GMH Mortgage offers a wide array of unique loan program which are tailored to each of our borrower’s individual needs. Our loan officers will expertly guide you through the mortgage process to find the best rates and options that match your current and long term goals for you and your family. We continually ensure our customers understand the nuances of each of our programs with down to earth conversation and discussing the best options available. Below is a sampling of just a few of the current loan offerings at GMH Mortgage:
Conforming vs Non-conforming
You’ll often see the words “conforming” and “non-conforming” when you’re reviewing various loan options. A conforming loan is a mortgage that falls within specific government sponsored (Fannie Mae and Freddie Mac) guidelines. There are some reasons an applicant may not meet the criteria for a conforming loan including: credit history, recent bankruptcy, debt load, or problems securing documents surrounding employment, income, or assets. When a borrower’s criteria does not meet (or “conform” to) the guidelines of a conforming loan, they can explore various non-conforming loan options. Non-conforming loans typically offer a wider range of acceptance and will often have a higher interest rate than conforming loans.
Insured by and named after the Federal Housing Administration, FHA Loans offer a low down payment, flexible qualifying requirements and are tailored to fit a variety of needs. FHA loans are perfect for homebuyers with less than stellar credit or with less cash available for an initial down payment than usually required. Another advantage of an FHA loan is if want to sell your home, the buyer can “assume” the loan you have.
Veteran Affair or VA loans offer military veterans and active military members 100% financing and have flexible requirements and qualifications. These mortgages do not always require a down payment and are guaranteed by the Department of Veterans Affairs, so they do not require mortgage insurance. There's also no minimum credit score requirement which provides added flexibility to those servicemen and women who qualify. GMH Mortgage has been and continues to be an active supporter of our Veterans and Military personnel throughout our company history. We proudly offer these and other military-based programs to those who have sacrificed so much for our country’s freedom.
Backed by the United States Department of Agriculture (USDA), USDA Loans offer 100% financing, minimal down payment, competitively low rates and flexible income requirements for mortgages located in rural areas. There are several types of USDA loans that help low- or moderate-income borrowers buy, repair or renovate a home in a rural area. GMH Mortgage was recently recognized by USDA Rural Development as one of the top ten mortgage lenders for USDA Rural Development's Guaranteed Rural Housing loan program.
An Adjustable Rate Mortgages or ARM, carries an adjustable interest rate. Typically a borrower will start with a lower interest rate than that of a typical Fixed Rate Mortgage, but the amount of the monthly house payment will adjust and change over time as interest rates fluctuate. This loan is perfect for those who only plan to own their home for a shorter time or if interest rates drop at a certain time.
Homes with a larger than average purchase price are often referred to as a Jumbo mortgage or “non-conforming loan.” Jumbo loans allow borrowers to secure financing much greater than the conforming limits set by regulations for homes in most areas. In 2016, the conforming loan size limit for a typical home was $417,000, with exceptions as high as $625,500 in certain high-priced markets. In some cases we have the ability to finance up to 95% of the loan.
These loans allow the homeowner to make lower monthly payments by only requiring the interest payment for a set period of time, typically in the 5-10 year range. Interest-Only Loans are perfect for borrowers whose income fluctuates or is anticipating a sizeable increase in their future income.
A Conventional Loan refers to a loan that is not backed, insured, or guaranteed by the US government. These loans can be either conforming or non-conforming.
GMH offers a wide variety of local programs that are specific to that area. These types of loans are sponsored by regional Housing Finance Agencies (HFA), and typically carry rates lower than the current market, resulting in lower loan payments. There are numerous other advantages to these programs that your GMH Loan Officer can help provide information and guidance specific to your market.
Loans that are generally approved for a term of 15 or 30 years. A 15-year loan provides savings by shaving off the length of time you pay interest on the loan. A 30-year mortgage offers more time to repay the loan and generally provides the homeowner with a lower monthly payment amount. Fixed Rate Mortgage Loans are desirable because the interest rate and payment amount will not Increase over the life of the loan.