Home Lending residential loans home loan programs

Residential Loan Programs

The following is a partial list of programs offered by Horn & Co. Financial with a brief description of the key elements of each.


Fixed Rate Loans
Get a stable rate and consistent monthly payment.

A Fixed Rate Loan may be right for you if:
Your income is consistent and reliable You plan on staying in your new home longer than seven years You're looking to buy a home with the lowest down payment possible You're comfortable paying a slightly higher interest rate in exchange for the stability of a fixed monthly payments

Fixed Rate Loan details:
A Fixed Rate Loan maintains the same interest rate for the life of the loan. That means the principal and interest portion of your monthly mortgage payment will never change. In exchange for that stability, you may have a higher interest rate than you would with an adjustable-rate loan.

A Fixed Rate Loan may be right for you if:
A Fixed Rate Loan maintains the same interest rate for the life of the loan. That means the principal and interest portion of your monthly mortgage payment will never change. In exchange for that stability, you may have a higher interest rate than you would with an adjustable-rate loan.

On your terms:
Fixed Rate Loans are available with different length terms, typically 15 or 30 years. Usually, the longer the term, the lower your monthly payment will be.

Paying your loan off early:
In general, Fixed Rate Loans don't carry a prepayment penalty, which means you can pay them off early without having to pay a fee.

Traditional ARM Loans
A Traditional ARM Loan is just like it sounds: nothing fancy, just a lower initial interest rate and an annual adjustment after the initial "lock" period.

You'll enjoy a lower initial rate for a set period of time (usually one, three or five years) in exchange for the risk of increases or decreases later. Periodic and lifetime rate caps determine how much your rate can change.

Option ARM Loans
Option ARM Loans can adapt to fit your lifestyle. They offer flexible payment options and qualification standards.

Traditional home loan payments are the same each month for the term of the loan. But with an Option ARM Loan, you can choose from up to four payment choices each month—which gives you the flexibility to change your mortgage payment as your needs change.

1. Minimum payment

2. Interest-only payment

3. Fully amortized payment

4. 15-year payment

Interest Only Loans
Horn & Co. Financial offers Interest Only home loans with a locked-in rate for 1, 3, 5, 7 or 10 years. You can use these loans to purchase a home or refinance an existing mortgage. Best of all, you never have to worry about negative amortization! The interest only loans are based on the 1-Year LIBOR Index. Your rate will adjust after the initial fixed rate period. Subsequent adjustments to the interest rate and payment will occur annually.

This product is available for Owner Occupied and Second Homes, Investment Properties up to 4 units, and Co-ops. Customers live with the security of knowing your payments are set for a fixed period of time!

Custom Construction Loans
Custom Construction Loans assist our customers in building the home of their dreams! We can finance the purchase of a lot and the construction of 1 or 2 unit owner occupied house (1 unit second home). Modular homes, kit homes and log cabins are acceptable in some cases.

Here are some of the benefits:

1. One loan (Construction & Permanent) –one-time close, one set of fees and closing costs.

2. Closed prior to construction in the buyer's name – interest may be tax-deductible.

3. Interest-only during the construction period, rolls to permanent financing at completion.

4. 6, 9, 12 or 18-month terms available (18-month term requires a 0.375% point add).

Investment Loans
We're taking care of business with Investment Loans.

Investing in property can be a wise financial move. We have a variety of loans to help you finance your investment in the easiest way possible. You can even refinance your primary residence to get cash out for your investment.

Lot Loans
Use a Lot Loan for the purchase or refinance of developed lots. This can be property that you plan to build a primary residence or second home. It can also be used to purchase a lot adjacent to your existing primary residence.

You can use a Lot Loan to purchase land even if you are not ready to build today. Lot acquisition loans are available as fixed rates for a 20-year term.

There are restrictions so be sure to speak to one of our Loan Officers for details on this program.

Vacation Home Loans
Live where most people play.

Ready to buy that vacation home? We can help!

We provide financing for vacation homes, also known as second homes. Many of our loan programs are available for purchase or refinance of these types of homes. We would be happy to discuss the requirements.

Home Equity Loans
Move cash from your home to your pocket with our home equity lending choices. Whether you want to make home improvements, take a dream vacation or do anything in between, the first step is finding the loan or line that's right for you.

Horn & Co. Financial's Equity loan options are designed to fit your needs—with flexible product and payment options. Which works best for you—a Home Equity Loan with a fixed rate and stable payments? or, an Equity Line of Credit account that offers a variable rate line of credit with a Fixed Rate Loan Option?

No Mortgage Insurance
This feature is available with Option ARM Loans and Fixed Rate Loans.

Usually mortgage insurance is required any time you apply for a loan with less than 20% down. We offer a loan feature that eliminates mortgage insurance by covering it in your interest rate. Although your initial interest rate might be slightly higher, interest is usually tax-deductible (unlike mortgage insurance premiums).

With this feature, you have two ways to lower your interest rate:

1. Your regularly scheduled payments build equity reducing your principal to 80% of the home value we used to originate your loan.

2. If your home appreciates, your principal becomes 75% or less of the estimated current market value. (Some other conditions apply.)

Advantages:
10.1% down means more cash in your pocket. No monthly mortgage insurance premium; it's covered in your overall interest rate. A variety of fixed and adjustable rate loan options to choose from. Additionally, on the adjustable rate mortgage (ARM) program:100% of your down payment can come from a family member's gift for qualified borrowers. No impound/escrow accounts for property taxes and hazard insurance is required.

Consider this feature if you:
Are willing to take on a slightly higher interest rate possibly to save money on taxes (consult your tax advisor), with the potential to lower that rate in the future Want an opportunity for the interest rate to be reduced in the future when your loan balance decreases, your home's value increases, or a combination of both

Low Downpayment
This feature is available with Option ARM Loans and Fixed Rate Loans.

We offer home loans make it easier for low-to-moderate income (LMI) borrowers to achieve homeownership. Designed to make homeownership more affordable and accessible, these products offer advantages such as low down payment (which can come from a variety of sources), are available for home purchase or refinance and have no income limits in targeted census tracts.

Advantages:

Loan amounts up to $359,650. Condos and PUDs are acceptable. Down payment can come from a variety of sources, including an unsecured personal loan and gifts from a family member.

Consider a low down payment if you

Are first-time homebuyer who needs a little help getting started. Have limited cash for a down payment and closing costs. Would like to use other sources to get money for closing costs.

Low Documentation
This feature is available with Traditional ARM Loans, Option ARM Loans, and Fixed Rate Loans.

Horn & Co. Financial understands that not everyone gets a paycheck every two weeks. For those who want to put 20% down, our we offer a low doc feature that works very well—particularly for people whose work situations don't fit the standard mold. It reduces the amount of paperwork you need to gather—eliminating many of the steps required when applying for a loan.

Advantages:

No verification of your income (and in some cases, assets). Streamlined loan process: less paperwork and less hassle.

Consider a Low Documentation loan if you:

Are self-employed, working at home, a small business owner, on a commission-based salary or retired and want to minimize the amount of paperwork you need to submit.

40 Year Terms
This feature is available with Option ARM Loans.

With this option, loan payments are calculated on a 40-year term versus the more traditional 15 or 30. This reduces the monthly payment quite a bit. Because the 40-year term is available on our Option ARM product you also get the advantage of up to 4 monthly payments so it's easy to make larger payments in those months when you have more disposable cash, or when you want to accelerate the amortization on your loan.

Advantages:

Some advantages are Lower monthly payments. It Leaves you more cash each month for other uses. Also if you own a rental property, it's a better way to manage your monthly cashflow

Consider a 40-year term if:

You want to minimize your monthly payment. You're trying to minimize cash expenses on an investment property. You plan to be in the house 5 years or less and home values in your area are appreciating.

100% Financing
We can help buy with no money down! With an 80% first mortgage and a 20% home equity loan, you’ll have 100% financing and no need for a down payment. And with 80/20 financing, you may even:

1. Save money every month, by avoiding having to pay for private mortgage insurance (PMI).
2. Secure a lower rate, by avoiding jumbo financing.
3. Save your down payment for investments, moving costs or home improvements.
4. Save even more: there’s no penalty for paying off your home equity loan early.
5. Choose from a range of variable and fixed rate home loans.

Alternative Guidlines
Horn & Co. Financial understands that not all of our customers will fit guidelines for conventional financing.

In the spirit of reaching out to those customers, we have developed loan programs designed to take in to consideration your special circumstances. Because of the nature of these programs, we recommend that you speak directly to a loan consultant who can help you understand what we might be able to do for you.





Contact us for more information on Residential Loan Programs, or Apply For a Loan today.