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TYPES OF HOME

WELCOMEA house is probably one of the biggest purchases you’llever make. Choosing a mortgage isn’t as simple as itsounds. That’s because there are many types ofmortgages available and they’re made up of differentcomponents—from the interest rate to the length of theloan to the lender.Getting a home loan doesn’t have to be intimidating –especially when you understand the basics like options,features, and costs of a home loan. I have developed thisguide to help you understand and educate yourself on thedifferent mortgage loan types you have available.What you need to know to pick thebest mortgage for youPlease reach out if you have any questions, we are alwayshere to help!Jennifer RodgersReal Estate Broker / Owner517-398-2541jenniferrodgers@greenkeysellsmi.comwww.greenkeysellsmi.com

JENNIFERRodgersReal Estate Broker / Owner517-398-2541jenniferrodgers@greenkeysellsmi.comwww.greenkeysellsmi.comSHANNONPrainAssociate Broker517-937-7834shannonprain@greenkeysellsmi.comCALEBRiddleJORDANCulliverBRITTANYArnoldR E A L E S T A T E A G E N T SMEET THE TEAMRealtor ®517-395-5827calebriddle@greenkeysellsmi.comRealtor ®517-416-6329jordanculliver@greenkeysellsmi.comRealtor ®517-302-6798brittanyarnold@greenkeysellsmi.com

Green Key Real Estate is a full-service, fully licensed, Real Estate Marketingteam focused on our clients and our customer service. Working with sellersand buyers on existing homes. We stage homes, new and existing, and use aprofessional photographer for still photographs and a 3D multi-floor digitalwalkthrough to market our listings to stand out above the rest! Our knowledge of the market and our research techniques have proven thatwe price to optimize sales by getting 5 to 10% more for your house. A housethat looks amazing at the right price means a sale! This knowledge translatesto awesome negotiation skills for our buyers and leads to the best price fortheir biggest investment!ABOUT USOur knowledge of the market and our researchtechniques have proven that we price to optimizesales by getting 5 to 10% more for your house.

Also known as settlement costs, this is the amount of money you needto close the mortgage deal. Closing costs could include title insurance,escrow fees, lender charges, real estate commissions, transfer taxes,and recording fees.A mortgage with a variable interest rate, which adjusts monthly,biannually, or annually. Option-arms and hybrid mortgages are alsoconsidered adjustable-rate mortgages.Typically defined as someone who has not owned another property atany time during the three years prior to the date of the purchase.MORTGAGE TERMSCLOSING COSTSADJUSTABLE-RATE MORTGAGE (ARM)FIRST-TIME HOME BUYERWhen you buy points, you’re paying more upfront in exchange for alower interest rate, which means you pay less over time. Each pointequals 1% of the mortgage.POINTSA short-term loan is taken out against one property to finance thepurchase of a new property.BRIDGE LOANThe ratio of monthly liabilities and housing expenses divided by themonthly gross income of the borrower.DEBT-TO-INCOME RATIOA mortgage reserved for homeowners aged 62 or older who wish to taptheir home equity without paying monthly mortgage payments.REVERSE MORTGAGE

MORTGAGE OPTIONSMO RT GA GE O PT IO NS

A conventional loan is a type of mortgage loan that is not insured or guaranteedby the government. Instead, the loan is backed by private lenders, and itsinsurance is usually paid by the borrower.Though conventional loans offer buyers more flexibility, they’re also riskierbecause they’re not insured by the federal government. This also means it can beharder for you to qualify for a conventional loan.With a conventional loan, the lender is at risk if you default. If you can no longermake payments, the lender will try to recoup as much of the remaining balanceas they can by selling your house through a short sale process or evenforeclosure.Because of this additional risk to the lender, you’re required to pay privatemortgage insurance (PMI) on a conventional loan if you put less than 20% down.When you meet with a lender, they’ll ask for documentation like recent pay stubs,tax returns, bank statements, and other financial information. They want to makesure you have a steady income and can make your monthly mortgagepayments on time.You will also need a down payment to qualify for aconventional loan. Though you can put as little as 3% down when you get aconventional loan, we recommend putting at least 10% down. But 20% is evenbetter because then you can avoid paying PMI!WHAT IS A Conventional Loan

Conventional mortgage borrowers typically make larger down payments thanFHA borrowers, and they tend to have a more secure financial standing and areless likely to default. A larger down payment means lower monthly payments. Plus, with the ever-increasing mortgage insurance premiums on FHA loans, payments forconventional loans that don’t require private mortgage insurance can be muchmore manageable in comparison.In addition, with a conventional loan, you can cancel your mortgage insurancewhen the principal loan balance drops to 78% of the home’s value. FHA loanscharge mortgage insurance premiums for the life of the loan.CONVENTIONAL LOAN BENEFITSLO WIN TER ESTRA TESRE DUC EDPM IFA S T LO A NPR O C ESS I N GDO WNPA YME NTOP TIO NSVA RIO USTE RMLE NGT HS

An FHA loan is a type of loan from theFederal Housing Association for first-time buyers and for folks who mighthave a hard time getting approved for aconventional mortgage when buying ahome. Allowing down payments as low as 3.5%with a 580 FICO, FHA loans are helpful forbuyers with limited savings or lowercredit scores.The problem is, that an FHA loan cancost thousands more in the end. To get an FHA loan, you’d have to workwith an FHA-approved lender, whichcould be a bank, credit union, ormortgage company. Then, the FHAprovides a guarantee on the loan soyour lender doesn’t lose money.You'll need to satisfy a number ofrequirements to qualify for an FHA loan.It's important to note that these are theFHA's minimum requirements andlenders may have additionalstipulations.Simply put, we don’t recommend FHAloans, because they’re one of the mostexpensive types of mortgages. Youmight not realize this if you only look athow much money the FHA "saves" youon the front end. But if you want to winwith money, consider the total cost.WHAT IS A FHA LOAN

credit scoreThe minimum credit score for an FHA loan is 500. If your score falls between 500and 579, you can still qualify for an FHA loan, but you'll need to make a largerdown payment.Down payment fundsIf you've got a credit score of 580 or higher, your FHA down payment can be aslow as 3.5%. A credit score that's between 500 and 579 means you'll have to plunkdown 10% of the purchase price. The good news? It doesn't all have to come fromsavings. You can use gift money for your FHA down payment, so long as the donorprovides a letter with their contact information, their relationship to you, theamount of the gift, and a statement that no repayment is expected.Debt-to-income ratio (DTI)The FHA requires a DTI of less than 50, meaning that your total monthly debtpayments can't be more than 50% of your pretax income. This includes debts thatyou aren't actively paying. For student loans in deferment, your FHA loanunderwriter will include 1% of the loan's total as the monthly payment amount. Forother types of loans that you aren't currently repaying, underwriters will use 5% ofthe loan's total to calculate your DTI.WHAT IS A FHA LOANCL OSI NGCO STSLO WCR EDI TSC OREDOWNPAYMENTS ASLOW AS 3.5%VA RIO USTE RMLE NGT HSASSISTANCETO AVOIDFORECLOSURE

A VA loan is a mortgage loan that’sissued by private lenders andbacked by the U.S. Department ofVeterans Affairs. It helps U.S.veterans, active duty servicemembers, and widowed militaryspouses buy a home.VA loans wereintroduced as part of the GI Bill in1944, but they’ve becomeincreasingly popular in recent yearsThis type of loan is an attractiveoption because it’s pretty easy toqualify for and doesn’t require adown payment.VA Loan RequirementsIn order to get this loan when you'relooking to buy a home, militarypersonnel have to meet the VA’sspecific service requirements.Generally, you’re eligible if you fallinto one of these three categories:You’re an active duty servicemember or an honorablydischarged veteran who has 90consecutive days of active serviceduring wartime or 181 days of activeservice during peacetime.You have served more than six yearsin the National Guard or the SelectedReserve.You’re the spouse of aservice member who died in the lineof duty. WHAT IS A VA LOANIf you were to go through theapplication process, you would needa Certificate of Eligibility (COE) to showmortgage lenders that you qualify fora VA loan. You can apply for a COEthrough the VA website, by mail, orthrough your lender.

While a VA mortgage's qualifying requirements are more relaxed than those for aconventional loan, an applicant still needs to have decent credit and sufficientincome to buy a home. And the home being financed must serve as the primaryresidence.Credit score requirementsThe VA doesn’t set a minimum credit score to qualify for a loan. Instead, it requiresa lender “to review the entire loan profile to make a lending decision,” accordingto the VA.VA loan debt-to-income ratioThe VA also doesn't specify a maximum debt-to-income ratio. But if the totaldebt-to-income ratio is over 41%, lenders will need to provide proof of anapplicant’s ability to repay the loan.Down payment requirementsUnder most circumstances, you don't need to make a down payment. However, ifthe purchase price of the home is greater than its appraised value, you may haveto make up at least a portion of the difference.VA LOAN BENEFITSNO BORROWLIMITSNOPREP AYMEN TPENA LTYNO DOWNPAYMENTMINIMUMCREDITSCORENOPMI

Reverse MortgageA reverse mortgage is a home loanthat allows homeowners 62 andolder to withdraw some of theirhome equity and convert it into cash.You don’t have to pay taxes on theproceeds or make monthlymortgage payments.Jumbo LoansA jumbo loan is a mortgage used tofinance properties that are tooexpensive for a conventionalconforming loan. The maximumamount for a conforming loan is$510,400 in most counties, asdetermined by the Federal HousingFinance Agency (FHFA). Homes thatexceed the local conforming loanlimit require a jumbo loan.HELOCA home equity line of credit, or HELOC,is a second mortgage that gives youaccess to cash based on the value ofyour home. You can draw from ahome equity line of credit and repayall or some of it monthly, somewhatlike a credit card.ADDITIONAL LOAN TYPES

M A R T I NSchaeferGold Star | Branch Manager248-556-5373MSchaefer@GoldStarFinancial.comFINANCIAL EVALUATIONPreliminary financial evaluationCheck out your mortgage options and get a free preliminary financialevaluation- no hard pull on credit unless you are eligible.Click the link below: :https://connect.goldstarfinancial.com/partner/mschaefer@goldstarfinancial.com

“JEN WAS FANTASTIC AND SO PERSONABLE THROUGH THISEXPERIENCE. AS FIRST TIME HOME BUYERS SHE MADE IT EASYAND IN THE END WE ONLY HAD TO PUT IN 1 OFFER ON A HOUSEAND IT'S THE PERFECT HOUSE! COULDN'T BE HAPPIER WITH THESERVICE AND GUIDANCE THROUGHOUT OUR JOURNEY”TESTIMONIESJENNIFER HAS BEEN SO AMAZING THROUGH THE HOME BUYINGPROCESS. AS A FIRST TIME HOME BUYER I WAS A BIT NERVOUSGOING IN BUT JENNIFER TOOK THE TIME TO EXPLAINEVERYTHING TO ME AND MADE IT SO MUCH LESS STRESSFUL. IWOULD RECOMMEND HER TO ANYONE LOOKING TO BUY ORSELL!I LOVE THAT JENNIFER TOOK THE TIME WHEN I WASSTRUGGLING TO GET FINANCED AND WAS VERY CLOSE TO JUSTGIVING UP. SHE DIDN’T LET THAT HAPPEN. SHE FOUND ME ANEW FINANCE COMPANY THAT WORKED WITH ME ON MYSCHEDULE. I LOVE MY HOUSE AND IF I WAS TO SELL THIS IS THEPLACE I'D USE AGAIN.G. WALLACEA. MAYNARDQ. PHILLIPS

THANK YOU!WE WO U L D LOVE T O WORK W I T H YOU, P L E ASEREACH O UT IF Y O U HAVE A N Y QUESTIO N S .GREen key real EstateDirect: 517-398-2541 jenniferrodgers@greenkeysellsmi.comwww.greenkeysellsmi.com2900 Spring Arbor Rd, Jackson, MIJennifer Rodgers