Fox Valley Wells Fargo Home Mortgage Lender

Different Types of Mortgage Loan Programs

Conventional Mortgage - Any mortgage loan that is not insured by FHA, guaranteed by VA, of funded by a government authorized bond sale or grant.

Refinance Mortgage - Repaying a debt with the proceeds of a new loan, using the same property as collateral or security

Construction Mortgage - Borrowers will need a construction loan if they intend to purchase a home in a new development or if they are building a custom home. Construction loans are necessary because of the longer time frame and special requirements of the building process.

FHA Mortgage - Backed by the Department of Housing and Urban Development, this mortgage offers the borrower the ability to put as little as 3% down payment – and they can even finance “allowable” closing costs. Seller can contribute up to 6% of the purchase price to the buyer towards closing costs.

Home Equity Mortgage - A loan or credit line that is secured by the equity the borrower has in a home.

Reverse Mortgage - A reverse mortgage is a unique type of loan used by older Americans to convert the equity in their homes into cash. The money from a reverse mortgage can provide seniors with the financial security they need to fully enjoy their retirement years. The reverse mortgage has earned its name because the payment stream is "reversed." Instead of making monthly payments to a lender, as with a regular first mortgage or home equity loan, a lender makes payments to you. The money from a reverse mortgage can be used for anything from daily living expenses to home repairs and home modifications.

VA Mortgage - The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit. VA loans are guaranteed by U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. Backed by the Veterans Administration and the federal government, it is similar to FHA except that you have to be a qualified Veteran or military person.

WHEDA Mortgage - WHEDA HOME features low down payments and below-market interest rates. And with WHEDA HOME, your rate is fixed for the term of your loan from 15 to 30 years.

First Time Buyers - Many people dream of owning a home but the home loan process can be confusing for many first time home buyers. Mortgage lenders offer first time buyers with many home loan options and assist the buyer in finding the best home loan for them. First time home buyer programs can offer lower interest rates, low down payments, or reduced taxes.

Debt Consolidation - Many mortgage lenders give borrowers the option of using all or part of your new home loan for debt consolidation. If you prefer, you can choose to use some of the money to build an addition onto your home or make other home improvements. This money can also be received as cash for personal use. Most programs that are offered have terms anywhere from 5 to 30 years. The minimum loan amount that is offered in most circumstances is $15,000.

Zero Down Mortgage - Zero down payment loans are designed to offer home ownership opportunities to borrowers with good credit but who lack the ability or desire to make a down payment on a home. It provides an option for those who wish to invest their savings in assets other than their home. This type of financing is popular among both first time home buyers and experienced home buyers and you can use 100% financing for a purchase or a refinance. The fixed rate loan is also available for construction and home improvement of an owner occupied primary residence.

Jumbo Mortgage Loan - Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as 'jumbo' loans. Because jumbo loans are bought and sold on a much smaller scale, they often have a little higher interest rate than conforming, but the spread between the two varies with the economy. Offers 30 and 15 year fixed rate mortgage and competitive ARM products with full document, alternate documentation and limited documentation. Cash out and No cash out refinance are allowable. Single family detached, Condo's, PUD's and single-family second homes can be financed with no prepayment penalty

Buying a Home with Little or No Cash

Loan Program	Features	Best For
Home OpportunitiesSM	Little or no down payment required Flexible income, credit and debt guidelines, including non-traditional credit histories Incentives for public employees	Homebuyers with: High debt ratios and little savings Non-traditional credit histories Homebuyers with: Both documented and undocumented income Experienced financial difficulties Qualified public employees1
No Money Down PlusSM Program	Financing for the entire purchase price of a home, plus closing costs and prepaid expenses, up to a maximum loan-to-value ratio of 103%	Homebuyers who have excellent credit, but little savings Homebuyers who don’t want to liquidate higher-yielding investments for a down payment
3% Solution® Program	Low 3% down payment Larger loan amount for more homebuying power Flexible qualifying guidelines Option to use gift funds for the down payment	Homebuyers with strong incomes, but not much savings Homebuyers who don’t want to liquidate higher-yielding investments for a large down payment
Closing Cost$aver® Program	Little or no out-of-pocket closing costs Available with a wide range of loan products	Homeowners with high debt ratios Homeowners with little equity
VA Loan	No down payment required Flexible income, debt, and credit requirements to help borrowers qualify Down payment and closing costs may be funded by a gift or unsecured loan	Qualified veterans, reservists, active-duty service members2 Homebuyers with low-to-moderate income. Homebuyers with limited savings.
FHA Loan	Low down payment requirements Flexible income, debt, and credit requirements to help borrowers qualify Down payment and closing costs may be funded by a gift or unsecured loan	Homebuyers with limited savings Low-to-moderate income homebuyers

Specialized Loan Programs

Loan Program	Features	Best For
Interest-Only Feature	Low monthly payments consisting only of interest for the first five or seven years Available with 5/1 and 7/1 adjustable-rate loans	Homebuyers looking to increase their short-term cash flow Homebuyers who intend to move or refinance within a few years
Jumbo Loans	Mortgage amounts in excess of the conforming loan limit of $417,0001 Also known as non-conforming loans Typically carry higher interest rates	Homebuyers who need financing to purchase a more expensive property Investment-minded buyers who can afford a large purchase, but want to leverage their assets more effectively
Blended Jumbo Loan	A fixed-rate loan up to the conforming loan limit, combined with an adjustable-rate second mortgage to cover the rest of your home purchase Lower monthly payments than with a regular jumbo loan for the same total amount	Buyers who want a jumbo loan amount with lower monthly payments
Alternative Documentation Options	Alternate documentation options for income, debt, and credit Less hassle for self-employed borrowers or foreign nationals Financing for unusual property types, such as condotels and log or earth homes.	Self-employed homebuyers or foreign nationals who may have trouble with typical mortgage documentation requirements People interested in financing unusual property types
Bridge Loan	Financing to purchase a new home before the existing home is sold More buying power, because existing mortgage payments aren’t considered for qualification	Homebuyers who may not qualify for home financing with the high debt ratios created by two different mortgages
First- and Second-Mortgage Combination	Combines a first mortgage with a home equity loan Home equity loan can supplement down payment funds to bring the loan-to-value ratio down to 80%, bypassing mortgage insurance costs	Homebuyers without enough cash for a large down payment Homebuyers who don't want to liquidate higher-yielding investments for a down payment
Lender-Paid Mortgage Insurance	Bypasses mortgage insurance costs when loan-to-value ratio is more than 80% Money that would have gone to mortgage insurance goes instead to tax-deductible interest payments2	Homebuyers without enough cash for a 20% down payment Homeowners who plan to move or refinance within 10 years