LOAN OPTIONS
We’re here to make the process easier, with support and expertise that will help guide you along the way.
Just give us a call, or book a time at your convenience to ask questions or get a Total Cost Analysis.
USDA
A USDA mortgage is a home loan offered by the United States Department of Agriculture to promote homeownership in rural areas. It often requires no down payment and features favorable terms for eligible borrowers.
30-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that don’t change for the life of the loan. This may be a good choice if you plan to stay in your home for more than seven years. If you plan to move or refinance within seven years, then comparing to an adjustable-rate loan option often may save you money.
15-Year Fixed Rate Mortgage
A 15-year fixed loan is fully amortized over a 15-year period with the same monthly payments for the life of the loan It offers the stability of the 30-year loan at a lower interest rate, and you’ll pay off your home twice as fast saving you a bundle on interest. The disadvantage is that, with a 15-year loan term, you monthly payments will be higher, which isn’t always worth the pressure. Many borrowers opt for a 30-year fixed-rate loan and choose to accelerate monthly payments at their own pace, which will pay off the loan sooner and accomplish much of the same benefit without the added cash-flow pinch. The flexibility of this approach often makes more sense for homeowners than being required to pay higher monthly payment. Though the 15-year fixed rate does have a lower rate, it may not be significant enough to be worth it.
Speak to us about your options, and get a total cost analysis to compare.
Adjustable Rate Mortgages (ARM)
An ARM (Adjustable Rate Mortgage) offers more flexibility in terms of monthly payments. The payment is variable throughout the loan’s lifespan tied to an index plus a margin. The cost benefit over a fixed-rate mortgage option makes them attractive, and with a fixed-rate rider, you can strategically choose to fix the rate for 3, 5, 7 or 10 years after which, it goes adjustable. They’re a solid choice if you foresee a short stay in your home or anticipate a refi or an income boost.
FHA Loans
Backed by the Federal Housing Administration, FHA loans offer a safety net to lenders by ensuring the loans, reducing default risks. Birthed in the 1930s as a response to foreclosures, these loans now stimulate the housing market by making mortgages more accessible and affordable.
VA Loans
Tailored for the heroes among us, VA loans, guaranteed by the U.S. Department of Veterans Affairs, offer long-term financing for American veterans and their non-remarrying surviving spouses. These loans, which can be issued by qualified lenders, stand as a token of gratitude for their service.
Jumbo Loans
Designed for higher dollar home purchases, jumbo loans cover properties that exceed the standard conforming limits. Rates might be slightly elevated given the increased risk to lenders.
Super Jumbo Loans
For those in the upper echelons of real estate, super jumbo loans cater to properties priced between 2.0 million and 100 million. As with jumbo loans, anticipate somewhat higher interest rates due to the escalated lender risk.
40-Year Interest Only
A unique structure: pay only interest for the first 10 years, followed by a fixed 30-year period covering both principal and interest. Enjoy the security of a fixed rate for 40 years, with the option to pay principal in the initial decade and flexibility concerning refinancing, selling, or using the loan on various property types.
Creative Financing Option
Tailored for the non-traditional, options include bank statement evaluations, leveraging liquid assets like stocks or Bitcoin, and even cross-collateralization. Meant for those who navigate unique financial situations.
Investor (DSCR)
With DSCR, the focus is on the property. Your personal income is irrelevant. Instead, property cash flow determines eligibility. Designed for savvy investors eyeing properties with both positive and negative cash flows. Available for Airbnb properties as well.
Asset Depletion
An asset depletion mortgage calculates loan eligibility based on a borrower’s liquid assets rather than traditional income. This type of loan is especially useful for retirees or high-net-worth individuals with significant assets but low monthly income.
Fix-N-Flip
A fix-n-flip loan is a short-term financing option designed for real estate investors to purchase and renovate properties for resale. These loans provide quick access to funds, allowing investors to capitalize on real estate opportunities and sell the renovated property for profit.
Bridge Loan
1-4 unit residential properties, these loans offer nationwide lending starting at 150k, prioritizing investors.
Experience isn’t mandatory but can elevate your leverage. LTV: Up to 90% LTC.
Ground Up Construction
Kickstart your construction dream on 1-4 unit residential properties, ensuring the land is owned and permits issued by closing. A minimum of 3 projects in the last three years, including one ground-up construction, sets the eligibility benchmark.
HELOC / HELOAN
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home’s equity, allowing homeowners to borrow against it. It offers flexible access to funds, typically at lower interest rates than unsecured loans.
A HELOAN is a Home Equity Loan, which allows a fixed option for large withdrawals.
Contact Ritter Mortgage Group
Seeking a trusted partner in your home loan journey? Ritter Mortgage has unparalleled standards and dedication to elevate your living quality. Reach out via email or call us, we’re happy to help!
