LOAN OPTIONS

Your home isn't just a place to live; it's an investment for you and your family’s future

 

Here at Lake Tahoe Mortgage, we offer a wide variety of loan options to meet the unique needs of our customers. We understand selecting the right loan product can be overwhelming; however, our mortgage professionals will provide tailored advice to help you make the best decision for you and your family.

Please contact Lake Tahoe Mortgage to learn more.

Conventional Loans

Lower Rates with More Flexibility
 

A conventional mortgage refers to any loan that is not insured or guaranteed by the federal government, as opposed to government-insured loans including Federal Housing Administration (FHA), U.S. Department of Veteran Affairs (VA) and U.S. Department of Agriculture (USDA). Conventional mortgages (whether conforming or not) typically have a slightly higher down payment than government loans; however, this loan option normally provides more flexibility with fewer restrictions.


Conventional Highlights

If you have good credit and stable income, a conventional loan might be the right option for you since it offers:

  • Lower interest rates for borrowers with good credit

  • Flexible mortgage insurance options

  • Fewer penalties and fees

  • Flexible loan terms


Conventional Loan Programs


Adjustable-Rate Mortgage

An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases based on market fluctuations, which can also affect the monthly payment. An ARM could be the right choice for you if you plan on staying in your home for just a few years, you’re expecting a future pay increase, or the current interest rate on a fixed-rate mortgage is too high.


Fixed-Rate Mortgage

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. Plus, you have the option of selecting a 10, 15, 20, 25 or 30-year term. The main difference is the lower term options have higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.


Jumbo Mortgage

A jumbo loan, or non-conforming mortgage, allows you to purchase more expensive homes with a loan amount above the conforming limit set by the Federal Housing Finance Agency. In most areas of the country, the conventional conforming loan limit is $510,400; however, the limit is $765,600 in higher cost areas. If you have a low debt-to-income (DTI) ratio and a higher credit score, but you don’t have enough funds to bring the loan amount under the conforming limit, a jumbo loan might be the right option for you.

If you are interested in a conventional loan, please contact Lake Tahoe Mortgage.

 
 

Adjustable Rate Mortgage

Providing Flexibility for Homeowners

 

An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases based on market fluctuations, which can also affect the monthly payment.

Adjustable-Rate Mortgage Highlights

An ARM might be the right option for you if you plan on moving within 7 years since they feature lower introductory interest rates. If interest rates are expected to fall, a homeowner could potentially reduce their monthly payments with the lowered interest rates. Highlights of an adjustable-rate mortgage include:

 

  • Lower initial monthly payments

  • Possibility to qualify for higher loan amounts

  • Rates and Payments may decrease based on the index rate


If you are interested in an adjustable-rate mortgage, please contact Lake Tahoe Mortgage

 

 

 

FHA Loans

Opening the Doors to Homeownership

 

 

Home loans insured by the Federal Housing Administration (FHA) can make it easier for you to qualify to purchase or refinance a home. This loan option offers flexible qualification guidelines to help people who may not qualify for a conventional mortgage.

FHA Loan Highlights

FHA loans are widely used by first-time homebuyers and people with low-to-moderate incomes since this government-insured mortgage features:

  • Low down payments

  • Flexible income and credit requirements

  • Fixed- and adjustable-rate mortgages

  • Loans for 1-4 unit properties and condos may be available

  • Down payment funds can be a gift from a relative or employer*

  • Home sellers can contribute up to 6% of the closing costs


    *Subject to underwriting review and approval.


FHA Loan Programs


Adjustable-Rate Mortgage

FHA's adjustable-rate mortgage (ARM) insures home purchases or refinances with rates that can change after the initial fixed-rate period. Depending on market fluctuations after this initial fixed-rate period, your monthly payments could change due to rates increasing or decreasing. An ARM could be the right choice for you if you plan on staying in your home for just a few years, you’re expecting a future pay increase, or the current interest rate on a fixed-rate mortgage is too high.


Fixed-Rate Mortgage

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. With FHA loans, you can select a 30-, 20- or 15-year term. The main difference is the lower term options have higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.


Streamlined Refinance

If you currently have an FHA mortgage, we may be able to help you reduce your interest rate and lower your monthly mortgage payments with an FHA streamlined refinance. Plus, a streamlined refinance requires limited borrower credit documentation and underwriting for an even easier process. This may be the right solution if you want to convert your ARM to a fixed-rate loan.


If you are interested in a FHA loan, please contact Lake Tahoe Mortgage

Fixed-Rate Mortgage
Secure Your Financial Future

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. Plus, you have the flexibility of selecting a 10, 15, 20, 25 or 30-year term (depending on the loan type). The main difference is the lower term options have higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for a new home if you sell your existing home or take out equity with a cash-out refinance.


Fixed-Rate Mortgage Highlights

If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you since this option features:

  • Consistent monthly payments and interest rates

  • Protection from rising interest rates

  • Mortgage tax interest deduction*

  • Different term length options


*This does not constitute tax advice. Please consult a tax advisor regarding your specific situation.

If you are interested in a fixed-rate mortgage, please contact Lake Tahoe Mortgage

 

Jumbo Loans
Think BIG with a Jumbo Loan

A jumbo loan, or non-conforming mortgage, allows you to purchase more expensive homes with a loan amount above the conforming limit set by the Federal Housing Finance Agency. In most areas of the country, the conventional conforming loan limit is $510,400; however, the limit is $765,600 in higher cost areas.


Jumbo Loan Highlights

If you have a low debt-to-income (DTI) ratio and a higher credit score, but you don’t have enough funds to bring the loan amount under the conforming limit, a jumbo loan might be the right option for you. Highlights of non-conforming loans include:

  • Finance a home over the maximum loan amount established by the Federal Housing Finance Agency

  • Higher purchase limits allow borrower to purchase more house

  • Convenience of one loan for the entire loan amount

  • Primary residence, second home or investment property

  • Fixed-rate or adjustable-rate mortgages (ARM)



If you are interested in a jumbo loan, please contact Lake Tahoe Mortgage

 

Refinance
Save Money with a Refinance

With a refinance, you pay off your current loan with a new loan and restructure the mortgage to fit your needs. You could also save a considerable amount of money over the life of your loan and potentially improve your overall financial outlook. Determine if refinancing is right for you by using our refinance calculator.


Refinance Highlights

Refinancing may be the right decision if your home value significantly increased or current interest rates are low. You may even be able to:

  • Shorten your loan’s term to save even more money

  • Refinance to a lower interest rate which might also lower your monthly payments

  • Convert your adjustable-rate mortgage (ARM) to a fixed-rate loan which will keep your payments safe from possible interest rate increases

  • Combine a first and second lien to a single loan for simplicity and savings

  • Consolidate debt from higher interest rate credit cards or subordinate financed loans into one loan which may result in lower monthly payments

  • Turn your home equity into cash


Refinance Options


Cash-Out Refinance*

A cash-out refinance allows you to take cash out of your home equity by replacing your current mortgage with a new loan that is more than the amount owed. This option can help you pay for major expenses like college tuition, debt or home improvements.

*Appraised property value may affect loan amount.

 

Adjustable-Rate Mortgage (ARM)

Typically adjustable-rate mortgages offer low introductory rates and payments that can change periodically after the initial fixed-rate period. An ARM could be the right choice for you if you plan on staying in your home for just a few years, you’re expecting a future pay increase, or the current interest rate on a fixed-rate mortgage is too high.


Fixed-Rate Mortgage

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. You can select a 30-, 20- or 15-year term, but keep in mind lower term options have higher monthly payments which means you are building home equity faster. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.

Need additional assistance? Please contact Lake Tahoe Mortgage
 

 

Renovation Loans
Turn a Fixer Upper into Your Dream Home

When shopping for a home, you may come across properties that aren’t quite what you’re looking for but have the potential to be your dream home with some repairs or renovations. With a renovation loan, you can roll the cost of financing or refinancing a home and repairs into one loan – saving you time and money.

HomeStyle Renovation Loan

You can use a HomeStyle renovation loan to cover costs of repairs, remodels, renovations or energy-efficient improvements on a primary residence, a second home or an investment property. There are no required improvements or restrictions on the types of repairs allowed or a minimum dollar amount for the repairs. However, repairs or improvements must be permanently affixed to the real property, add value to the property, and be completed by a licensed contractor.

Limited 203(k) Rehabilitation Mortgage

In addition to funding your new home, an FHA Limited 203(k) can provide up to $35,000 (including a contingency reserve) in additional funds to help make a few non-structural repairs or renovations such as updating a kitchen or bathroom, adding new flooring, purchasing new appliances, or repairing the roof.

Standard 203(k) Rehabilitation Mortgage

If your potential dream home needs more than $35,000 in renovations or the repairs are structural, the Standard FHA 203(k) might be the right solution. This program removes the restrictions of the limited option to allow for major home remodeling. A Standard FHA 203(k) can provide additional funds* to help with eligible repairs including moving or removing walls, minor pool repairs, and landscaping.

*Final disbursement of funds is subject to final inspection.

If you are interested in a renovation loan, please contact Lake Tahoe Mortgage

 
 

Reverse Mortgages
Retire in a Home that’s Right for You


A reverse mortgage is a way to turn the equity in your home into cash which is usually tax free* without having to make monthly mortgage payments. Instead of monthly payments, the loan is taken against a senior’s home equity and repaid in one lump sum when the last borrower leaves the home. As part of the loan, the borrower is required to continue paying property taxes, insurance and maintenance (and HOA fees, if applicable). These loans can potentially help seniors gain financial independence from increasing living expenses.

*This information does not constitute tax advice. Please consult a tax advisor regarding your specific situation.

Reverse Mortgage Eligibility

  • One borrower must be 62 years or better

  • Own your home and have equity

  • Home is required to be your primary residence (live in your home 6+ months per year)

  • Property must be a single-family home, 2- to 4-unit dwelling or FHA-approved condo

  • For a home purchase, you must have an adequate down payment for your new home based on your age*

    *Not available in all areas. Please contact Lake Tahoe Mortgage reverse mortgage planner for more details.
     

  • No credit score requirements, some income and credit qualifications apply to ensure you have the ability to pay taxes and insurance


Potential Advantages of a Reverse Mortgage

  • Receive money from your home equity which is usually tax free.*
    A reverse mortgage makes payments to you from your accumulated home equity, which may enhance and extend your retirement goals. You can receive your money in a lump sum, line of credit, monthly payment or a combination of all three. However, if you choose a line of credit, you may have the option of paying down the line if you want to have less cash and increase your equity.

    * This information does not constitute tax advice or financial planning advice. Please consult a tax advisor for tax advice and a financial planner regarding enhancements to retirement plans.
     

  •     Eliminate your monthly mortgage payment.
    With a reverse mortgage, you will not be required to make a monthly payment during your lifetime as long as you live in your home, pay taxes and insurance, and maintain the home (and pay HOA fees, if applicable).

  •     Never owe more than what the home is worth.
    When you permanently move out of your home, whether you sell it or pass away, neither your estate nor your heirs are responsible to pay the deficit if the balance owed on your reverse mortgage exceeds the home value. If your heirs want to keep your home, they can purchase it for 95% of the current appraised value.

    *There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes, insurance and maintenance (and HOA fees, if applicable). Credit is subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.
     

  •     Bridge the Medicare gap from age 62 to 65.
    Many seniors delay retirement until they are 65, because they cannot afford to pay for their health insurance before Medicare kicks in. By utilizing proceeds from a reverse mortgage, you can avoid paying income tax on money drawn from your IRA or other accounts to help keep your retirement funding plan* in place without diminishing your current assets.

     *This information does not constitute financial planning advice. Please consult a financial planner regarding enhancements to retirement plans.
     

  •     Delay Social Security payments to increase monthly income.*
    Since proceeds from a reverse mortgage do not count toward your income, you can delay taking money out of your IRA and avoid paying additional penalties and/or taxes. If you have not drawn Social Security yet, you should consider discussing this with your financial and tax advisors.

    *This information does not constitute tax or financial planning advice. Please consult a tax advisor and/or financial planner regarding your specific situation.
     

  •     Pay for long-term care expenses.
    With the proceeds from a reverse mortgage, you could purchase long-term care insurance to handle these expenses without losing your home in the process

 

Types of Reverse Mortgages


Proprietary Reverse Mortgages

Private loans backed by the companies that develop them.

Home Equity Conversion Mortgages (HECMs)

Federally-insured reverse mortgages backed by the U. S. Department of Housing and Urban Development (HUD). HECM loans enable you to withdraw a portion of your home’s equity and can be used for any purpose. How much you can borrow with a HECM or proprietary reverse mortgage depends on several factors, including:

  • your age

  • the type of reverse mortgage you select

  • the appraised value of your home

  • current interest rates, and

  • a financial assessment of your willingness and ability to pay property taxes and homeowner’s insurance.



Home Equity Conversion Mortgage for Purchase (H4P)

An H4P (a type of HECM backed by the FHA) enables senior homebuyers to purchase a new primary residence that better suits their needs and obtain a reverse mortgage in one transaction. You can use an H4P if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing. This type of HECM reverse mortgage, if it is offered in your area, may allow you to:

  • Build a new customized home

  • Relocate closer to friends and family members

  • Purchase a home in senior housing community

  • Downsize to a smaller, easier-to-maintain home

  • Purchase a primary residence suitable for your current needs

  • Move into a new home that’s easily accessible with modern amenities



To learn more about reverse mortgages, please contact Lake Tahoe Mortgage

USDA/Rural Development Loans

Live Comfortably Outside of City Limits

Home loans guaranteed by the United States Department of Agriculture (USDA) provide affordable financing options for properties located in designated small towns, suburbs and exurbs. This program helps eligible low- to moderate-income families achieve homeownership by offering a no down payment option.

USDA Loan Highlights

With flexible requirements, USDA loans feature:
 

  • 100% financing + required guarantee fee = 102% of the appraised value

  • Low FICO score requirements

  • Low interest rates

  • Low closing costs

  • Gift funds can be used for closing costs

  • 30-year, fixed-rate mortgage

 

USDA Loan Eligibility

Eligibility is based on the property size, location and condition along with income and other qualifying factors. Some of these requirements include:
 

  • Property must be located in a USDA designated rural area

  • Maximum loan limits vary based on location

  • Household members can have a total income of up to 115% of the medial income for the area

  • Household must be able to afford the mortgage payment, including property taxes, homeowners insurance and the annual guarantee fee payable on a monthly basis

 

Interested in a USDA loan, please contact Lake Tahoe Mortgage

 

VA Loans

Welcoming Veterans Home

We are proud to help our Service Members and Veterans achieve the American Dream of homeownership.

Home loans backed by the Department of Veterans Affairs (VA) provide affordable home financing options for eligible Service Members, Veterans and surviving spouses.

VA Loan Highlights

Since VA loans often require no down payment* with lower closing costs, you can help keep your savings secure. VA loans also feature:

  • No prepayment penalties

  • No private mortgage insurance (PMI)

  • 100% financing with full VA entitlement* 

  • Fixed- and adjustable-rate mortgages 

  • VA financing fees can be “rolled” into the loan amount

  • Variety of eligible property types, including townhomes and VA-approved condos

    *A down payment is required if the borrower does not have full VA entitlement, or if the loan amount is greater than $484,350.

 

VA Loan Eligibility

In order to be eligible for a VA loan, you must first obtain a valid Certificate of Eligibility (COE). Your COE is based on length of service or service commitment, duty status and character of service.

VA Loan Programs

Adjustable-Rate Mortgage

If you are currently serving in the military with a chance of relocating in the next few years, the flexibility of an adjustable-rate mortgage (ARM) could be the right option for you. ARMs offer lower introductory interest rates that can change after the initial fixed-rate period. Depending on market fluctuations after this initial fixed-rate period, your monthly payments could change due to rates increasing or decreasing.

Fixed-Rate Mortgage

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. You can select a 30- or 15-year loan term. The main difference is the 15-year option has higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.

Cash-Out Refinance

If you’re already a homeowner, a cash-out refinance may help you pay for major expenses like college tuition, debt or home improvements. This option allows you to take cash out of your home equity by replacing your current mortgage with a new loan that is more than the amount owed. You can also refinance a non-VA loan into a VA loan with a cash-out refinance.

Interest Rate Reduction Refinance Loan

An interest rate reduction refinance loan (IRRRL) may help lower your interest rate and reduce your monthly payments by refinancing your existing VA loan. You can also refinance an adjustable-rate mortgage (ARM) into a fixed-rate mortgage with this option. However, you cannot receive cash from loan proceeds with an IRRRL.

 

If you are interested in a VA loan, please contact Lake Tahoe Mortgage

 

Incline Village, Nevada  |  775-831-9555  |  info@LTmortgage.com  |  © 2018 by Lake Tahoe Mortgage, LLC