There are many programs which allow for minimal down payment. Conventional loans require as little as 3% down, FHA loans require 3.5% down (which may all be a gift), VA loans require no down payment (you must be an active member or veteran of the United States armed forces).
PMI stands for private mortgage insurance. All conventional loans which have a loan to value (LTV) of greater than 80% require some form of Mortgage Insurance. Mortgage Insurance may be paid monthly throughout the term of the loan, Lender Paid (rolled into the interest rate), or paid as a one-time up-front fee. After a minimum of 5 years, the lender may be requested to remove the Mortgage Insurance. Either an appraisal will need to be done, or the loan must be paid to less than 80% of the original amount for the lender to consider removing Mortgage Insurance from the loan. In addition, the borrower must have a good on-time payment history. FHA requires two types of Mortgage Insurance, an up-front Mortgage Insurance Premium (MIP) paid at the time of settlement, as well as a monthly premium paid throughout the term of the loan. FHA Mortgage Insurance may not be removed until the loan is paid in full, either through sale of the house, refinance, or paying off the principal. VA loans do not have a monthly Mortgage Insurance Payment. However, VA loans do have an up-front fee called the VA Funding Fee. This fee will be waived for any veteran with a 30% or greater approved disability.
VA Loans and FHA loans are the two primary federal government financing programs. VA loans are a guarantee from the federal government that the U.S. Department of Veterans Affairs will pay a lender in the event the borrower defaults. These loans are only available to current members of the military and veterans with honorable discharge. FHA loans are a guarantee that the Federal Housing Authority will pay the lender in the event the borrower defaults. Everyone is eligible for an FHA loan, but may only have 1 FHA loan at a time under most circumstances.
A fixed rate mortgage is an interest rate that remains the same during the life of the loan. An adjustable rate mortgage is an interest rate that increases or decreases during the term of the loan.
Closing costs are fees needed to complete a real estate transaction. The cost is usually estimated at 4.5% of the sales price.
Expenses include:
Application fees
Credit report
Survey Fee
Flood certification fee
Title search fee
Title insurance
Attorney costs
Recording and transfer costs
Loan preparation fees
Escrow accounts
and more…
We do not have a prepayment penalty. You have option to pay off your loans in part or in full at any time.
We will need various documents depending upon the transaction. We will need at a minimum:
1) Copy of your government issued picture identification,
2) Proof of social security number,
3) Contract (if relevant)
4) Scope of work and contractor’s estimate
5) LLC documents
a) Articles of Organization
b) Operating Agreement
c) Certificate of Good Standing/Clean Hands (whichever applies)
d) Resolution identifying authorized signor
6) Additional documentation as may be applicable.
You will need a minimum of 10% of the sales price regardless of the loan program.
Every deal is unique and we need to first learn about your deal before we can give a quote. Please fill out the contact us form and we will be able to give you an exact quote.
There are no limitations on the amount of deals we can work on with you.
We will consider extensions on a case by case basis, but we are under no obligation to extend your term.
You may get started by filling out the contact us form on our contact us page. You may also call us at 240.463.1969 or reach us by email at kenbrown@metrofundinggroup.com.
We hold over 30 years of experience in the finance and real estate industries. We have a deep understanding of the market. We have personally been involved with hundreds of transactions and have the experience and knowledge to help you be successful.