We offer a variety of home mortgage products to select from and we work with you to find the best fit for the long term of your mortgage. It is important that you have the right product, terms and payment structure for the life of your loan. Read on to learn more about the main products offered in the industry today.

Conventional Loans

A Conventional Loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). It is typically fixed in its terms and rate.

A conventional loan is a 30-year fixed rate mortgage. That means it has a fixed interest rate for the 30-year term of the loan. Conventional loans may be “conforming” and “non-conforming”. Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Nonconforming loans don’t meet Fannie Mae or Freddie Mac qualifications, but that are still considered conventional. Jumbo loans are one example of a conventional loan that does not meet Fannie Mae or Freddie Mac guidelines of $417,000 max loan amount.

Most conventional mortgages have either fixed or adjustable interest rates. Typical fixed interest rate loans have a term of 15 or 30 years. A shorter-term loan usually results in a lower interest rate. Adjustable-rate mortgages, or ARMs, fluctuate in relation to the rate of a standard financial index, such as the LIBOR.

FHA Loan

An FHA loan is a loan insured against default by the FHA. In other words, FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay.

Typically, FHA mortgages do not require more than a 3-5 percent down payment. Unlike traditional loans, this money may also be a gift to the home buyer and does not need to be secured as the home buyer’s own money.

The FHA does not lend the money; it simply insures that the total mortgage will be paid to the lender if the buyer defaults. It is always the decision of the private lender (a bank, credit union, or savings and loan) to decide whether or not they will lend the money.

The FHA loan guidelines are more relaxed than conventional loan guidelines; this includes less strict regulations about past bankruptcies and/or foreclosures, job requirements, use of alternative credit, and debt-to-income ratios. The FHA ensures that their interest rates remain competitive with the interest rates of conventional loans.

FHA loans were originally created to help first-time buyers; people who are not first-time buyers may qualify, however, the FHA does not allow anyone to have more than one FHA-insured loan at a time.

USDA Loans

USDA stands for United States Department of Agriculture. In the past, USDA Loans were considered “farm loans”, mostly used to purchase properties in agricultural areas. That is not the case with today’s USDA Loans. In fact, properties in almost every area of the country outside major metropolitan areas can be purchased with a $0 down USDA Loan today.

Some of the eligibility standards that determine if you qualify for a USDA loan for your home include what county and zip code the home resides in, your current income and credit history, as well as the number of dependents you can claim. Because these guidelines are very specific, it is important to work with a company that has experience dealing with USDAgovernment financing to help determine your eligibility.

A USDA loan provides low-cost insured home mortgage loans that suit a variety of options. If you’re unsure about your credit rating, or have concerns about a down payment, ENG Lending’s USDA mortgage loans can give you piece of mind with super low closing costs and flexible payment options.

For starters, a USDA loan is the only loan program offered to the general public that allows financing 100% of your home’s value. That means no down payment of any kind. In addition, this is the only loan program if you are not a veteran that offers no monthly mortgage insurance payments, which means cheaper monthly payments and more money can go to paying off the mortgage each month. USDA loans are made even more affordable through very competitive fixed interest rates, ensuring your payments will not increase every month.USDA loans also offer affordable 30-year terms.
USDA loans are perfect for first time homebuyer and for the third or forth time homebuyers. If you are looking for a great mortgage program with a zero down payment, no monthly mortgage insurance, and a great competitive fixed interest rate, you have found your loan program.

VA Loans

VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms. Save you hundreds of dollars every month, by eliminating the need for PMI (private mortgage insurance) which is an extra monthly expense required with conventional loans.

Key advantages of A VA Loans: they allow you to purchase a home with $0 down. Most other loans require as much as 20% down. You can lower your interest rate. VA Loans typically have lower interest rates than can be found with any other loan program. A VA loan is perhaps the most powerful and flexible lending option on the market today. Rather than issue loans, the VA instead pledges to repay about a quarter of every loan it guarantees in the unlikely event the borrower defaults. That guarantee gives VA-approved lenders greater protection when lending to military borrowers and often leads to highly competitive rates and terms for qualified veterans.

Let’s talk about your situation and determine the best fit for you.

All products and rates subject to change without notice.