Loan Programs | Churchill Mortgage

What is a loan program?

A home loan program is a financial service provided by banks, credit unions, and other lending institutions to help individuals purchase residential properties. These programs offer borrowers the necessary funds to buy a home, with the understanding that the loan will be repaid over time, typically through monthly payments. Home loan programs come with various terms, interest rates, and eligibility criteria, tailored to suit different financial situations and needs.

They are essential tools for making homeownership more accessible and affordable, enabling people to invest in real estate without having to pay the full purchase price upfront.

The Purpose of this Guide

Exploring the real estate market is like a treasure hunt! Each new listing is a potential gem waiting to be discovered. Whether you're looking for a cozy cottage or a sleek modern apartment, the excitement never ends.

Introduce you to the types of home loan programs available
How to choose the right home loan program
Answer frequently asked questions about loan programs

Whether you've got a loan program in mind, or are still shopping around, you can always connect with a Churchill Home Loan Specialist to discuss your options.

Conventional Programs

Read our guide to Conventional Home Loan Programs

Principal and interest payments won’t change for the life of loan, you can pay off your mortgage at any time without penalties, you can typically avoid Private Mortgage Insurance (PMI) with a 20% or higher down payment, and primary homes can be purchased with 3% down.

Pro: Easier to qualify, primary homes can be purchased with 3.5% down, fixed rates are available, and down payment assistance programming is available. You also only need a small amount of cash to close on your home.

Con: You’ll need a credit score of at least 620 and a debt-to-income ratio no higher than 50% (and lower so you can get better loan terms).

Conventional Loan Programs

Government Programs

Read our guide to Government Home Loan Programs

These government-insured programs typically have stricter guidelines but have looser requirements which makes them a great option for first-time home buyers and lower-income families. The Federal Housing Administration insures FHA loans and VA loans are backed by the U.S. Dept. of Veteran Affairs.

Government Loan Programs

FHA Loan Programs

VA Loan Programs

Non-Conforming Programs

Read our guide to Non-Conforming Home Loan Programs

A non-conforming loan program is a type of mortgage that does not meet the standard guidelines set by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac. These loans typically exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA) or have unique underwriting requirements that fall outside the conventional criteria.

Non-Conforming Loan Programs

Non-QM Programs

Read our guide to Non-QM Home Loan Programs

A non-QM (non-qualified mortgage) home loan program is a type of mortgage that does not meet the standard guidelines set by the Consumer Financial Protection Bureau (CFPB) for Qualified Mortgages (QM). These guidelines were established to ensure that borrowers have the ability to repay their loans, with features like limits on debt-to-income ratios, restrictions on certain loan features, and requirements for verification of income and assets.

Non-QM Loan Programs

No Score Programs

Read our guide to No-Score Home Loan Programs

If you have been working hard to pay off your debt and no longer have a credit score as a result of this, a no score loan might be a good option for you. At Churchill Mortgage, we can walk you through the process of getting a no score home loan that can be paid off quickly. This allows you to return to your debt-free lifestyle as soon as possible.

No Score Loan Programs

Choosing the Right Home Loan Program

Choosing the right home loan program is crucial for a successful and enjoyable home-buying experience. The right loan program can save you money, offer flexibility, and provide peace of mind. Here are the top four reasons why selecting the perfect home loan program is so important:

Financial Savings: The right loan can lower interest rates and reduce monthly payments, saving you thousands over the life of the loan.
Flexibility: Different loan programs offer various repayment terms and conditions, allowing you to choose one that best fits your financial situation and long-term goals.
Qualification Ease: Some loan programs have specific eligibility criteria that can make it easier or harder to qualify, impacting your ability to secure financing.
Peace of Mind: Knowing you have a loan program that meets your needs provides confidence and reduces stress, making your home-buying journey more enjoyable.

(FAQ)

Frequently Asked Questions about Home Loan Programs

Navigating the world of mortgages and home loan programs can feel overwhelming, but understanding the basics can make the process much smoother. To help you on your journey to homeownership, we've compiled a list of frequently asked questions about mortgages and home loan programs.

Whether you're a first-time homebuyer or looking to refinance, these questions and answers are designed to provide you with the knowledge and confidence to make informed decisions about your home financing options.

What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?

A fixed-rate mortgage (FRM) has an interest rate that stays the same for the entire term of the loan, which means your monthly payments remain consistent. This is great for those who prefer stability and predictable budgeting.

On the other hand, an adjustable-rate mortgage (ARM) has an interest rate that can change periodically, typically based on an index that reflects the cost to the lender of borrowing on the credit markets.

While ARMs usually start with lower interest rates compared to FRMs, your monthly payments can fluctuate, which might be a good option if you plan to move or refinance before the adjustment period kicks in.

What are FHA loans and who can benefit from them?

FHA loans are mortgages insured by the Federal Housing Administration (FHA). They are designed to help lower-income borrowers and first-time homebuyers qualify for a loan. FHA loans typically have lower down payment requirements (as low as 3.5%) and more flexible credit score criteria compared to conventional loans. They are a great option if you have a limited credit history or a lower credit score but want to achieve homeownership.

How much of a down payment do I need for a home loan?

The down payment required for a home loan can vary widely depending on the type of loan and the lender. For conventional loans, the typical down payment ranges from 5% to 20% of the home's purchase price. FHA loans require a minimum down payment of 3.5%, while VA and USDA loans may offer options with no down payment required at all. It's always a good idea to save as much as you can for a down payment to reduce your loan amount and monthly payments.

Can I get a home loan with less-than-perfect credit?

Yes, you can still get a home loan with less-than-perfect credit, although your options might be more limited and the interest rates may be higher. FHA loans are known for their more lenient credit score requirements. VA loans also have flexible credit standards for eligible veterans and military members.

It's important to shop around and consider working with a mortgage broker who can help you find the best options for your credit situation.

What are closing costs and how much should I expect to pay?

Closing costs are fees and expenses you need to pay when finalizing your mortgage, and they can include things like appraisal fees, title insurance, attorney fees, and prepaid costs such as property taxes and homeowners insurance. These costs typically range from 2% to 5% of the home's purchase price. It's crucial to budget for these expenses when planning your home purchase.

After talking with your Churchill Home Loan Specialist, they will provide a Loan Estimate early in the process, which will give you an idea of what your closing costs will be. Additionally, some lenders and loan programs offer options to roll closing costs into the mortgage or cover them as part of the loan agreement.

Disclaimers:

Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.

We strive to provide comprehensive information about our home loan programs; however, it is important for users to understand that not all programs are available at all times or in all locations. Each loan program may have specific prerequisites or requirements that must be met in order to qualify or become eligible.

While we make every effort to ensure the accuracy and currency of the information on our website, we cannot guarantee that a particular loan program will be available when you apply. Additionally, meeting the listed criteria does not guarantee qualification for any program.

Please note that availability and eligibility for our home loan programs are subject to change without notice. We recommend contacting us directly to verify the current status and specific requirements of any program you are interested in before making any decisions based on the information provided on our website. Our team is here to help you navigate your options and find the best loan program to meet your needs.

Home Loan Programs

What is a loan program?

The Purpose of this Guide

What kinds of loan programs are there?

Conventional Programs

Government Programs

Specialty Programs

Investor Programs

Construction Programs