ARMs (3/1 ARM, 3/3 ARM, 5/1 ARM, 5/5 ARM, 7/1 ARM, 10/1 ARM- These increasingly popular ARMs can offer the best of both worlds: lower interest rates and a fixed payment for a period of time than most adjustable rate loans. For example, a "5/5 loan" has a fixed monthly payment and interest for the first five years and then adjusts to a new rate at the end of that first 5 years and then is fixed at the new rate for another 5 years. These loans are kept in our loan portfolio so issues such as acreage or log homes aren't a problem as they are on a fixed rate product. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
Construction Loans - This type of loan provides for the funds needed to build a new home or do substantial remodeling of an existing house. You will make interest only payments for a 12 month period only on the funds you have used as the project progresses. Once the home is fully completed then this loan will need to be refinanced into another loan product offering principal and interest payments.
Bridge Loans - Offers a method to purchase a new house before your old house has sold. Both old and new homes will be held as collateral. You will make interest only payments for a 12 month period on the entire loan amount. Once the old home has sold you will refinance the remaining balance on to a permanent type loan.
Rehab Loans - Allows you to purchase a home that may need improvements made to it all in one loan product. Detailed plans showing the planned improvments along with cost estimates and the purchase contract will all need to be provided to us. We will finance these improvements after taking your down payment into consideration.
Home Equity Loans (HELOCS) - Allow you to borrow against the equity in your home to make home improvements, purchase automobiles or travel. The balance on your loan will fluctuate as you draw on the line of credit and as you pay it down. Our HELOC has a 10 year draw period and then a 10 year repayment period.
Fixed Rate Mortgages 10 - 30 year Terms
The traditional fixed rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
USDA
This loan is fully amortized over a 30-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus requiring no down payment. The house will need to be in a designated rural area. The disadvantage is that, with a USDA loan, you commit to a higher monthly payment due to having to pay a Guarantee Fee to USDA to offset the lack of a down payment. Many borrowers opt for a USDA loan for the purchase of their first home.
WV Housing Development Fund
This loan is fully amortized over a 30-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus assistance for down payment and closing costs. The program has income limitations and in certain counties borrowers must not have owned a home in the last 3 years. Many borrowers opt for a WV Housing Development Fund loan for the purchase of their first home.