Types of Mortgages to Consider - Part 2

There are many different considerations that you will have when purchasing a home at the Lake of the Ozarks. From fixed to adjustable interest rates and even the mortgage terms, these decisions don’t just become easier because you have purchased a home already. Whether this is your first home or vacation home at the Lake of the Ozarks, we have some more details to share about the types of mortgages available. If you haven’t seen part 1, you can check it out here: Types of Mortgages to Consider - Part 1.

Conventional vs. Unconventional Mortgages

Essentially, a conventional loan is a deal between you and your lender that will meet Fannie Mae’s underwriting guidelines. An unconventional loan breaks those guidelines and can include government-insured programs like FHA, VA, or USDA.

Conventional Loans

Pros can show up when you calculate interest rates and fees, your total cost is lower than an unconventional loan. Cons could be that the unconventional loans are backed by the government, so lenders may require a higher down payment on conventional loans. You will also have to pay private mortgage insurance (PMI) if your down payment is less than 20%.

FHA Loans

Pros can include that you can get a mortgage with as little as a 3.5% down payment. However, cons can mean that you are required to pay a mortgage insurance premium (MIP), which is similar to a PMI - except that it must be paid for the life of the loan.

VA Loans

With the Department of Veterans Affairs (VA) loans, it allows military veterans to buy a home with virtually no down payment or mortgage insurance. However, when you purchase a home with zero money down, and things change in the housing market, you may end up owing more than the market value of your home. VA loans also come with a funding fee, which can range anywhere from 00% to 3.3%. This will depend on your military status, down payment amount, and even whether it’s your first time financing a home.

USDA

The pros for a United States Department of Agriculture (USDA) loan program are that it’s managed by the Rural Housing Service (RHS), and is great for people living in rural areas who also show a financial need. This loan can allow many to buy a home with no down payment. Cons include that there are additional fees associated with this loan program and some stricter inspection requirements.

Conforming vs. Non-Conforming Mortgages

Your mortgage will be either a conforming or non-conforming, based on how much money a lender will give you. A conforming loan will meet the standard underwriting guidelines for a specific mortgage program, while a non-conforming loan would exceed the size limits established by lender guidelines.

Conforming Loans

Pros would be that you’ll pay a lower interest rate compared to non-conforming loans. However, the cons can include buying a lower priced home to stay in the conforming loan amount range.

Jumbo Loans (Non-Conforming)

The pros of this type of loan are that they exceed the loan amount limits set by Fannie Mae and Freddie Mac, which means you can get a higher-priced home. However, the cons are that they require excellent credit and larger down payments, and they have higher interest rates than conforming loans.

Reverse Mortgages

With most mortgages, the longer you own your home, the more of your home you own. There is a different mortgage, and that’s a reverse mortgage.

Pros of this type of mortgage are that senior homeowners can supplement their limited income by borrowing against their home equity. They can then receive tax-free, monthly payments or a lump sum from the lender.

Cons for this type of mortgage are that you sell off your equity for cash. With a traditional mortgage, the amount you borrow and have to repay goes down over the life of the loan, but with a reverse mortgage, the amount you actually own goes down as your interest accumulates.

Lake of the Ozarks Home Loan

Team Lasson looks forward to helping you buy the home of your dreams at the Lake. From a primary residence to a vacation home at the Lake of the Ozarks, we have done it all. Now is proving to be an AMAZING time to lock in your interest rate and get your mortgage or refinance finished up. If you have questions about this, we would love to chat with you! Start by visiting our website (www.YourLakeLoan.com) and filling out the application - we look forward to helping you buy the home of your dreams!

For Lake area news, resources and tips on financial services, please 

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Choosing the Right Mortage Loan for You

When you choose to work with the best mortgage lender at the Lake of the Ozarks, you'll have a variety of loan options available to you. Whether you're a first-time homebuyer or are looking to refinance your home at the Lake of the Ozarks, we'll discuss your needs and find the best mortgage product for you! Today's blog takes a look at several of the different products we provide our clients:

Conventional Loans

Conventional loans offer competitive rates and flexible terms. Downpayment requirements can vary from 5-20% down. These loans are available from 10-30 years and can be fixed or adjustable-rate. Whether you're looking to purchase a new home or refinance your current one, conventional loans can be a great option. If you have great credit and a substantial amount for a downpayment, then a conventional loan is the way to go! 

USDA Loans 

The United State Department of Agriculture (USDA) loan requires no downpayment and is available to borrowers with lower credit. This is the only zero-down loan available to those without a military service history. These loans typically come with very low interest rates and less expensive mortgage insurance, keeping the monthly payments down and beating the affordability of even FHA loans. Compared to other loan products, the USDA loan has a lower upfront and monthly costs. This makes the USDA loan more affordable for families on a tight budget. These loans are restricted to homes in "rural" areas, and the homes are usually modest in design, size and cost.  

FHA Loans

The Federal Housing Administration is the largest insurer of residential mortgages in the world. FHA loans typically require higher income and credit qualifications than USDA loans. The minimum downpayment can vary, but most of the time a 3.5% downpayment applies to FHA loans. The terms of FHA loans are flexible, and closing costs are typically low. Whether you're purchasing a new home or refinancing, the FHA loan offers competitive rates.

VA Loans

In order to qualify for a VA loan, you must be a veteran or active duty military. Like the USDA loan, VA loans do not require a downpayment. If you qualify, the VA loan is a great option as it offers low interest rates and no downpayment. This program was designed to make homeownership more affordable for qualified US veterans. Closing costs are generally low on these loans and there are no pre-payment penalties - and while there's no downpayment requirement, you still don't have to pay monthly mortgage insurance premiums.

First-Time Homebuyer Program

In addition to the above products, our company offers a First-Time Homebuyer Program to help you get in a home faster and easier. The First Place Loan Program gives first-time homebuyers the edge needed to purchase a home. These loans offer affordable interest rates, as well as a 3% cash assistance loan for downpayment and closing costs. Incentives offered by the Missouri Housing Development Commission (MHDC) allows prospective buyers to obtain a Lake of the Ozarks mortgage in a competitive market.

With all the loan options available, it might be hard to find a place to start. As your Lake of the Ozarks mortgage lender, I'm here to work with you every step of the way. Give me a call at 573-46-7211 to discuss your needs and I'll help you find the perfect loan option for your situation.

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

The 411 on FHA Loans

When it comes time to buy a house at the Lake of the Ozarks, you're going to have several options for financing. First State Bank Mortgage offers a full portfolio of fixed and adjustable-rate mortgage products. One of those options is the FHA Loan, perfect for both new home buyers or those looking to refinance.

What is an FHA Loan? 

An FHA loan is a loan funded by the Federal Housing Administration. FHA loans offer competitively-priced rates and a low downpayment option, making them quite popular among borrowers. Those with FHA loans however, do have to pay for private mortgage insurance to protect the lender from a loss if there's a default on the loan.

FHA Loan Requirements 

The FHA loan requirements set by the Federal Housing Authority include:

• Must have a valid Social Security number, lawful residency in the US, and must be of age to sign for a mortgage in that state. 
• Must pay a minimum downpayment of 3.5%. 
• Must have a minimum credit score of 580 for maximum financing with 3.5% down. On a case by case basis, 500-579 may be approved with 10% down. 
• Must have a steady work history or worked for the same employer for the past 2 years. 
• Must be at least 2 years out of bankruptcy and have re-established good credit. 
• Must be at least 3 years out of a foreclosure and have re-established good credit.  

Benefits of an FHA Loan

When it comes to choosing which loan program is right for you, you need to look at the benefits of each type. Here are the benefits of an FHA loan from your Lake of the Ozarks mortgage lender:

• Flexible credit and underwriting standards 
• Low closing costs
• Fixed and adjustable-rate mortgages available
• Down payments as low as 3.5% of sales price
• Competitive rates on new home purchases and refinances
• In-house processing and underwriting

If you're thinking about a new home purchase at Lake of the Ozarks, give me a call at 573-746-7211 regarding all your financing needs. I can answer all your questions about FHA loans and help you decide if it's the best option for you. As the best mortgage lender at the Lake of the Ozarks, I'm committed to working with you every step of the way! 

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

First State Bank Mortgage Loan Programs

Whether you're dreaming of a new home or looking to lower your monthly mortgage payments, we can help! As your Lake of the Ozarks mortgage lender, I am here to help you find the perfect loan for your situation. First State Bank Mortgage provides a full portfolio of fixed and adjustable-rate mortgage products. Here is a breakdown of the loan options availble when you choose me for all your Lake of the Ozarks home financing needs!

Conventional Loan Program – Traditional Mortgage

Conventional loans offer flexible terms and competitively-priced rates. With a conventional loan, you can get financing for up to 95% of your home's value. Whether you're looking to buy a new home or finance your current one, a traditional mortgage is a great option. Benefits of a Conventional Loan include:

• Flexible Terms from 10-30 years available
• Fixed and adjustable-rate mortgages available
• Down payments as low as 5% of sales price
• Multiple options for Mortgage Insurance, if applicable
• Competitive rates on new home purchases and refinances
• In-house processing and underwriting

FHA Loan Program

An FHA loan is a loan that is insured by the Federal Housing Administration. FHA loans offer competitively-priced rates and a low down payment option. Benfits of an FHA Loan include:

• Flexible credit and underwriting standards 
• Low closing costs
• Fixed and adjustable-rate mortgages available
• Down payments as low as 3.5% of sales price
• Competitive rates on new home purchases and refinances
• In-house processing and underwriting

USDA Rural Housing Loans

Sponsored by the U.S. Department of Agriculture, rural housing loans are designed to make homeownership more affordable for those borrowers living in rural communities. For qualified borrowers, a Rural Housing Loan can provide up to 100% financing with competitive rates and terms. Benefits of a USDA Home Loan include:

• Up to 100% financing
• NO monthly mortgage insurance premiums due
• Low closing costs
• Affordable fixed rates
• Flexible credit and qualifying guidelines
• Available on new or existing homes

VA Home Loans

VA Loans are designed to make homeownership more affordable for qualified U.S. veterans. They offer favorable terms, competitive interest rates and no monthly mortgage insurance premium. If you’re eligible for a VA-Guaranteed Loan, you’ve earned several major benefits including:

• Up to 100% financing
• NO monthly mortgage insurance premiums due
• NO pre-payment penalties
• Low closing costs
• In-house processing and underwriting

First-Time Homebuyer Program

The "First Place Loan" offers a great financing option for first-time homebuyers. The program gives first-time homebuyers and qualified veterans the edge they need to purchase a home. Affordable interest rates, in combination with additional incentives offered by the Missouri Housing Development Commission (MHDC), allow prospective buyers to obtain mortgage financing in a competitive market. Benefits of a MHDC First-Time Homebuyer Loan include:

• 3% cash assistance loan for down payment and closing costs
• Fixed-rate mortgage
• FHA, VA, USDA Rural Development, Fannie Mae qualified
• In-house processing and underwriting
• First-time homebuyer requirements are waived for qualifying veterans and for homes purchased in targeted areas

Rehab Home Loan Program

With the brand-new Rehab Loan Program, qualified homebuyers can now buy the home of their dreams and borrow additional funds dedicated to improving or upgrading the property. This is a fixed-rate mortgage that allows the homeowner to have rehabilitation construction completed on their single family property. Funds may be used to make necessary cosmetic or functional improvements to the home.

For more information on which Lake of the Ozarks home loan options you may be eligible for, contact Lakelender Michael Lasson at 573-746-7211. I'm committed to working with you every step of the way. When you choose First State Bank Mortgage and the BEST mortgage lender at Lake of the Ozarks, owning a new home can go from dream to reality!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.