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R-B Financial Mortgages offers a variety of loan programs to meet your needs. We work with the leading lenders in the industry to provide Conventional Mortgages, FHA Mortgages, USDA/RD Mortgages, VA Mortgages, New Construction and Rehabilitation Mortgages. The information below is to give clients a general overview of the programs. There are additional programs under these categories that may benefit you. Speaking with an experienced R-B Financial professional is the best way to find the product that is right for you.

 

 
Conforming Conventional
FHA Mortgage
USDA Mortgage
VA Mortgage

Conforming Conventional

A conventional mortgage is not insured by the federal government. This means that due to the risk the lender guidelines are a little more strict. For example, it may require a higher down payment or a lower debt to income ratio. Like other types of mortgage, the interest rate that you pay is based on the prime mortgage rate, your down payment and your credit score. A conventional mortgage could have a fixed rate or a variable interest rate. Fixed rate mortgages have terms ranging anywhere from 8 Years to 30 years. 

Down Payment

Conventional mortgages require a minimum down payment of 3%. Even though 3% is the minimum down payment 5% is recommended to get a better interest rate and lower private mortgage insurance. By putting more money down you are able to get a better interest rate and lower mortgage insurance. 

Advantage of Conventional Mortgage

When you make a down payment of less than 20 percent of the value of the home, lenders will require you to purchase private mortgage insurance if you have a conventional mortgage. If you have another type of mortgage, you have to pay a mortgage insurance premium. These are similar fees, but in the conventional mortgage, you do not have to pay this once you reach 20 percent equity in your home.


FHA Mortgage

An FHA mortgage is insured by the federal government. This program is typically used for borrower's who have lower credit scores and/or higher debt to income ratios. The interest rates on Government programs is typically lower than those of conventional products. There are however a couple of trade offs to getting a lower interest rate. For instance FHA requires an Up Front Mortgage Insurance Premium of 1.75% that can be financed into the loan.

Down Payment

FHA Mortgages require a minimum down payment of 3.5% down. Putting more down may increase eligibility for borrower's with lower scores. However, on FHA products the interest rate is not as affected by the down payment. Mortgage Insurance premiums are required on FHA products regardless of the down payment and do not fluctuate as much as conventional products.

Advantages of FHA

FHA mortgages allow for a lower credit score than it's conventional counterpart. While allowing for lower scores FHA products also provide a lower interest rate. FHA loans also allow sellers to pay up to 6 percent of the loan amount to cover buyers' closing costs compared to 3% on Conventional.


USDA Mortgage

 This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. This program requires that borrowers be able to:

  • Meet income-eligibility
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria


  • VA Mortgage

     

    The U.S. Department of Veterans Affairs (VA) offers mortgage programs for active and retired military personnel, including individuals in the reserves and national guard. This program allows borrowers to put 0% down while also offering lower rates when compared to conventional financing. Monthly mortgage insurance is not charged however a one time VA Funding fee may be charged. This is a great home loan program used to help support the men and women who serve our country.




     This page is meant to be a general overview to guide borrowers and does not convey all of the requirements for these programs. To learn more about these programs please contact one of our experienced loan officers.


    Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $10,840. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors.