When it comes to owning a home, choosing the best mortgage option that is suited to your lifestyle and needs is just as important as choosing what home to buy. In 2018, 78% of homes were purchased with a mortgage.
A1 Mortgage offers Kansas City homeowners many options to choose from so they are comfortable and confident with their decision.
The Freedom Loan
Exclusive to A1, The Freedom Loan allows for you to have the ability to pay off your home in less than 10 years.
With loan amounts up to $2,000,000, you are able to pay off your house faster while paying your principle first. With this loan, it’s not about the interest rate, it’s about the interest paid. Because it pays off in less time, it pays the lowest amount of interest to your banks.
The Freedom Loan is a great choice for responsible homeowners with good credit as well as equity in their home.
Conventional
Also known as a conforming loan, a conventional mortgage loan follows the guidelines set by government-sponsored enterprises Fannie Mae and Freddie Mac.
With terms ranging from 1 to 30 years, a conventional loan is offered in 4 units:
- 1 unit $424,100
- 2 unit $543,000
- 3 unit $656,350
- 4 unit $815,650
Like a traditional loan, financing of a purchase or refinance goes up to 97% of loan value where cash-out financing goes up to 80% of the loan value.
VA Loans
VA Loans have little to no down payment options and do not have a mortgage insurance requirement. Compared to other mortgage options, these loans have lower monthly payments.
With a loan amount up to $1,000,000 and terms ranging from 1 to 30 years, there are zero closing costs that come with this loan. Up to 100% of loan value is offered for financing as no appraisal is required.
VA Loans helps Servicemembers, Veterans, and eligible surviving spouses become happy homeowners.
FHA
By offering down payments as low as 3.5%, FHA mortgages can include the use of gift funds. Homeowners do not need to meet low-to-moderate income requirements to qualify for this loan.
Loan amounts are offered in 4 units, depending on the metro or non-metro features:
Metro –
- 1 unit $308,200
- 2 unit $394,550
- 3 unit $476,900
- 4 unit $592,700
Non-Metro –
- 1 unit $275,650
- 2 unit $352,925
- 3 unit $426,600
- 4 unit $530,125
For purchase financing going up to 96.5% of the loan value and refinancing reaching 97%, terms are offered from 1 to 30 years.
FHA Loans also include a $100 cash investment program on purchase.
USDA
Backed by the USDA, a USDA Loan is eligible for homebuyers in rural and suburban areas. As a special type of zero down payment mortgage, these homebuyers can access it through the USDA Loan Program.
There is a strict term of 30 years for this loan while the loan amount ranges based on income. Financing for a USDA Loan includes 100% for purchasing or refinancing.
Jumbo Loan
As seen on our site, Jumbo Loan Financing is, “available up to 97% Financing of your home’s value with no mortgage insurance for a purchase or refinance with no cashback.”
This also means that there is up to 80% on a cash-out refinance.
Jumbo Loans have a term from 1-30 years with a loan amount ranging from $424,100 to $2,500,000.
Unlike conventional loans, Jumbo Loans are not eligible to be guaranteed or securitized by Fannie Mae and Freddie Mac.
Choosing what mortgage option fits best for you is an important decision and us at A1 Mortgage are here to help. Contact us today.
