Definition:

A rehabilitation loan is a loan used by homeowners to improve the safety and quality of their homes.
Advantages:

• Better looking home
  
• Better quality home
  
• Safer home

Items that may qualify for a home rehabilitation loan:

• Siding
  
• Windows
  
• Roofing, gutters, and downspouts
  
• Replacing floors, tiling, and/or carpeting
  
• Detached garage
  
• Addition of an attached unit
  
• Reconditioning or replacement of plumbing, heating, air conditioning and electrical systems
  
• Structural alterations, reconstruction and renovation
  
• Modernization and improvements to the home's function
  
• Energy conservation improvements
  
• Major landscape work and site improvement
  
• Installation of a well and/or septic system
  
• Improvements for handicap accessibility

Definition:

A reverse mortgage is sometimes referred to as a "lifetime mortgage." A reverse mortgage is a loan available to seniors to release the home equity as one lump sum or multiple payments. The obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves, for example to go into a nursing home or some other place to live. In a reverse mortgage, a homeowner makes no payments and all interest is added to the lien on the property. If a property has increased in value after a reverse mortgage has been taken out, it is possible to acquire a second (or third) reverse mortgage over the increased equity in the home. However, the reverse mortgage must be the only mortgage on the property.

Purposes:

• Supplement monthly income
  
• Home Improvements
  
• All credit is accepted

Requirements:

• Must be at least 62 years old
  
• All income is accepted
  
• All credit is accepted

The amount of money available to the homeowner is determined by the factors listed below.

Proceeds:

• Appraisal value of the property
  
• Repairs that need to be made
  
• Any liens on the house
  
• Interest Rate
  
• The age of the senior applying for the reverse mortgage
  
• How the payment is taken (line of credit, lump sum, or monthly payments)

Each situation is different. Please call us or stop by our office. The sooner you come by, the sooner we can help you!

Definition:

Refinancing is replacing an existing debt obligation with a debt obligation bearing different terms. Home mortgages are the most common loans that are refinanced. Refinancing can alter the monthly payments owed on the loan either by lowering the loan's interest rate, or by altering the term to maturity of the loan. Better lending conditions may reduce overall borrowing costs. Refinancing is most often needed to improve overall cash flow.

Reasons:

• High interest mortgage
  
• Monthly bills are too high
  
• Debt to income ratio is too high
  
• Need cash fast
  
• Get a fixed rate if the current rate is an adjustable rate

Advantages:

• Reduce interest rates
  
• Pay off other debts
  
• Extend repayment time
  
• Reduce the periodic payment obligation
  
• Reduce or alter risk
  
• Raise cash for investment or consumption

 

Definition:

Debt consolidation is a means of taking out one loan to pay off other loans and consolidate your debt into one low monthly payment.

Payments to consolidate:

• Credit card payments
  
• Student loans
  
• Car payments
  
• Mortgages

Advantages:

• Secure a lower interest rate
  
• Secure a fixed interest rate
  
• Convenience of having only one payment
  
• Pay off debt sooner
  
• Incur less interest over time

Definition:

A conventional loan is a loan that is not guaranteed or insured by the federal government under the Veterans Administration(VA), the Federal Housing Administration(FHA) or the Rural Housing Service(RHS) of the U.S. Department of Agriculture. However, a conventional loan can follow the guidelines of Government Sponsored Enterprises (GSE's) such as Fannie Mae and Freddie Mac. Conventional loans are either conforming or non-conforming. Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Non-conforming loans don't meet Fannie Mae or Freddie Mac qualifications, but are still considered conventional.

Requirements:

• Established guidelines for credit scores
  
• Established guidelines for income
  
• Minimum down payment

Advantages:

• Fewer obstacles to get approved
  
• Build home equity faster

Definition:

A loan for purchase is a loan taken out by a person for the purchase of a home. The loan can be used for the purchase of new construction homes or for existing homes.

Advantages:

• Get the money you need
  
• Make the purchase fast
  
• Competitive interest rates

Definition:

Jumbo mortgages are mortgages with a loan amount above the industry-standard definition of conventional conforming loan limits. This standard is set by the two largest secondary market lenders, Fannie Mae and Freddie Mac. Jumbo mortgages apply when agency limits don't cover the full loan amount. The limit of a jumbo loan is $417,000 in Kansas and Missouri.

Advantages:

• Fast closings
• Up to $1,000,000 a year in federal tax deductions
  
• No need to have tons of cash to buy your dream home

Steps to qualify for a jumbo loan:

• A credit score of 680 or higher
• Steady employment history
  
• Consistent or increased income for past two years
  
• Chapter 7 bankruptcies must be at least two years old with good to excellent credit ratings for the consecutive following years
  
• Chapter 13 bankruptcies on record must be in good standing with trustee permission to enter into new debt
  
• Foreclosures must be at least three years old
  
• FHA mortgage payment cannot exceed 31% and total debt-to-income ratio of 43% of your total monthly gross income
  

Definition:

A home improvement loan is a loan that is used to finance improvements on your house or property. The purpose of home improvement loans are to maintain or increase the value of your home. Generally. all actions that can be considered to increase the value of a property in such a way that it increases the expected sales value of the home or the property are considered home improvements.

Advantages:

• Lower interest rate than other ways of financing
• Tax deductible money
• No restrictions as long as it uniforms to local building code requirements

Purposes:

• Seamless vinyl siding
• Windows
• New roof
• Remodeled basements
• Room additions
• Swimming pools
• Landscaping

You can also make energy efficient home improvements. Click on the link below to find out more about energy efficient products for your home.
Energy Efficient Products for Your Home

Definition:

Energy efficiency is using less energy to provide the same level of energy service. A common way to have more efficient energy in your home is to use less heating and cooling by having products that help regulate the temperature of your home.

Reasons to have a more energy efficient home:

• High utility bills
• Inconsistent heating and cooling throughout your home
• Mold, mildew, and musty odors
• Much dust in your home
• Moisture build-up on windows
• Dry air in winter

Advantages:

• Lower utility bills
• Regulate the temperature of your home
• Increased comfort of your home
• Less dust and allergens
• Cleaner windows
• More moist air in home during winter
• Tax credit

Energy Star Rated Products:

• Low E (low emissivity) double paned with argon gas windows
• Low E (low emissivity) triple paned with krypton gas windows
• Premium seamless vinyl siding with form-fit insulation
• Insulated garage doors
• Insulated entry doors
• Professionally installed and properly ventilated roofing products