Loan Programs
Resources
There are many different types of loan products available. Your Affinity Loan Officer will help you determine the best one for you.
Conventional Loan Programs
Government Loans
State Bonds
Portfolio Loans
Adjustable Rate Mortgages (ARMS)
Special Loan Programs
Conventional Loan Programs
Conventional loan programs are offered by almost all lenders and brokers. These can range from fixed loans (30 year, 15 year, 10 year, etc.) to adjustable rate mortgages (5/1 ARM, 3/1 ARM, etc.). When you select a conventional loan program, these loans are "bought" by an investor on the secondary market like Fannie Mae or Freddie Mac. Because they buy these loans from lending institutions, they determine the qualifying factors such as credit rating, debt–to–income ratios and interest rates.
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Please note: Although conventional loan products are "sold" to secondary market investors, the borrowers do not send payments to the investor (known as servicing). Instead, the loans are serviced by the original lender or other lenders who agree to service the loan. When you select a conventional loan product, you generally have the option of servicing sold or servicing retained loans. If you select servicing retained, you make your payments to the original lender. If you select servicing released, your loan will be sent to another mortgage company before it is bought by an investor. There may be interest rate or underwriting advantages to either choice.
Government Loan Programs (FHA and VA)
Government loans insure lending institutions repayment of loans by the federal government in the event that a borrower defaults on the mortgage. Government loans offer low down payment (0% for VA), easier qualifying conditions, and more flexibility for a down payment source (gifts, seller contributions, down payment assistance).
State Bonds
State Bond programs are subsidized by federal funds allotted to each state. They often feature a below–market interest rate and low down payment qualifications.
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Portfolio Loan Programs
These loan programs are offered by specific banks and are not sold on the secondary market or insured by the government. Qualifying guidelines are determined by the originating lender and can be more flexible on income, past employment, and credit history than other products. These loans usually have a higher interest rate than other loan products and are serviced only by the originating lender.
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Adjustable Rate Mortgages (ARMS)
An Adjustable Rate Mortgage or ARM is a loan program that offers a fixed rate for a determined time period. Introductory rates are often much lower than 30–year fixed rates. When that introductory period of time is up, the interest rate varies with the market conditions.
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Special Loan Programs
In addition to the wide variety of standard loan programs, HomeStreet Bank's Affinity Lending Center has special loan programs that make it easier for Hometown Customers to qualify for a mortgage.
Programs for first–time homebuyers
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