The interest rate and monthly principal and interest payment remain the same for the life of the loan.  We offer a variety of fixed-rate products: conventional, FHA, and VA in both conforming and jumbo loan amounts, with terms ranging from 10 to 30 years. 

Advantages:

• Predictable payments. The monthly principal and interest payment is fixed over the life of the loan.
• Protection from rising interest rates.  No matter how high the market interest rates go, your mortgage rate remains the same for the life of the loan.

Best for People Who:

• Are buying a home at a time when interest rates are comparatively low.
• Plan to stay in the house they are buying or refinancing for at least seven years.
• Are on limited or fixed incomes.      

Government loans come in two types: FHA loans, which are insured by the Federal Housing Administration, and VA loans, which are guaranteed by the Department of Veterans Affairs.  

FHA Loan Advantages:

• Low Down Payment Requirements.  A minimum of 2.25% down payment required which can be provided to the borrower as a gift from family, employers, church or down payment assistance programs.
• Flexible income, debt and credit requirements.  Alternate sources of income can be used.  Previous derogatory credit history may be excused. 
• Lower Mortgage Insurance Requirements.  The rate for the mortgage insurance is lower than most other loan programs requiring mortgage insurance. 

Best for:

• Homebuyers with limited savings
• Low-to-moderate income families 

VA Loan Advantages:

• No down payment required.
• No Mortgage Insurance Required.  Even with a zero down payment, VA loans do not require mortgage insurance. 
• Flexible income, debt and credit requirements.  Alternate sources of income can be used.  Previous derogatory credit history may be excused.

Best For:

• Qualified veterans, reservists, active servicemen and women and their spouses.
• Eligibile first- or second time homebuyers who have low-to-moderate incomes and/or limited savings. 

Adjustable-rate mortgages feature an interest rate that is fixed for an initial period, then adjusts periodically based on market fluctuations.  First American Mortgage offers a variety of conventional and goverment ARM products in both conforming and jumbo loan amounts. 

Advantages:

• Lower Monthly Payments.  Because the initial interest rate is lower compared to a traditional fixed-rate mortgage, during the early years of this loan you pay less monthly.
• More Buying Power.  Qualification is based on the lower initial monthly payment so you can get a larger loan amount.
• A Variety of Fixed-Period Options.  Depending on the ARM product you choose, the initial fixed-rate period may last for one year (1-year ARM), three years (3/1 ARM), five years (5/1 ARM), seven years (7/1 ARM), or even ten years (10/1 ARM). 

Disadvantages:

• Payments may change over time.
• Potential for higher payments if rates go up.
• Less flexible underwriting. 

Best for People Who:

• Plan to move or refinance within a few years
• Want to save money in the short term
• Need a larger loan amount than they can qualify for with a fixed-rate mortgage 

Borrowers with a strong credit rating have demonstrated their financial responsibility.  They can qualify for Stated Income/Stated Assets Loans and No Income/No Asset Loans and reduce the amount of documents required for approval.

Advantages:

• Convenience.  No need to hunt for tax returns, bank statements or pay stubs.  Simply state your income and assets on your application.
• Speed.  The underwriting process won't be delayed by paperwork and in most cases, these types of loans are approved very quickly.
• Flexibility.  These loan options are available on a wide range of fixed and adjustable-rate mortgage products. 

Disadvantages: 

• Higher interest rates than traditional mortgage loans.
• Stricter underwriting guidelines compared to traditional mortgage loans. 

Best for People Who:

• Have very good to excellent credit ratings. 
• Self-employed and commissioned customers with a proven ability to manage their personal credit. 

There are several loan programs available for borrowers who have had recent credit problems.  The interest rates for these loans are slightly higher compared to conventional or government loans.

Advantages:

• Re-establish Good Credit.  Borrowers who pay their mortgage on time typically increase their credit scores.
• Ability to Buy in a strong real estate market.  Borrowers can purchase a home when they find a "good deal".
• Future Refinancing at Lower Interest Rates.  Once good credit has been reestablished and there are any late mortgage payments, most Imperfect Credit Loans can be refinanced to a lower interest rate.

Disadvantages:

• Higher interest rates.
• Loans may have prepayment penalties.
• Higher down payments required. 
• More documents may be required compared to traditional mortgage loans.

Best for Borrower's Who:

Have had credit problems and want to buy a house and re-establish their credit.