Many homeowners choose to access the equity in their homes to receive cash for home improvements, to pay for college tuition, to buy a new car, or any other high-cost purchases, but there are a number of other benefits that refinancing can offer.
Lowering your current rate is one of the most traditional forms of the refinance transaction, and has become even more common in the recent years with historically low interest rates.
Shortening the term of a mortgage is another popular transaction. Paying off a mortgage loan in a shorter amount of time can save you several thousand dollars over the length of a loan.
Refinancing may also give you the option of lower monthly payments, so that you have more cash available. Lowering your monthly payments usually depends on your current interest rate and the amount of equity in your home.
Debt Consolidation is quickly increasing in popularity, as homeowners include their high-interest debt in their new loans. This approach can allow you to clear up debt while enjoying tax benefits.
Seacoast Mortgage Loan Programs
Seacoast offers a variety of conventional financing solutions with minimum down payments typically ranging from 3%-20% depending upon the product. Rates vary for conventional loans depending upon a number of variables including, but not limited to, the percentage of down payment, credit scores, kind of property being financed, and type of occupancy held (e.g. primary residence, second home, inventment property). Private mortgage insurance (PMI) may be required for loans with less than 20%-25%.
Conventional Loan Advantages
Conventional mortgage programs are the most popular in the U.S. for multiple reasons. Borrowers who are able to put down at least 5%-20% may find better pricing than they can get through FHA, VA, USDA, or non agency products. Additional advantages include:
- Purchase programs that allow for as little as 3% down for owner occupied properties
Seacoast offers FHA financing assistance for home buyers seeking low money down purchase options, renovation loans for home repair and improvement projects, and FHA streamline and cash out refinancing assistance. Our FHA loans have less strict credit guidelines and lower down payment and equity requirements compared to most conventional financing solutions.
FHA Loan Advantages
Borrowers do not have to be first time home buyers to the eligible for our FHA mortgage programs. In many instances, seller paid closing costs may be permitted and down payment funds may be in the form of a gift or come from a down payment assistance program. Additional advantages may include:
- Low down payment (only 3.5% may be required)
- Seller contributions are allowed
- More flexible underwriting (approval)
- Closing costs that lenders can charge are restricted
- FHA loans are “assumable” to other qualified buyers
- FHA Refinances can be streamlined (less documentation required for approval)
- Some closing costs may be financed (less out of pocket expenses)
- Some FHA loans allow for Energy Efficiency credits
- Some FHA loans can allocate costs for repair/upgrade within the loan
- The FHA loan is covered by a government loan insurance program which makes it more desirable for lenders and other institutions
Seacoast is pleased to provide VA financing assistance to eligible members of the U.S. Armed Forces and qualifying spouses. Not only do we offer purchase financing with no down payment, no PMI, and competitive pricing, we also offer VA IRRRL Refinancing (aka streamline refinance) and cash out financing up to 100% of the value of the home.
VA Loan Advantages
Why consider a VA Loan? The two primary reasons why borrowers opt for VA financing is that they require zero down payment and credit requirements are often more lenient than alternative forms of financing (FICOs down to 580 considered). Other perks of VA mortgages include the lack of need for Private Mortgage Insurance (PMI), allowable seller paid closing costs, and the ability to roll a one-time funding fee into the financed loan.
Seacoast offers zero down USDA Rural Housing Loans for qualifying home buyers looking to purchase residential properties in USDA eligible areas. USDA home loans are designed to increase opportunities for homeownership in less developed areas. Both the borrower and proprerty must meet USDA guidelines in order to qualify.
USDA Loan Advantages
Most people opt for USDA financing as it’s one of very few 100% financing options in today’s marketplace. Credit guidelines are more relaxed than most alternatives and a single mortgage insurance premium can be financed into the loan amount thus reducing upfront costs.
Fannie Mae’s HomeReady® loan program requires as little as 3% down and gift funds may be used for part of the down payment. Borrowers can also refinance using HomeReady® to up to 97% of the value of their homes. Most conventional financing solutions require at least 5% down or 95% equity. Plus, HomeReady® often has a lower Mortgage Insurance premium than other conventional products.
HomeReady® Loan Advantages
HomeReady® can be a great alternative to FHA, VA, and USDA financing especially for borrowers or properties which may not qualify under those government backed programs (e.g. non military, middle-higher income wage earners, non rural areas, etc).
Not sure which loan program is right for you?
No worries! During the application process, your Seacoast Loan Officer will work with you to assess your situation, determine your options, and guide you through choosing the program that works for you. Apply now to get started!Start An ApplicationContact Us