Home Purchase Programs
It is important that you understand the features of your home loan and that it meets your financial needs. We can assist you in that determination.
As a strong direct lender with the flexibility to also act as a broker, we provide choice, convenience, and control throughout the loan process. We offer a full suite of lending products because we recognize the importance of having the right loan for every situation. Below is a sampling of just some of the programs available through Prospect Mortgage.
Fixed-Rate Mortgage (30- and 15-Year Fixed)
We offer our borrowers the choice of 30- and 15-year fixed-rate mortgages. These loan programs have the same interest rate for the life of the loan and monthly payments (principal and interest) that never change. If you escrow your property taxes and insurance, those expenses can change, which will affect your monthly payments. A fixed-rate mortgage may be a good choice if you plan to stay in your home for a long time or if you feel more comfortable knowing your payment cannot change.
The 15-year fixed mortgage is fully amortized over a 15-year period and features consistent monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate — and you'll own your home twice as fast and pay less interest than with a 30-year mortgage. But with a 15-year loan, you commit to a higher monthly payment.
Adjustable-Rate Mortgages (3/1, 5/1, 7/1, and 10/1 ARM Programs)
An ARM is a mortgage in which the interest rate and payments are adjusted periodically based on a pre-selected index. Subject to certain limitations, the rate and payments on an ARM loan rise and fall with the market. Adjustable-rate mortgages may be a good choice if you plan to be in your current home less than 3, 5, 7, or 10 years, depending on the program you choose.
Our 3/1, 5/1, 7/1, and 10/1 ARMs allow you to pay a lower introductory interest rate than many fixed-rate mortgages offer. Your interest rate and payment are fixed for the initial fixed rate period of 3, 5, 7, or 10 years, depending on the program you select. After the initial fixed period, your interest rate and payment will follow the movement of the index up and down, with certain limits. Our ARMs are popular because they help you qualify for a larger home and your loan may be assumable after the fixed-rate period of the loan. It is important to note that with an ARM, you may have a substantial increase in payment after the fixed-rate period and the interest rate over the life of the loan can typically increase five-to-six percentage points above the initial interest rate.
Jumbo and Super Jumbo Mortgage Loans
As an experienced jumbo and super jumbo mortgage lender, we offer a variety of programs with competitive rates and beneficial features. Fixed and adjustable rate options are available. We also provide jumbo and super jumbo loans for investment properties and second homes, as well as cash-out refinancing.
We offer residential mortgage loans insured by the Federal Housing Administration (FHA). FHA-insured loans offer many benefits, including lower costs, smaller down payments, easier qualification, and more protection to keep your home.
FHA Renovation Loan Program, Great for Fixer Uppers
The FHA Renovation Loan Program provides you with the money to refinance or purchase a home and renovate it, all with one convenient loan. This program is also ideal for purchasing foreclosures and improving their value with needed repairs and upgrades.
The VA loan program can make it much easier for veterans to secure a home loan by requiring little or no down payment. This home loan is available to veterans and guaranteed by the U.S. Veteran's Administration, and it frequently offers lower interest rates than ordinarily available. In addition, with a VA-guaranteed loan, there is no private mortgage insurance requirement.
Government Sponsored Entities, Fannie Mae and Freddie Mac, new conforming-jumbo loan limits make it easier and more affordable for more buyers to "move up" and purchase higher-value homes, or save substantially by refinancing their jumbo loan. Lower FICO score and down payment requirements, lower-than-jumbo rates, and loans amounts of up to $625,500 in some areas create a powerful alternative to a traditional jumbo loan.
State and Local Bond Programs
Many municipalities have established bond programs to help first-time home buyers with down payment assistance, obtaining a lower rate, and qualifying more easily for a home loan.