Academy Mortgage Loan types, Benefits and How to Apply

Academy Mortgage is recognized nationwide for commitment to unwavering lending services in today’s rapidly changing economy.

This is achieved through:

  • retainment of the industry’s best mortgage professionals
  • Delivery of exceptional mortgage services
  • Focused in retail mortgage banking 100%
  • Provision of market-lending mortgage solutions and tools.

Academy Mortgage Loan types

  • Conventional Mortgage: this is any mortgage loan that is not guaranteed or insured by the State or federal government.
  • This loan requires a higher down-payment from 5%-20%.
  • Conventional loans has higher income and credit score criteria than the government loan.

Types of conventional loans

  • Fixed-rate loans: this have 30 or 15 years term But, Academy mortgage offers 10 years, 15 year, 20 year, 25 year and 30 year fixed rate options.
  • Adjustable-Rate Mortgage (ARM): Academy offers a 3/1 ARM, 5/1 ARM, 7/1 ARM and 10/1 ARM.

The interest rate stays constant for a period of time then fluctuate based on market conditions.

Categories of Conventional Loans

  • Conforming: this is when a loan meets the underwriting criteria set forth by the government-sponsored entities such as Fannie Mae and Freddie Mac.

Generally, the Loan amount and a mortgage loan amount below $417,000 determine whether it’s conforming or not.

  • Non-conforming: is when a loan does not meet all the requirements set forth by the government-sponsored entities.

Generally, a mortgage loan amount above $417,000 is considered non-conforming.

Benefits of Conventional Loans

  • Lower closing fee and cost
  • No government stipulations and prepayment penalties if you refinance or sell your house.
  • Buyer has immediate equity in the property
  • Repayment terms are more favorable generally.
  • No private mortgage insurance is required with a 20% down payment which a great advantage.
  • The Loan is quick to possess that is, fewer bureaucratic hurdles.
  • FHA Loans: this is designed for the benefit of first-time homebuyers and buyers who do not have a lot of money or perfect credit card to put down.

Benefits of FHA

  • No prepayment penalty
  • 100% gift funds acceptable for down payment and closing costs.
  • Flexible qualification guidance.
  • Low down payments (as low as 3.5% of the purchase price)
  • Fixed-Rate and Adjustable-Rate mortgages available.
  • VA Home Loan: this helps veterans finance the purchase of homes with a favorable loan terms at a lower interest rate compared to other mortgage types.

Benefits of VA Home Loan

  • Negotiable interest rate
  • Mortgage insurance is not required
  • Due to temporary financial difficulty VA assistance to veterans homebuyers is in default
  • Down payment is not required
  • Ability to finance the VA funding fee
  • 5% down payment and exemption for Veterans receiving VA compensation.
  • Comparable closing cost with other financing types
  • An Assumable mortgage.
  • Right to prepay without penalty
  • Gifts and seller contributions accepted toward closing costs.
  • Buyer informed of property’s reasonable value.
  • USDA Home Loan: This loan program provides 102% financing for low-to-moderate-income home buyers that wants to buy home in a rural development area.

Benefits of USDA Home Loans

  • Down payment is not required
  • No minimum investment or post-closing reserves required.
  • 100% financing on a fixed 30-year loan based on the appraised value of the home.
  • Competitive interest rate
  • Gifts or grants permitted from friends, family and other non-profit agencies
  • Upfront guarantee fee may be included in financing
  • Depending on the appraised value lenders fees and closing costs may be contributed by the seller or maybe eligible to include in the loan.
  • State Housing Agency Loan: this loan is designed to support strong, viable communities and disadvantaged populations.

Benefits of State Housing Agency

  • A variety of down payment assistance programs for eligible buyers
  • Low interest rates.
  • Refinancing your Mortgage: if you want to refinance your mortgage, you pay off your existing mortgage and replace it with a new mortgage that has lower interest rate, monthly payment or term period.

Benefits of refinancing

  • Change the mortgage length
  • Get a lower interest rate and make lower payment
  • Get cash from the equity in your home
  • Convert from an Adjustable-Rate Mortgage (ARM) to a Fixed-Rate Mortgage
  • Build equity more quickly

To apply, visit their portal here.

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