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Standard and Government Issued Loans

  • These are two of the most popular loan types for buying a home or refinancing your mortgage (including cash-out refinances). Both options are available for conventional conforming loan amounts, jumbo (non-conforming) loan amounts, and FHA or VA programs.

    Fixed-Rate Mortgage

    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 temporary buydowns.


    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.


    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.


    Adjustable-Rate Mortgage


    Features

    • Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 5, 7, or 10 years, then adjust annually.
    • Loans available in a variety of longer terms.
    • Includes interest rate cap that set a limit on how high your interest rate can go.


    Benefits

    • 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 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

    • Monthly principal and interest payments may increase when the interest rate adjusts.
    • Your monthly principal and interest payments may change every year after the initial fixed period is over.


    Talk to a local mortgage expert: Call (919) 785-4333 or email info@fmlending.com

     

    NOTE: Please see program specific pages for details or speak with your local mortgage consultant.
    By refinancing an existing loan, your total finance charges may be higher over the life of the loan.

  • Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans are popular homebuyer choices, but are also available if you're refinancing your mortgage. These loans must meet certain requirements.

    FHA Loan


    Features

    • Available in a variety of fixed-rate and adjustable-rate loan options.
    • May allow you to use a gift or grant for all or a portion of your closing costs.
    • Current FHA homeowners may be able to obtain an FHA streamline refinance.
    • You typically have to pay upfront and monthly FHA Mortgage Insurance premium.


    Benefits

    • Requires less cash upfront for your down payment and closing costs.
    • Available for all income levels.
    • Allows a new buyer to take over the loan if you sell your home (subject to loan approval).
    • Provides reduced paperwork if you're eligible for an FHA Streamline Refinance.
    • A co-applicant can help you qualify even though they do not live in the home.


    Considerations

    • Be certain to ask your home mortgage consultant to help you compare the overall costs of all products, including the monthly and long-term costs and conditions of the required mortgage insurance.
    • You can typically only have one FHA mortgage at any given time.
    • In many instances, you may find FHA to be a more expensive financing option and should be considered after thoroughly evaluating all other product options that meet your credit qualifying and financial needs.


    VA Loan

    • Streamlined refinances
    • Financing for eligible service members
    • One-time VA funding fee typically required


    Features

    • Provides financing for qualified veterans, reservists, active duty personnel, or eligible family members.
    • Available in a variety of fixed-rate and adjustable-rate loan options.
    • Allows closing costs to come from a gift or grant.
    • Gives current VA homeowners the possibility of getting a VA-to-VA refinance.


    Benefits

    • Provides a wide range of rate, term and cost options.
    • Doesn't require monthly mortgage insurance.
    • Provides reduced paperwork if you're eligible for a VA-to-VA Interest Rate Reduction Refinance Loan (IRRRL).


    Considerations

    • You typically pay a one-time VA Funding Fee that can be financed into the loan amount.
    • You can get financing for your primary residence only.


    Talk to a local Government Loan Expert today (919) 785-4333 or email info@fmlending.com or to start an application, click:

     

  • Refinancing into a lower monthly mortgage may help homeowners.

    • Reduce an existing overall mortgage payment
    • Reduce an existing mortgage interest rate
    • Build home equity faster.


    Refinance with confidence.

    • Lender-paid closing costs – No out-of-pocket closing costs for borrowers
    • No appraisal required – Use of original appraised value may help minimize declining value issues
    • No maximum income ratios – Changes in income may have less impact
    • Quicker financing process – Reduced documentation helps facilitate faster loan closing
    • Potential refund of existing FHA upfront MIP


    Contact us for a complimentary mortgage pre-approval to find the right home financing option for you!

     

    NOTE: Please see program specific pages for details or speak with your local mortgage consultant.
    By refinancing an existing loan, your total finance charges may be higher over the life of the loan.

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  • VA Home Loans

    As a servicemember or veteran of the United States military, your duty has been to support and defend our country. FM Lending proudly salutes your commitment, and we stand ready to help you reach your home financing goals with a VA Home Loan.

    With many veterans returning home and in need of housing within the communities we serve, we would like to extend not only the advantages of a VA home loan, but also additional incentives to help lower the cost of purchasing a home:

    Features of a VA Home Loan:

    • No down payment if the purchase price does not exceed the appraised value of the home
    • No monthly mortgage insurance requirement1
    • No prepayment penalty for loans paid off early
    • Closing costs are limited by the VA and may be paid by the seller


    Incentive Offers available through March 31, 2019! Incentive offers may include*:

    • No loan origination fee (up to $1,199 value) through FM Lending
    • $200 off settlement fees through an participating settlement services company2
    • Complimentary appraisal (up to $525 value)3
    • 10% discount off home inspection fee through US Inspect (purchase only)4

     

    FM Lending is not affiliated with any government agencies.

    1. Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee. The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether a down payment is made. The VA funding fee may be financed or paid in cash at the time of closing.

    2. Participating settlement services companies:  RGS Title (District of Columbia, Maryland, Virginia); Sage Title Group (District of Columbia, Maryland, Virginia); Settlement Pros (District of Columbia, Maryland, Virginia); Mid-States title of SWVA (Virginia); Bon Air/Long & Foster Title Agency, LLC (Virginia)

    3. Borrowers are eligible for a lender credit toward closing costs on the Closing Disclosure on a new purchase, secured by a first mortgage or deed of trust (New Loan), subject to qualification, approval and closing with FM Lending. Loan must close within 90 days from the date of loan application. Discount may not exceed $525 for appraisal. Credit coupon must be presented at time of application and all eligibility requirements met no later than 2 days prior to the New Loan closing date. This discount is void where prohibited and is non-transferable, subject to the terms herein, and valid on all complete applications received on or before 03/31/2019.

    4. Home inspection services provided by US Inspect include a 10% discount and a 90-day home inspection guarantee to all Veteran borrowers obtaining VA loan financing with FM Lending. The home inspection guarantee covers items that were inspected by US Inspect and found to be operating properly at time of inspection.  For limitation and exclusions, please see 90 day guarantee terms and conditions.

    *Not all incentive offers are available in all areas. All Incentive offers valid on complete VA home loan applications received between 10/01/2018 and 03/31/2019. Loan must close within 90 days from the date of loan application. Only one discount permitted per New Loan. Contact local Mortgage Consultant for details.

  • THE USDA Guaranteed Rural Housing Loan Program

    Guranteed Rural Housing Loan Program's mission is to assist low to moderate income, rural home buyers achieve thier dream of homeownership.

    FM Lending offers USDA loans to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. These loans must meet certain criteria. As an approved lender, FM Lending offers this financing option and can help applicants purchase a home with affordable interest rates and loan terms.1

    Features include:

    Budget-friendly benefits — No minimum down payment or cash reserve requirements; closing costs and fees may be financed as part of the loan amount up to 100% of the appraised value.2

    Contributions allowed — Interested party contributions up to 6%; gifts and grants are permitted

    Built-in resale advantage — Loans are assumable, with Rural Development (RD) approval, giving qualified future buyers an option to take over your existing interest

    No or low down payment options may not be the best product for all borrowers. Please consult your mortgage consultant to discuss your financing options.

    1. Eligible only for single family, primary residences purchased within the eligible rural areas as defined by the USDA. Credit is subject to approval. Property location, asset and income restrictions apply, and home buyer education may be required.
    2. A guarantee fee is charged and collected at the time of closing and can be paid by the buyer or seller, or financed. Loan amounts may exceed the appraised value of the property (e.g. >100% LTV) to include the amount of a financed guarantee fee. This applies only to loans for which all or a portion of the guarantee fee is being financed into the loan.

  • A jumbo, or non-conforming, loan provides financing for loan amounts higher than the maximum conforming limits set by Fannie Mae and Freddie Mac. It may be a good choice if you have a higher property value and can manage larger monthly mortgage payments. Jumbo loans are available for purchase and refinance loans (including cash-out refinances).

    Features

    • A "non-conforming" loan with mortgage amounts above the maximum conforming limits.
    • Available in a variety of fixed-rate and adjustable-rate loan options.

    • You may be able to add extra features such as temporary buydowns.


    Benefits

    • You can obtain financing for loan amounts up to $3 million.

    • Provides the convenience of one loan for the entire loan amount and the choice of a variety of loan options.


    Considerations

    • Interest rates are usually higher on jumbo mortgage loans than on conforming loans with lower loan amounts.

     

    Talk to a local mortgage expert today (919) 785-4333 or email info@fmlending.com or click below to apply for a no cost pre-qualification.

  • FM Lending is a participating lender in HomeReadyTM by Fannie Mae.

    HomeReadyTM by Fannie Mae is designed for creditworthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities nationwide.

    Borrower Benefits: Accessible and Sustainable Financing

    • Low down payment. Up to 97% financing for purchase of a primary residence (1-unit properties).
    • Flexible sources of funds can be used for the down payment and closing costs with no   minimum contribution required from the borrower’s own funds (1-unit properties).
    • Extended-income household (EIH) may allow non-borrower income to be considered when qualifying the borrower for the mortgage.1
    • Lower than standard MI coverage requirements for loans with loan-to-values (LTV) greater than 90%, up to 97%.
    • Homeownership education helps buyers get ready to buy a home and be prepared for the responsibilities of homeownership. The required training offers an easy-to-use, online course provided by Framework. 

     

    HomeReadyTM is a trademark of Fannie Mae.
    1. Non-borrower income must be at least 30 percent of the total monthly qualifying income being used by the borrower(s).

     

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