FHA LOANS

Features:
  • Available in a variety of fixed-rate and adjustable-rate loan options.
  • May allow you to use a gift or grant for all or a portion of your closing costs.
  • Current FHA homeowners may be able to obtain an FHA streamline refinance.
  • You typically have to pay upfront and monthly FHA Mortgage Insurance premium.
Benefits:
  • Requires less cash upfront for your down payment and closing costs.
  • Available for all income levels.
  • Allows a new buyer to take over the loan if you sell your home (subject to loan approval).
  • Provides reduced paperwork if you’re eligible for an FHA Streamline Refinance.
  • A co-applicant can help you qualify even though they do not live in the home.
Considerations:
  • You can typically only have one FHA mortgage at any given time.
  • In many instances, you may find FHA to be a more expensive financing option and should be considered after thoroughly evaluating all other product options that meet your credit qualifying and financial needs.

VA LOANS

Features:
  • Provides financing for qualified veterans, reservists, active duty personnel, or eligible family members.
  • Available in a variety of fixed-rate and adjustable-rate loan options.
  • Allows closing costs to come from a gift or grant.
  • Gives current VA homeowners the possibility of getting a VA-to-VA refinance.
Benefits:
  • Provides a wide range of rate, term and cost options.
  • Doesn’t require monthly mortgage insurance.
  • Provides reduced paperwork if you’re eligible for a VA-to-VA Interest Rate Reduction Refinance Loan (IRRRL).
Considerations:
  • You typically pay a one-time VA Funding Fee that can be financed into the loan amount.
  • You can get financing for your primary residence only.

FIXED RATE MORTGAGE

Features:
  • Your interest rate and monthly principal and interest (P&I) payments remain the same for the life of your loan.
  • Available in a variety of loan term options.
  • You may be able to add extra features such as temporary buydowns. Benefits:
    • Predictable monthly P&I payments allow you to budget more easily.
    • Protection from rising interest rates for the life of the loan, no matter how high interest rates go.
    • May be a good choice if you plan to stay in your home for a long time.
Considerations:
  • The overall interest you pay is higher on a longer-term loan than on a shorter-term loan.
  • On a shorter-term loan, the monthly P&I payment is typically higher than on a longer-term loan.

ADJUSTABLE RATE MORTGAGE

Features:
  • Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 5, 7, or 10 years, then adjust annually.
  • Loans available in a variety of longer terms.
  • Includes interest rate cap that set a limit on how high your interest rate can go.
Benefits:
  • Typically ARMs have a lower initial interest rate than on a fixed-rate mortgage.
  • The interest rate cap limits the maximum amount your P&I payment may increase at each interest rate adjustment and over the life of the loan.
  • May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years.
Considerations:
  • Monthly principal and interest payments may increase when the interest rate adjusts.
  • Your monthly principal and interest payments may change every year after the initial fixed period is over.

DC OPENS DOORS PROGRAM

Requirements:
  • You must earn less than $123,395 per year.
  • You must have a decent to fair credit score (640+)
  • You must have a real estate agent to help you search for a home & negotiate the transaction.
  • You must find a home or condo in Washington, D.C. that you can qualify for financially with a DC’s Housing Finance Agency (DCHFA) approved Lender.
  • You do not have to currently live in Washington, D.C. Benefits:
    • DCHFA will pay the full amount of your qualified down payment is between 3% and 3.5% of the home purchase price.
    • The down payment assistance loan is issued; the balance due reduces by 20% each year for 5 years, ending at a zero balance.
    • The loan is at a 0% interest rate & no payments are due during the loan’s term.
    • There are a few situations where you may default on the loan – the loan becomes repayable or due if you sell the home, refinance or are not the primary occupant during the 5 year term.
    • Open to all DC neighborhoods & wards.

JUMBO LOANS

Features:
  • A “non-conforming” loan with mortgage amounts above the maximum conforming loan limits.
  • Available in a variety of fixed-rate and adjustable-rate loan options.
  • You may be able to add extra mortgage features, such as temporary buydowns. Benefits:
    • You can obtain financing for loan amounts higher than Fannie Mae and Freddie Mac conforming limits.
    • Provides the convenience of one loan for the entire loan amount and the choice of a variety of loan options.
    • You may be able to access additional benefits through our Private Mortgage Banking (PMB) group.

RENOVATION LOANS

203 K and Conventional Renovation Loans:
  • Owner occupied, second home, investment.
  • Down payments: Owner occupied: 5-10% down; Second home: 10%; Investment: 20%.
  • Structural and non-structural repairs only. No luxury items or outbuildings.
  • Renovations to be done by a general contractor. No self help allowed.
  • Renovation amount: 50% of as – completed value (cost of repairs ONLY – no financed fees).
  • Contingency reserve: Additional funds financed into loan for unforeseen repairs and/or cost overruns. Minimum 10% required.
  • Payment schedule: Third party inspector identifies percentage of work completed to date and approves completed work; Maximum 5 draws; 10% holdback on each disbursement.