When you’re looking for a new loan, it’s important to not only consider the different mortgage options but to also compare them as well. When you choose Starboard Financial, we work with you to make sure that you get the absolute most out of all of our products so that when you compare your options, it makes the process smooth and easy. We at Starboard Financial will make sure that you are taken care of so that all of your needs and questions are met and that your loan is the right one for you.
Conventional Mortgages are offered by Fannie Mae and Freddie Mac. Since they are not insured by the federal government, they usually have higher down-payment, credit score, and income requirements than government loans.
Conventional Loans are classified as conforming or non-conforming. Conforming simply means that the loan meets Fannie Mae and Freddie Mac’s established underwriting guidelines. If a loan does not fall within these guidelines, it is considered a non-conforming loan.
The main factor that determines whether a loan is conforming eligible is the loan amount. The maximum conforming loan amount is $453,100 in most states. Mortgages with loan amounts above this limit are considered Jumbo mortgages. Jumbo loans are still offered through Fannie Mae and Freddie Mac, but they are treated with different underwriting guidelines than conventional mortgages. Higher interest rates are common for non-conforming Jumbo loans because they carry higher risks.
Fixed or adjustable-rate mortgage (ARM) structures are available for Conventional loans. Fixed rate mortgages maintain the same rate and payment, subject to temporary mortgage insurance if applicable, throughout the life of the loan. The most common fixed-rate mortgages carry a 30 or 15 year repayment term. An ARM maintains the starting interest rate for a portion of the repayment term and then adjusts based on interest rate market conditions subject to the option selected.
Conventional mortgages require a minimum 5% down payment in most cases, whereas government loan types require a minimum 3.5% down payment or less. You will also be required to include monthly PMI in your payment if you put less than 20% down on your loan. PMI stands for Private Mortgage Insurance and in short, PMI protects your lender against a complete loss of money if you default on your mortgage payments.
A FHA mortgage is fully insured by the Federal Housing Administration under the U.S. Department of Housing and Urban Development (HUD). The main initiative of FHA is to lower the barrier to entry of home ownership by decreasing up-front financing costs. Approved FHA lenders, such as Starboard Financial, are able to offer lower down payments for these loans because there is less risk due to the government insurance.
Credit qualification guidelines are often easier than other underwriting standards to allow more people access to the program. This benefit does not come without limitations, as availability is subject to income and primary residency restrictions. Loan amounts are subject to ceilings as well. FHA loans are eligible for both refinance and purchase transactions.
One of the main initiatives of the USDA Rural Housing and Development program is to provide loans in areas where lending is scarce.
These loans are guaranteed by the USDA, so lower and moderate income earners, Native American tribal governments, the elderly, and persons with disabilities can maintain financing options in their communities. The USDA partners with many other federal initiatives to provide housing and employment to rural communities as well.
Borrowers for USDA loans are eligible to contribute a little as $0 for their down payment. Less strict asset reserve requirements than conventional standards also apply for these loans. Annual household income limits apply based on the USDA regional charts. You can view the income and property requirements
All terms of the prior obligation terminate when the new financing funds pay off the prior debt. The terms and conditions of a refinance vary widely based on the risk, product choice, credit worthiness of the borrower, and state of the property. Borrowers refinance their mortgage for various reasons:
Refinances are undertaken by borrowers to take advantage of market conditions, adjust their monthly budget, limit their exposure during financial difficulty, make the management of multiple debts easier, or gather a tax advantage in some situations.
Decreasing the monthly payment on your mortgage by lowering the rate or extending the loan term can make the payment easier to make each month. If you are in the midst of significant life changes, taking proactive steps to reduce your monthly debt obligation to avoid possible delinquent payments is a sound strategy. We have a full range of products and loan terms to give you the ability to adjust your mortgage as you choose.
Cash-out refinances may not help lower your monthly payment or shorten your mortgage term, but additional cash has unlimited applications. The equity (ownership) you have established in your previous down payment and monthly payments can be retracted out of your home as everyday currency for any expenses. Many borrowers pull out equity for home improvement, relieving credit card debt, and other debt consolidation. Refinancing through a cash-out allows you to realize the market value appreciation in your home before you ever sell the property. In some cases, when combined with a second mortgage, you can refinance into a loan amount above traditional standards and keep the cash proceeds.
Financing major purchases through home equity financing may be a more practical way to pay rather than using cash, credit cards, or other types of financing. Consider a home equity loan or line of credit for:
We hold a special place for first-time home buyers in our company philosophy. Giving first-time home buyers the advice and knowledge to make an informed buying decision is one of our true pleasures. Looking out for your needs exemplifies one of the core aspects for why we formulated Starboard Financial. We have a variety of resources to help you navigate the environment for your first home purchase. We understand the process can be overwhelming; it is our job to relieve as much of the stress as possible. Please see these resources to help you in your journey:
MOST IMPORTANTLY – Reach out to us. Our dedicated professional loan officers are here to answer any and all questions that you have. We are experts in this area and have guided innumerable individuals just like you through this process. You can trust us to support you – The Right Way.
Starboard is proud to support retired, reservist, and active duty members of the U.S. Armed Forces by providing easy access to home loans guaranteed by the Veterans’ Administration. The VA Home Loan can be utilized to purchase or build a home to be used for your own personal occupancy or “primary residence”. Depending on the time period in which you served, you may qualify for VA Home Loan Benefits with only 90 days of active duty, National Guard, or reserve service. As VA Home Loans do not require a down payment, you can finance up to 100% of a home’s value and all that you need is suitable credit, sufficient income, and a valid Certificate of Eligibility along with a copy of your DD-214 discharge form if you have separated from service. If you don’t have a current copy of your Certificate of Eligibility, Starboard can work directly with the VA to help you obtain one.
VA loans are partially guaranteed by the U.S. Veteran’s Administration; therefore lenders are able to offer better terms and easier qualification standards. Some of the lowest down payment standards in the lending industry are available as part of VA financing. The VA aims to help supply housing to veterans in rural areas where financing can be most difficult to find as well. In some cases, the seller is eligible to pay for all borrower closing costs if they so choose.
Qualification is subject to a valid Certificate of Eligibility including minimum service requirements provided by VA. Financing is limited to the purchase or refinance of the borrower’s owner-occupied primary residence. The benefit entitlement may be restored if the previous VA loan is sold and paid off in full. Borrowers should also be prepared to pay the VA Funding Fee, however it may be financed into the overall loan amount and paid off though the life of the loan.
An industry awarded retailer by several manufacturers, Homes Direct believes customers should be treated the right way. The Homes Direct staff has the expertise to make the process of moving into a new custom manufactured home incredibly simple! There is absolutely no haggling and education is at the forefront of the home buying journey for each Homes Direct customer.
Finding a good location will determine a lot of the costs and options available to you.
Mobile Home Park: necessary to determine the maximum dimensions for the space being looked at
Open Land: make sure a manufactured home can be placed there
Second Dwelling on Existing Home Property: find out from the city/county the maximum size allowed
This is the fun part! You will choose a manufacturer available to your area, find a floorplan that works for your family, customize options/colors, and verify dimensions/square footage for where the home will be located.
Homes Direct requires a fully refundable deposit to lock in the price of the home and then they can help arrange financing if desired. Homes Direct can also help in obtaining permits, which can often be a frustrating and time-consuming process when going at it alone. The site where the home will exist needs to be ready before the home arrives. This means any foundation that needs to be built, utilities that need to be turned on, and permits necessary will need to be completed BEFORE the home is ordered from the factory.
Once ordered, it generally takes 60-75 days for the home to be move in ready.
Homes Direct will be with you to make sure you are 100% satisfied with the installation and finishing of your new home. There will be a initial walkthrough with a Homes Direct technician and then a final inspection with the city/county.
The Starboard Financial Loan Process was built around the needs of our purchase clients.
Starboard Financial would like to share our efficient loan process with you so that you will know exactly what to expect. The diagram provides a quick summary. Additional information for each step is provided below. If you have any questions or would like further clarity, please feel free to contact us for more information.
Please note that in a Refinance transaction, the Pre-Qualification and Accepted Contract stages will be omitted, otherwise the Purchase and Refinance loan processes are the same.