Loan Programs

When it comes to choosing a loan program, one size does not fit all.  There are several loan programs that are available to choose from. Legacy Financial Services a California mortgage company have loan experts and advisors that can review your specific scenario and goals to help get the right loan for you.

The loan process may feel overwhelming, but keep focused on the end result.  When determining the right loan for you it is important that you discuss with your loan officer how long you intend to live or hold on to your property. 

The following list will help you understand the different loans that may fit into your budget and the long term goals you may have with your property.

Fixed Rate Mortgages

A fixed rate interest rate is one of the most common and popular loan programs available. The terms of a fixed rate mortgage can range from 10, 15, 20, 25 or 30 years. Most of the time there is no prepayment penalty and it can be paid off in full at any time.

The payment is calculated based on the term of the loan and “amortized” so that the loan is paid off by the last month of the term. The principal and interest monthly payment is based on that calculation....

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Adjustable Rate Mortgages (ARM)

Adjustable Rate Mortgages (ARM) loans can change during the term of the loan.  The interest rate on an ARM is usually lower in the beginning of the loan and in most cases is lower than the market condition at the time it is taken out.

A person who is making a purchase or doing a refinance can usually qualify for a higher loan amount with an ARM.  In many instances this can help a buyer purchase a more expensive home...

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Interest Only Loans

An Interest Only loan does not pay down any principal on a balance unless extra money is added to the monthly payment.

Most interest only loans have a specific term that is allowable to make only the interest payment.  At the end of the term the loan will become fully amortized that includes the balance and number of remaining years of the loan to include the principle and interest.  In most cases the payment will be much higher.

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HARP 2.0 Loans

The Harp 2.0 program was designed to help homeowners refinance their homes who are “underwater”. That means that a homeowner who owes more than their property is worth can refinance their home to lower their interest rate and monthly payment.

Many property owners were severely hit with property values decreasing only to have their loan balances higher than what the property is worth. They could not refinance a property that had no equity and in many cases chose to walk away from their properties.

The government created a program that could help these property owners that fit certain criteria...

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FHA Loans

FHA Home Loans for Purchase or Refinancing

The FHA (Federal Housing Administration) loans are not made directly by FHA. They are loans that are insured and guaranteed in case of a default to the lender who is issuing the loan.

An FHA loan can be for a purchase or refinance of a property. These loans are appealing to first time buyers or individuals who have small down payments. The qualifications are easier than most conventional loans because they allow lower credit scores and are more flexible with income requirements...

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Reverse Mortgages For Refinance or Purchase

The Golden Years – a time to relax and enjoy your family. A time to travel and do the things you have always wanted. For some people though, financial burdens keep them from enjoying their retirement years.

Many retirees do not have enough social security or retirement income to live comfortably. They are strapped financially and have constant worry about how they are going to pay their bills.

There are also many other individuals who may have enough money to pay monthly expenses, but they do not have the extra cash to spend on luxuries such as vacations, memberships and home improvements...

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VA Loans

To be eligible for a VA (Veterans Administration) loan an individual must have served in active duty for 180 days during peacetime or at least a 90 day service during a war with an honorable discharge. Also eligible is a spouse of a military person killed or missing in action.

Qualifying for a VA loan is no different than qualifying for any other loan. The same applications are completed as a regular loan; however, the certificate of eligibility and a VA approved appraisal must be submitted...

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