Home Buying Programs (Purchase Loans) and Refinancing Mortgage Loans

Fixed-rate mortgage Adjustable-rate mortgage (ARM)
Features Features
  • Your interest rate and monthly principal and interest (P&I) payments remain the same for the life of your loan.
  • Available in a variety of loan term options.
  • You may be able to add extra features such as a temporary payment reduction.
  • Your interest rate and monthly principal and interest (P&I) payments remain the same for a defined initial period, then adjust annually when that initial period is over.
  • Loans available in a variety of longer terms.
  • Includes an interest rate cap that sets a limit on how high or how low your interest rate can go.
Benefits Benefits
  • Predictable monthly P&I payments allow you to budget more easily.
  • Protection from rising interest rates for the life of the loan, no matter how high interest rates go.
  • May be a good choice if you plan to stay in your home for a long time.
  • Typically ARMs have a lower initial interest rate than on a fixed-rate mortgage.
  • The interest rate cap limits the maximum amount your P&I payment may increase or decrease at each interest rate adjustment and over the life of the loan.
  • May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years.
Considerations Considerations
  • The overall interest you pay is higher on a longer-term loan than on a shorter-term loan.
  • On a shorter-term loan, the monthly P&I payment is typically higher than on a longer-term loan.
  • Monthly principal and interest payments may increase or decrease when the interest rate adjusts.
  • Your monthly principal and interest payments may change every year after the initial fixed period is over.

Buying a Home With a Low Down Payment

FHA Loans

Federal Housing Administration (FHA) loans provide fixed-rate and adjustable-rate financing with down payment options as low as 3.5%.

  • May allow you to use a gift or grant for all or a portion of down payment and closing costs.
  • Require less cash upfront, but you typically have to pay FHA mortgage insurance premiums.
  • Let you qualify with a co-applicant, even if the person doesn’t live in the home.
  • You can typically only have one FHA mortgage at a time.

VA Loans

Department of Veterans Affairs (VA) loans provide fixed-rate and adjustable-rate financing on primary residences for veterans and other borrowers who meet the eligibility requirements of the VA program. Talk to a home mortgage consultant for details.

  • Offers low- and no-down payment options, and do not require monthly mortgage insurance.
  • Allows closing costs to come from a gift or grant.
  • Requires a one-time VA funding fee that can be financed into your loan or paid in cash at closing.
  • May provide up to 100% financing with a maximum loan amount of $484,350 (higher amounts possible in high cost areas). Customers must meet all eligibility requirements for the VA program. Please discuss with your Ameritrust Capital Mortgage consultant to review current VA eligibility requirements.

Guaranteed Rural Housing Programs

The Guaranteed Rural Housing Program, provided by the U.S. Department of Agriculture (USDA), helps low-to-moderate income buyers in rural areas become homeowners.

  • Provides financing of up to 100% with no required down payment.
  • Offers long-term fixed-rate terms, helping to keep payments predictable over the life of the loan.
  • You may be able to finance closing costs, legal fees, and other prepaid fees.
  • You’ll pay a one-time guarantee fee and an annual fee to the USDA’s Rural Development program.

Cash-Out Equity from your Home for Home Improvements, Debt-Consolidation or Discretionary Funds

How a Home Equity Loan Works: You can use one of two options when you borrow with a Home Equity Loan. You can take a large lump sum of cash up front and repay the loan over time with fixed monthly payments. Your interest rate will be set when you borrow and should remain fixed for the life of the loan. Second Option is a Home Equity Line of Credit (HELOC), which is a close ended Line Of Credit with a Variable Rate subject to market fluctuations.