Loan Program Descriptions

Federal Housing Administration (FHA)
The Federal Housing Administration is a division of the U.S. Department of Housing and Urban Development, commonly referred to as HUD. FHA loans were created to provide affordable mortgages to the average homebuyer. The federal government insures FHA loans, or guarantees participating lending institutions against loss from default on qualifying loans.

Programs and Features:

Fixed Rate Loans, Temporary Buy-Downs and ARMS. Check with our Loan Officer for limitations with respect to manufactured housing.
Available for detached 1 to 4 unit dwellings, eligible condos and PUD’s, and manufactured and modular housing.
Construction-to-Permanent loans available from Land/Home Financial
Properties must meet HUD guidelines and be inspected by HUD-approved appraisers. We can provide expert advice with respect to manufactured and modular housing requirements.
Subject to loan limits set by HUD (see HUD web site for loan limits - https://entp.hud.gov/idapp/html/hicostlook.cfm)
Mortgage insurance of one-half of 1% to three-quarters of 1% due annually and paid monthly
One time mortgage insurance fee of 2% to 2.25% charged on detached dwellings and PUD’s, which may be financed
Non-occupant co-borrowers allowed
No reserve requirements at closing
100% of down payment and closing costs may be a “gift”
Fully assumable by a qualified borrower
Seller may contribute a maximum of 6% of the lower of the sales price or the appraised value
MH foundation "Retro-Fit" Program available from Land/Home Financial.

Veterans Administration (VA)
Veterans Administration loans were created to help veterans finance the purchase of their homes with favorable loan terms. For the purpose of the VA program, “veteran” includes active duty service personnel and certain categories of spouses. Like FHA loans, the federal government insures VA loans, or guarantees VA approved lending institutions against loss from default on qualifying loans.

Programs and Features:

Fixed Rate Loans and Temporary Buy-downs. Check with our Loan Officer for limitations with respect to manufactured housing.
Available for detached 1-unit dwellings, eligible condos and PUD’s, and manufactured and modular housing.
Properties must meet VA guidelines and be inspected by VA-approved appraisers
Subject to loan limit set by VA (see VA Web site for loan limits – www.va.gov)
One time mortgage insurance fee of 2% to 2.4% is typically charged, which may be financed if the total loan amount does not exceed the VA loan limit.
No prepayment penalty
No reserve requirements at closing
No down payment required
Out-of-pocket expenses may be gifted, typically from relatives
Only eligible veterans and their spouses occupying the subject property may be co-borrowers or co-signers
Seller may contribute a maximum of 6% of the lower of the sales price or the appraised value

Conforming Loans
Conforming Loans are those that meet Fannie Mae and or Freddie Mac underwriting requirements. In other words, income, credit, and property requirements must meet nationally standardized guidelines. There are additional guidelines, pricing and restrictions regarding conforming loans for manufactured housing. Conforming loans are subject to loan amount limits that are set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These limits vary based on the region in which the subject property is located as well as the number of legal units contained in the subject property. Conforming loan limits for owner-occupied units in all states except Alaska and Hawaii are:

$417,000 for single family dwelling
$533,850 for 2 unit properties
$645,300 for 3 unit properties
$801,950 for 4 unit properties

Under the FNMA and FHLMC Charter Acts, the loan limits are 50% higher for first mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

Jumbo Loans
Jumbo loans are those that exceed the loan amounts allowed by FNMA and FHLMC. These other programs, including Jumbo loans, are quite limited with respect to manufactured housing. Check for details with your loan officer.

Programs:

No Income/No Asset Verification Loans
Construction-to-Permanent Loans
ARMs
Fixed Rates

Non Conforming Loans
Non Conforming Loans are loans that allow for non-traditional underwriting. They typically carry a higher interest rate than conforming loans.

Programs:

MH Invoice-Based Advance Loan Program
Construction-to-Permanent Loans
No Income/No Asset Verification Loans
ARMs
Fixed Rates
Credit History Less than perfect

Second Mortgages or Home Equity Closed-End Loans
A close-ended loan is one where a set amount of money is borrowed and repaid within a specific period of time. There are a multitude of second mortgage products available and lender guidelines vary widely. Generally, loan amounts, interest rates and fees are tied closely to equity in the property and credit scores. Whether to do a first or second mortgage or whether to take a line of credit or closed-end loan depends largely on the purpose of the loan. These loans are quite limited with respect to manufactured housing. Check for details with your loan officer.

Second mortgages are ideal products for the following situations:

Debt Consolidation: This is the most common purpose for acquiring a
second mortgage. Typically, a second mortgage is paid off in a shorter
period of time than a first.
Home Improvements: The greater the equity in a property, the better the deal on a mortgage. Often, a borrower will take a second mortgage to complete improvement projects. After the improvements are completed, the borrower refinances the first mortgage.
Cash Out: Many borrowers use the equity in their properties to obtain cash to pay for college expenses, vacations, or any other purpose that requires a fairly sizable amount of cash.
Eliminate the requirement for Mortgage Insurance.

Home Equity Lines of Credit
A home equity line of credit loan is a line of credit that is secured against real estate. The amount of the credit line is dependent upon the amount of equity in the subject property and the lender's guidelines. Each lender has its own specific guidelines and limitations. Lines of credit are typically designed for borrowers who intend to pay back the borrowed funds within a short period of time. Equity lines of credit are processed and underwritten similar to traditional mortgages; however, lender guidelines vary widely. These loans are quite limited with respect to manufactured housing. Check for details with your loan officer.

Home equity lines differ from traditional mortgages that provide funds up front, and then require repayments of principal and interest each month. With a home equity line, a borrower may draw against any available credit on the line while continuing to make monthly payments during the "draw period." The draw period usually lasts 15 years. At the end of that time, the borrower has a set number of years to repay the remaining balance in full without further draws. The “repayment period" is typically 15 years.

Interest on home equity lines accrues similar to interest on credit cards and payments are based on payment factors.


	Loan Program Descriptions Land/Home Financial Services, Inc. offers several loan programs. Most loan programs contain different features that can be confusing for even experienced homeowners. The most common loan programs include: FHA Loans \| VA Loans \| Conforming \| Jumbo \| Non Conforming \| Second Mortgages \| Equity Lines Federal Housing Administration (FHA) The Federal Housing Administration is a division of the U.S. Department of Housing and Urban Development, commonly referred to as HUD. FHA loans were created to provide affordable mortgages to the average homebuyer. The federal government insures FHA loans, or guarantees participating lending institutions against loss from default on qualifying loans. Programs and Features: Fixed Rate Loans, Temporary Buy-Downs and ARMS. Check with our Loan Officer for limitations with respect to manufactured housing. Available for detached 1 to 4 unit dwellings, eligible condos and PUD’s, and manufactured and modular housing. Construction-to-Permanent loans available from Land/Home Financial Properties must meet HUD guidelines and be inspected by HUD-approved appraisers. We can provide expert advice with respect to manufactured and modular housing requirements. Subject to loan limits set by HUD (see HUD web site for loan limits - https://entp.hud.gov/idapp/html/hicostlook.cfm) Mortgage insurance of one-half of 1% to three-quarters of 1% due annually and paid monthly One time mortgage insurance fee of 2% to 2.25% charged on detached dwellings and PUD’s, which may be financed Non-occupant co-borrowers allowed No reserve requirements at closing 100% of down payment and closing costs may be a “gift” Fully assumable by a qualified borrower Seller may contribute a maximum of 6% of the lower of the sales price or the appraised value MH foundation "Retro-Fit" Program available from Land/Home Financial. Back to top Veterans Administration (VA) Veterans Administration loans were created to help veterans finance the purchase of their homes with favorable loan terms. For the purpose of the VA program, “veteran” includes active duty service personnel and certain categories of spouses. Like FHA loans, the federal government insures VA loans, or guarantees VA approved lending institutions against loss from default on qualifying loans. Programs and Features: Fixed Rate Loans and Temporary Buy-downs. Check with our Loan Officer for limitations with respect to manufactured housing. Available for detached 1-unit dwellings, eligible condos and PUD’s, and manufactured and modular housing. Properties must meet VA guidelines and be inspected by VA-approved appraisers Subject to loan limit set by VA (see VA Web site for loan limits – www.va.gov) One time mortgage insurance fee of 2% to 2.4% is typically charged, which may be financed if the total loan amount does not exceed the VA loan limit. No prepayment penalty No reserve requirements at closing No down payment required Out-of-pocket expenses may be gifted, typically from relatives Only eligible veterans and their spouses occupying the subject property may be co-borrowers or co-signers Seller may contribute a maximum of 6% of the lower of the sales price or the appraised value Back to top Conforming Loans Conforming Loans are those that meet Fannie Mae and or Freddie Mac underwriting requirements. In other words, income, credit, and property requirements must meet nationally standardized guidelines. There are additional guidelines, pricing and restrictions regarding conforming loans for manufactured housing. Conforming loans are subject to loan amount limits that are set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These limits vary based on the region in which the subject property is located as well as the number of legal units contained in the subject property. Conforming loan limits for owner-occupied units in all states except Alaska and Hawaii are: $417,000 for single family dwelling $533,850 for 2 unit properties $645,300 for 3 unit properties $801,950 for 4 unit properties Under the FNMA and FHLMC Charter Acts, the loan limits are 50% higher for first mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands. Back to top Jumbo Loans Jumbo loans are those that exceed the loan amounts allowed by FNMA and FHLMC. These other programs, including Jumbo loans, are quite limited with respect to manufactured housing. Check for details with your loan officer. Programs: No Income/No Asset Verification Loans Construction-to-Permanent Loans ARMs Fixed Rates Back to top Non Conforming Loans Non Conforming Loans are loans that allow for non-traditional underwriting. They typically carry a higher interest rate than conforming loans. Programs: MH Invoice-Based Advance Loan Program Construction-to-Permanent Loans No Income/No Asset Verification Loans ARMs Fixed Rates Credit History Less than perfect Back to top Second Mortgages or Home Equity Closed-End Loans A close-ended loan is one where a set amount of money is borrowed and repaid within a specific period of time. There are a multitude of second mortgage products available and lender guidelines vary widely. Generally, loan amounts, interest rates and fees are tied closely to equity in the property and credit scores. Whether to do a first or second mortgage or whether to take a line of credit or closed-end loan depends largely on the purpose of the loan. These loans are quite limited with respect to manufactured housing. Check for details with your loan officer. Second mortgages are ideal products for the following situations: Debt Consolidation: This is the most common purpose for acquiring a second mortgage. Typically, a second mortgage is paid off in a shorter period of time than a first. Home Improvements: The greater the equity in a property, the better the deal on a mortgage. Often, a borrower will take a second mortgage to complete improvement projects. After the improvements are completed, the borrower refinances the first mortgage. Cash Out: Many borrowers use the equity in their properties to obtain cash to pay for college expenses, vacations, or any other purpose that requires a fairly sizable amount of cash. Eliminate the requirement for Mortgage Insurance. Back to top Home Equity Lines of Credit A home equity line of credit loan is a line of credit that is secured against real estate. The amount of the credit line is dependent upon the amount of equity in the subject property and the lender's guidelines. Each lender has its own specific guidelines and limitations. Lines of credit are typically designed for borrowers who intend to pay back the borrowed funds within a short period of time. Equity lines of credit are processed and underwritten similar to traditional mortgages; however, lender guidelines vary widely. These loans are quite limited with respect to manufactured housing. Check for details with your loan officer. Home equity lines differ from traditional mortgages that provide funds up front, and then require repayments of principal and interest each month. With a home equity line, a borrower may draw against any available credit on the line while continuing to make monthly payments during the "draw period." The draw period usually lasts 15 years. At the end of that time, the borrower has a set number of years to repay the remaining balance in full without further draws. The “repayment period" is typically 15 years. Interest on home equity lines accrues similar to interest on credit cards and payments are based on payment factors. Back to top