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PRODUCTS
 

Shea Mortgage Inc. offers a variety of loan programs to meet your needs:

Adjustable Rate Mortgage (ARM): A mortgage which begins with a low interest rate, fixed for a specified initial period of the loan term, then "adjusts" at specified intervals during the remainder of the loan term. Adjustments are based on an "index" (the value of which can change over time) plus a "margin." The index plus the margin determine the fully adjusted rate, which is typically subject to certain limits (ceilings and floors). These limits are referred to as "caps."

Fixed Rate Mortgage: A mortgage with monthly payments that remain the same throughout the life of the loan because the interest rate is fixed.

FHA Mortgage: A mortgage for which the lender is insured against loss by the Federal housing Administration, with the borrower paying the mortgage insurance premium. The major advantage of an FHA mortgage is that the required down payment is very low, however, the maximum loan limit is also low.

VA Mortgage: A mortgage for which the lender is insured against loss by the Veterans Administration. The primary advantage of such a mortgage is that the borrower can put little or no money down. While the maximum loan limit is greater than that of an FHA mortgages, the borrower still needs to pay the mortgage insurance premium. Only Veterans are eligible for this type of mortgage.

Balloon Mortgage: A mortgage which typically offers low, fixed rate payments as though the mortgage was scheduled on a 30 year term. But instead, the loan has a shorter term (for example, 5, 7 or 10 years) which ends with a single large payment (a "balloon payment") for all the remaining principle.

USDA Loans

Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

Approved lenders under the Single Family Housing Guaranteed Loan program include:

  • Any State housing agency
  • Lenders approved by:
    • HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities
    • the U.S. Veterans Administration as a qualified mortgagee
    • Fannie Mae for participation in family mortgage loans
    • Freddie Mac for participation in family mortgage loans
  • Any FCS (Farm Credit System) institution with direct lending authority
  • Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs

Terms: Loans are for 30 years. The promissory note interest rate is set by the lender.

There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan. 

 

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