Compare All Loan Options

Before beginning your home search, it’s important to have an understanding of your mortgage options. As you shop for your new home, confidently knowing that you qualify for the homes that you view eliminates stress and permits you to enter contract negotiations with strength. Park Cities Mortgage can help you make the process stress-free so that you can focus on what really matters, finding the right home for you.

Generally, there are six unique loan types you can choose from, and Park Cities Mortgage offers them all. Use the information below to learn what mortgage options might be right for your situation, and seek the guidance of a Park Cities Mortgage loan officer to guide you through the additional details of each option.

Fixed Rate Loans

Fixed rate mortgage loans have a single, consistent interest rate for the entirety of the loan term. Interest rates on these loans cannot be changed except through a refinance.

Advantages:

• Consistent interest rate throughout the loan
• Predictable monthly payments
• Ideal for homeowners who do not intend to move within a few years
• Down payments as low as 3 percent

Adjustable Rate Loans

Adjustable rate mortgage loans – also called ARMs – have interest rates that can fluctuate throughout the life of the loan at certain established periods. Rates on ARMs typically start low, but can increase depending on changes in an established index. The lower initial interest rate is usually for a term of three to five years.

Advantages:

• Lower interest rates at the outset
• Lower initial monthly payments
• Ideal for short-term homeowners or those who plan to refinance
• Down payments as low as 5 percent

FHA Loans

FHA loans are mortgages backed by the Federal Housing Administration (FHA). They’re designed to help lower- and moderate-earning households purchase property, and they typically offer lower down payment requirements and less stringent underwriting qualifications compared to other mortgage options.

Advantages:

• Low down payments (as low as 3.5 percent)
• Competitive interest rates
• Lower credit scores and high debt-to-income ratios allowed
• Up to 6 percent seller contributions allowed

VA Loans

VA loans are mortgages backed by the U.S. Department of Veteran Affairs (VA). They are designed for military veterans, both former and current. The down payment and qualifying guidelines are some of the most liberal in the industry because the purpose is to reward our veterans for their unselfish service.

Advantages:

• Up to 100 percent financing
• Competitive interest rates
• No private mortgage insurance required
• Up to 4 percent seller contributions allowed
• Competitive jumbo options available

Jumbo Loans

Jumbo loans are loans that exceed the Fannie Mae and Freddie Mac conforming loan limit of $726,200 for a one-unit single-family home. Because of the unique underwriting guidelines, this mortgage option requires more specific mortgage experience, which everyone on the Park Cities Mortgage team possesses.

Advantages:

• Fixed and adjustable rate options
• Financing for high-value properties
• Available for large loan balances

USDA Loans

USDA loans – also called rural housing loans – are backed by the U.S. Department of Agriculture (USDA) and are designed to encourage homeownership in more rural areas of the country. Buyers must purchase a property in a designated rural area to qualify.

Advantages:

• Up to 100 percent financing
• Flexible credit underwriting guidelines
• Liberal seller closing costs contributions allowed