Mortgage Loan Types

The Fixed Rate Mortgage remains the most popular loan in America. The total principal and interest payment (P&I) does not change during the life of the loan. With each payment, the principal portion of the payment increases, thereby decreasing the interest portion and the loan balance.

• Terms from 10 to 30 years
• Fully amortizing
• Conventional Conforming loans available to $417,000 and non-conforming loans available to $1 million
• FHA loans available with low down payments
• VA loans for veterans only, no down payment required
• The Adjustable Rate Mortgage has gained in popularity over the last decade as home buyers have become more sophisticated and knowledgeable in home finance.

Adjustable Rate loans are fully amortizing, but are re-amortized after each rate change, for the remaining term.

• Offered as a 30 year loan.
• Conventional Conforming loans available to $417,000. Non-conforming loans available to $750,000. Generally offered with maximum changes of 2 percent per year and 6 percent over the life of the loan.
• FHA loans available with low down payments, and rate changes limited to 1 percent per year and 5 percent over the life of the loan.

The rate on an adjustable rate loan changes annually. The change is based on a financial index, usually 1-Year LIBOR Rate plus a spread or margin to come up with the adjusted rate. The new rate generally cannot be 2 percent more or less than the current rate on the loan. The 2 percent is considered the periodic cap. Over the life of the loan, the rate generally cannot exceed the initial, first-year rate by more than 6 percent. The 6 percent is referred to as the lifetime cap.

We offer a loan that is a blend of a fixed-rate loan and an adjustable-rate loan. The benefits are a rate lower than the fixed rate loan, but better rate protection than a 1 year ARM.

We have two to choose from, both featuring 30-year terms and full amortization:

• 3/1 - Fixed for first 3 years, then adjustable annually. Great for homeowners that tend to relocate often.
• 5/1 - Fixed for first 5 years, then adjustable annually. Great for young families and some first-time homebuyers who will likely purchase a move-up home within 5 years.

* All features/parameters are subject to change without notice *

Colonial National Mortgage is a Fannie Mae-approved lender for the HomePath® Mortgage and the HomePath® Renovation Mortgage.

HomePath® Mortgage features:

• $50,000 minimum loan amount
• Minimum credit score of 660 is required
• Select from a wide inventory of Fannie Mae’s real estate owned (REO) properties
• High loan-to-value ratios
• 3% down payment
• 15% down payment on 1-unit investment properties
• No appraisal requirement
• No mortgage insurance requirement
• Financing available for renovation
• No condos in AZ, CA, FL, MI or NV

HomePath® Renovation Mortgage features:

• Primary residences only
• $50,000 minimum loan amount
• Minimum credit score of 660 is required
• Renovation loans are not available from Colonial National Mortgage in New York, New Jersey, Delaware, North Dakota, South Dakota as well as Florida Counties of Broward, Dade and Lee.
• High loan-to-value ratios
• Renovation component is built into loan amount
• Appraisal required
• Renovation must be completed within 3 months of closing
• No condos

HomePath® is a registered trademark of Fannie Mae.

HUD Good Neighbor Next Door
* All features/parameters are subject to change without notice *

Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return, you must commit to live in the property for 36 months as your sole residence.

What are the benefits to the participants?

The selected bidder may purchase the property at a 50 percent discount from the list price. For example, if a HUD home is listed for $100,000, an officer can buy it for $50,000. To make a HUD home even more affordable, you may apply for an FHA-insured mortgage with a down payment of only $100 and you may finance all closing costs.

Who can participate in the Good Neighbor Next Door Program?

Law enforcement officers, pre-K through 12th grade teachers and fire fighters/emergency medical technicians are eligible to purchase a home through this program.

First Time Homebuyer Program
* All features/parameters are subject to change without notice *

Colonial National Mortgage and the Federal Home Loan Bank now offers a special program for first-time homebuyers to match homebuyer contributions toward the down payment or closing costs at a 4:1 ratio with a maximum of $7,000. In addition, Colonial will provide a $350 buyer incentive in reduction in fees.

Example:

Homebuyer contributes	$500
FHLB adds additional	$2,000
Reduction of fees	$350

Requirements include:

• Households must contribute at least $500 of their own savings.
• Family income of 80% or less of the median income for the area to qualify.
• Housing cost ratio cannot exceed 45% of the household’s qualifying income.
• Homebuyers must complete a homebuyer counseling program.
• Must be first-time homebuyers.
• May not be used with any approve AHP grant.
• Homebuyer must agree to a 5-year retention agreement for each property receiving HELP funds.

Don't forget the $8,000 Tax Credit Program from the government for qualified first-time buyers.

Special VA Loan Programs
* All features/parameters are subject to change without notice *

Almost any lender can do a VA loan for qualified Veterans. So, why use a specialist? If you’ve dealt with military personnel or government agencies, you know the values of someone who knows the forms, the rules and processes.

Colonial National Mortgage has the staff prepared to guide you through the VA loan options.

• 100% financing
• No traditional mortgage insurance required
• Funding fee waived to those with VA disability of 20% or more
• Seller can pay all of closing costs and some other costs
• Faster refinancing

Contact one of our Relocation Service Specialists:

• Derek Bird
  
  
• Scott Taylor