Mortgage is the Best fit for you?

As you may have gathered, there are lots of different types of mortgages. Choosing the right one for you, your family and your budget can be tricky. The good news is that you don’t have to do it alone. The mortgage professionals at Paragon Home Loans can help you choose the right mortgage for you and your needs.

Our experienced mortgage experts will take the time to get to know you and understand your budget. From there, we will walk you through your options and which loans we will are the best fit for you. It doesn’t stop there. Our trusted mortgage consultants will be with you every step of the way, from our first conversation to closing day and beyond.

When you choose Paragon Home Loans, we guide you through the mortgage process, keeping you informed throughout the entire process so that you can be confident that your home loan is the right home loan for you.

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What's the best plan for you?

With so many options, it can be tough to find the right mortgage on your own. Let the mortgage professionals at Paragon Home Loans help. Our mortgage bankers have the resources to instantly compare mortgage rates from more than a dozen lenders. When you work with us, it’s quick and easy to get the best mortgage rates on the market.

Our mortgage bankers have the resources to instantly compare mortgage rates from more than a dozen lenders. When you work with us, it’s quick and easy to get the best mortgage rates on the market.

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