Loan Programs

Conventional Fixed Rate Loan Programs
Fixed Rate Mortgage - A mortgage rate that is fixed throughout the entire term of the loan. The Principal and Interest payments cannot change. Fixed rate mortgages provide the most security for risk adverse individuals. The maximum loan amount is currently set at $417,000.00.

Conventional Adjustable Rate Loan Programs
Adjustable Rate Mortgage (ARM) - A mortgage rate that may change during the life of the loan. All ARMs come with an initial period in which the interest rate cannot change (1, 3, 5, 7 or 10 years). After this period, the interest rate may move up or down depending on the economic conditions at the time of the adjustment. All ARMs are tied to an economic index (MIBOR, US Treasuries, T Bills, etc). As this index moves up or down, your interest will follow this movement. All ARMs have built in CAPS that limit the amount of movement in any one adjustment and movement over the entire life of the loan. Interest rates for ARMs are typically lower than longer term fixed rates. This can be advantageous for people who will not be living in the house longer than the first adjustment period or who need to have a lower initial payment. The maximum loan amount is currently set at $417,000.00

FHA Loans - FHA loans are insured by the Federal Housing Administration, a department of HUD. FHA loans allow for a minimum down payment of 3.5%. FHA loans are perfect for first-time homebuyers or anyone with a small down payment. FHA loans also allow for all of the down payment to be gifted from a family member. Seller concessions can be used to pay for closing costs, pre-paids, etc . up to 6% of the purchase price. The maximum loan amount is based on the County the property is in. In Indiana, the lowest maximum loan amount is currently $271,050 after the down payment. FHA offers both fixed and adjustable rates.

VA Loans - VA loans allow a qualified veteran or the unmarried widow of a qualified veteran to purchase a home with no down payment and no monthly mortgage insurance payments. Depending on the individual veteran’s disability status, there may be a funding fee of 0%-3.15% of the loan amount. The maximum loan amount is dependent on the Veteran’s entitlement. With full entitlement it is possible for a veteran to purchase a home up to $417,000.00 with no down payment. VA offers both fixed and adjustable rates.

USDA Loans - USDA loans offer 100% financing for qualified individuals on qualified homes. Income is limited based on the number of people living in the house. The current max for 1-4 people is $71,000. The property must also be in a qualifying area. This is determined by USDA and includes most rural areas of Indiana and many areas of populated counties, as well. Your home loan advisor will be able to help with this determination.

Jumbo Loans - Jumbo loans are loans exceed the conforming loan limits. Currently for a 1 unit house this limit is set at $417,000.00. Interest rates for Jumbo products are typically higher than for conforming products. There are still ways of using a combination of a 1st and 2nd mortgage product to take advantage of lower conforming rates and, perhaps, eliminating private mortgage insurance.

FHA 203sK Loans
The FHA 203sk loans allow you to purchase a home and build in up to $35,000.00 (including contingency funds) for repairs, roof, carpet, appliances, etc. This loan cannot be used to change the structure of the house. FHA 203sK loans are priced very competitively and are perfect for a person who loves a house but wants to make some changes. This product can also be used to refinance your current home and make improvements.

Contact us to learn more about First Republic Mortgage Corporation's loan programs.