Loan Types
At ALLIED Mortgage Group we offer more than just one loan product because not everyone can be fit into one box. We have a vast selection of mortgage loan types to meet just about everyone’s needs. Below are some details of the loans we offer:
FHA Mortgages:
FHA Mortgage loans have been helping millions of Americans realize the dream of home ownership since the 1930′s. FHA offers low down payment options for purchases as well as generous LTV options for refinances. At Allied Mortgage, we underwrite and endorse FHA loans right in-house. We offer very flexible credit guidelines and common sense underwriting. Our approach to FHA mortgages is the Old Fashion approach that was intended. FHA mortgages have two types of government insurances. One is the financed MI (mortgage insurance). This is presently a 1% fee that is actually financed into your loan, so it is stretched out over the term of the loan. The second is a Monthly Mortgage Insurance gets paid monthly in your mortgage payment. Presently this amount is 1.15% per yer of your loan amount (divide by 12 to calculate the monthly portion). On lower LTV loans and shorter term loans the mortgage insurance is reduced. By having these two form of mortgage insurance FHA/HUD is able to continually and confidently help us finance your home!
VA Mortgages
VA or Veterans Affairs proudly offers our eligible service workers an amazing loan program. VA mortgages allow for up to 100% financing. That is NO money down in many cases. The VA helps lenders offer such incredible terms with Guarantee Fee that is financed into the loan. The fee depends on various factors about the applicant. Since the FEE is a Financed Funding Fee it does not have to be paid out of pocket. The funding fee is similar to FHA’s financed portion of the mortgage insurance. But VA and FHA still differ on the monthly mortgage insurance. With a VA loan there is NO MONTHLY Mortgage Insurance. This is a great feature that helps our veterans qualify for a low payment. Allied Mortgage Group is Proud to offer our veterans great rates on VA loans. Allied Mortgage Group would like to thank all of the men and women who have served our country and supported our freedom!
USDA Loans
USDA is another government back mortgage. This loan is commonly referred to as RURAL HOUSING loans. But don’t let the term RURAL fool you. You would be surprised of the large geographical regions that qualify for this loan. In Delaware, much of Middletown and further south all fit this product. In Pennsylvania, the western part of Chester County and outside of the major 5 county Philadelphia region have many territories that qualify also! New Jersey has nice size pockets of qualifying regions. USDA mortgages are similar to VA when it comes to the Mortgage Insurance or Funding Fee. There is NO Monthly Mortgage Insurance (presently- this may change very soon). The funding fee is financed over the life of the loan and you can financed 100% of the purchase price (more in rare cases). This is another tremendous No Money down mortgage! There are restrictions on where the property is located and also there are limits to how much the household applicants can earn. The limits are very generous. One of the best parts about this loan is that you do not have to be a first time home buyer to get the maximum financing. The only restriction is that you cannot have another mortgage at the time of closing. The Wilmington Branch of Allied Mortgage group is highly trained and versed on this great product.
Conventional Mortgages
A conventional loan is commonly referred to as a FannieMae (FNMA) or FreddieMac (FHLMC) mortgage. But there is really more to it than just those two housing agencies. Any loan that is not government backed (like USDA, FHA, VA) and is of “conforming loan limits” (rule of thumb is $417k) can be classified as conforming. But with the collapse of the private mortgage companies in 2007-2009 FNMA and FHLMC have been the only real backers of Conventional Loans lately. Conventional loans can provide great terms on mortgages. There are no income or geographical restrictions like USDA or other products. If you have 20% in equity on a refinance or in down payment on a purchase then you will not need mortgage insurance (PMI). If you need PMI on your conventional loan your lender will obtain it through Private Mortgage Insurers (Private, P in PMI). PMI companies offer different but similar rates on the mortgage insurance premiums. Allied Mortgage will obtain the lowest premium on your loan through the PMI provider. Conventional loans have lots of bumps and swings in rates because the guidelines are very credit score and equity driven. Some conventional loans can be a half of a percent (0.5%) higher than other loans with different credit scores. Allied mortgage will help you see all of the possible loan products you can qualify for and then help you pick the best loan for YOU!
JUMBO Mortgages
Allied Mortgage is one of the few lenders left that offers tremendously low rates and flexible terms on JUMBO Mortgages. Our Jumbo loans can go up to $5 Million! We offer ARMS and FIXED rate terms. If your loan is over $417,000 then you may need a JUMBO loan. Talk to a mortgage specialist today to check out our great rates on this product.
Now you know some of the products but there’s more!!! What about the terms????
ARMS or Adjustable Rate mortgage- ARMS have been around since the beginning of the mortgage. the A in ARM stands for Adjustable so your note rate can change from time to time. This is not as scary as it sounds. The ARM loan generally has a fixed rate period, such as 1, 3, 5, 7, 10 years. So the loan will NOT adjust during the term of the fixed rate period. Since your loan has the potential to go UP or down over time lenders generally offer lower rates on ARMS than on Fixed Rate mortgages (FRMs). ARMS may be a valuable tool for your home financing and save you big money! Why take a higher Fixed rate if you only intend to live in a home for a few years? This is a great example of when an ARM may be the right loan for you. Talk to your Allied mortgage advisor to see if this loan is right or not for your situation.
FIXED RATE MORTGAGES (FRMs)- The good old Fixed Rate Mortgage… Safe and secure for the life of the loan. With a FRMs your rate will be the same from day one to the last day of the term of your loan. Fixed rate mortgages come in 5, 10, 15, 20, 30 and even 40 year terms. This means your loan is amortized over the term selected. Fixed rate mortgages is something that is not even available in most parts of the world! The majority of the world has only one loan term choice, ARM. If you are in a scenario where you know you intend to live in your home for a long while then a fixed rate loan is right for you. The most common loan is a 30YR FRM. The amortization of a loan over thirty years is steady but steep! You tend to pay back double over the life of the loan. BUT DON’T worry, thanks to Uncle Sam your interest is tax deductible! Presently with mortgage rates at all time lows, many homeowners are trying to refinance into a 15yr mortgage and dramatically reduce the amount of interest they pay. This is a great option if you can afford it! Allied offers all terms described on mortgages so you have plenty to choose from.
Allied mortgage offers loans in Pennsylvania, New Jersey and Delaware from our mortgage center located in Wilmington Delaware. Mortgages offered in Delaware, Chester, Philadelphia, Montgomery, Bucks, and all counties in PA. We service New Castle, Kent and Sussex counties in Delaware. Allied offers mortgages in the entire state of New Jersey, Gloucester, Salem, Ocean, Mercer, Cape May counties (just to name a few)