Your Friendly Local Home Loan MortgageTeam

A home purchase loan is a mortgage specifically designed to finance the acquisition of a residential property. The mortgage loan is used to purchase the home, and the borrowers agree to repay the loan plus interest over a set period of time.

A home refinance involves replacing an existing mortgage with a new one, typically to secure a lower interest rate, reduce monthly payments, or access home equity. This process can provide financial relief or allow homeowners to achieve new financial goals, such as funding renovations or consolidating debt.*

*By refinancing an existing loan, total finance charges may be higher over the life of the loan

Down payment assistance refers to programs that provide financial help to homebuyers for their down payment and closing costs. These funds can come in the form of grants, loans, or forgivable mortgage loans, making homeownership more accessible, especially for first-time buyers or those with limited savings.

The FHA 203(k) program enables homebuyers to finance both the purchase and renovation of a home through a single mortgage. With options for both extensive and minor repairs, it encourages investment in properties that need improvement, supporting neighborhood revitalization. Visit our renovation page and ask to download our free guide. This is Deb's favorite program.

Debt Service Coverage Ratio (DSCR) measures a property's ability to generate enough income to cover its debt obligations. It's calculated by dividing the net operating income by total debt service, with a ratio above 1 indicating that the property generates more income than is needed to pay its debts.

A construction loan is typically a short-term financing option used to fund the building or renovation of a home or commercial property. It typically provides funds in stages as construction progresses, requiring interest payments on the amount disbursed until the project is completed and converted to a permanent mortgage. This is Brittany's favorite program.

An FHA loan is a government-backed mortgage designed to help low- to moderate-income borrowers qualify for home financing with lower down payment requirements and more flexible credit standards. These loans are insured by the Federal Housing Administration, making them a popular choice for first-time homebuyers and those with less-than-perfect credit.

VA loans are mortgage options backed by the U.S. Department of Veterans Affairs, designed to help eligible veterans, active-duty service members, and certain members of the National Guard and Reserves purchase homes. They offer benefits such as no down payment, no private mortgage insurance (PMI)* requirements, and competitive interest rates, making homeownership more accessible for those who have served in the military.

*A VA funding fee may be required.

A renovation loan is a type of financing that allows homeowners to borrow money specifically for home improvements or repairs. This loan can cover a range of projects, from minor updates to major renovations, and is often structured to provide funds upfront or in stages as the work is completed.