With the variety of loan programs we have available, buying a home is still within your reach and more affordable!
Below is a partial list of the most common programs offered by Kings Mortgage Services, Inc. If you don't see what you're looking for, please contact us. We look forward to discussing your home loan needs!
CONVENTIONAL - Traditional programs that usually require a minimum of 3% down with 620 credit score -offers competitive interest rates.
JUMBO - For loan amounts over the Conventional loan limits of $484,350.
FHA - Backed by the U.S. Dept. of Housing & Urban Development, this mortgage offers the borrower the ability to put as little as 3.5% down along with more flexible credit, income and asset requirements. Loan Amounts vary by County.
VA - Guaranteed by the U.S. Dept. of Veterans Affairs, these loans require no down payment for loans up to $484,350. Minimum military service requirements are necessary to be eligible for a VA loan.
USDA - The Rural Home Program provides 100% financing and is available in towns with populations under 25,000. Sales Price and Income Limits apply.
CONSTRUCTION - With this loan we will set up your construction loan and guarantee the final permanent financing.
INVESTORS - We offer programs for borrowers wishing to finance rental properties. Ask about the Home Path Program available for Fannie Mae properties.
What are advantages/disadvantages of other loan types? (not all currently available)
Fixed Rate Mortgages - 'Fixed' means that your payment and rate remain the same for the entire life of the loan.
30 year fixed
20 year fixed
15 year fixed
10 year fixed
- Monthly payments are fixed over the life of the loan
- Protected if rates go up
- Can refinance if rates go down
- Interest rate is higher in return for the security of fixed monthly payments.
Adjustable Rate Mortgages - 'Adjustable' means the interest rate will change (annually or semi-annually) either up or down depending on the movement of future interest rates.
1 year ARM
6 month ARM
1 month ARM
- Lower initial monthly payment
- Rates and payments may go down if rates improve
- May qualify for higher loan amount
- Income levels may keep up with any increase in monthly payment
- More risk
- Payment may increase if rates go up
Fixed Period ARM - These ARMs are fixed for a specific time period (for example, 10, 7 or 5 years) then adjust annually for the remainder of the loan term.
10/1 ARM
7/1 ARM
5/1 ARM
3/1 ARM
- Stability of low fixed rate for a short time
- Lower initial monthly payment
- May qualify for higher loan amount
- Excellent program if you plan to own your home no longer than 3-10 years
- Potential increase in interest rate and payment if you still own the home after the Fixed rate period.
Option ARMs - Complex yet flexible ARMs that let you determine how much you pay each month. Interest rate adjusts monthly but payment only adjusts annually. Minimum payment is based upon the initial start rate.
1 Month MTA
3 Month MTA
1 Month COFI
- Four flexible payment options
- Ability to manage monthly cash flow
- Minimizes house payment freeing up cash to pay off other debt
- Low interest rates
- Payment may increase if rates go up
- Higher down payment
- Potential for negative amortization
- May have a prepayment penalty
Balloon Mortgages - Balloons are fixed for either 5 or 7 years then become all due and payable, at which time you must either pay off the loan, refinance or exercise the conversion option, if offered, to convert the term to 30 years.
7 year
5 year
- Stability of low fixed rate for a short time
- Lower initial monthly payment
- Many balloon mortgages offer the option to convert to a fixed rate loan after the initial 5-7 year term.
- Rates may be higher at the end of the initial fixed period
- Risk of not being able to refinance or make balloon payment when due
Interest Only - Monthly payment is based only on the interest portion for a fixed period of time.
Fixed Rate
ARMs
- Lower monthly payments
- May qualify for higher loan amount
- No reduction to principal balance
- Adjustable rates may go up
SubPrime ARMs - These ARMs are fixed for the first 2 or 3 years and then convert to a 6-month adjustable rate for the remaining term of the loan. Designed for borrowers who have had credit problems and don't meet the credit standards of conforming loans.
- Lower initial monthly payment
- Allows you to buy your home now while giving you 2-3 years to repair and rebuild your credit
- Higher rates than Conforming Programs
- Payment may go up if rates increase
- May have a prepayment penalty
First Time Buyer Programs - Designed to promote homeownership, these programs offer assistance with your down payment and, if you own your home long enough, you won't need to pay it back.
Fixed Rate
- Easier to qualify
- Low or No down payment
- Lower interest rate
- Subject to limits on income levels and sales price
- May be subject to repayment if you sell the home too early
Stated Income and No Income Programs - Specialized loan programs that include low documentation and even no documentation - all depending on what you're willing and able to provide.
Fixed Rate
ARMs
- Income is not verified
- Less paperwork
- Easier to qualify
- Higher rates and monthly payment
- Higher down payment
Home Equity Line of Credit - HELOCs are reusable credit lines secured by the equity in your home.
ARMs
- Lower initial interest rate
- Payment is based on your outstanding balance
- Flexible access to funds
- Interest may be tax deductible
- Rates and payments can increase
- Home equity is used as collateral
Home Equity Fixed Loan - A second mortgage with fixed monthly payments for the entire term of the loan.
Fixed Rate
- Fixed payments
- Protected if rates go up
- Interest may be tax deductible
- Higher initial interest rate than HELOCs
- Home equity is used as collateral
Each situation is different and we welcome the opportunity to discuss your individual needs and goals.
Our goal is to find a loan that's perfect for you.
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