Which loan is right for you?

Capital Mortgage Finance Corp. is approved to do business with over 90 lenders nationwide. Thus, CMFC has literally dozens of mortgage loan programs to offer. Contact your Capital Mortgage Finance Corp. loan officer today for more information on any of the loan programs listed or for a free rate quote. (The following information is deemed reliable, however, it is subject to change without notice.)

Loan Types

FHA Loans

The Federal Housing Administration was established to encourage home ownership throughout the country with the belief that home ownership increases the stability of a community. Prior to the creation of the FHA, large down payments were required to secure a mortgage loan. At present, a minimum of 3% investment is required by the borrower for the purchase of a home. As an incentive to investors who purchase loans, FHA insures the loan against default, should the borrower fail to repay. FHA guidelines also allow for greater flexibility with regards to credit history and qualifying ratios. The maximum FHA loan amount varies, depending upon where the property is located. FHA charges an upfront Mortgage Insurance Premium (MIP), that is financed, to insure your loan.

FHA Fixed Rate - Available in 15 or 30 year terms.

FHA A.R.M. - Adjustable Rate Mortgage. Offers a lower initial rate that is subject to change annually. Rate can adjust 1% per year, with a cap of 5%. Adjustment is based on the current index at the time of the adjustment period. The index is then added to the margin, typically 2.75. For example: the initial rate is 5%; after year one, the index is 6.25. The index plus the margin would total 9.00. But since there is a 1% annual adjustment cap, the rate is adjusted to only 6%. Applicant must qualify at 2nd year rate.

FHA Buydown - The interest rate is "bought down", usually by 2%. Offers the lower initial payment of an A.R.M., but the guaranteed cap of the end rate. Applicant qualifies at start rate. The rate will adjust 1% per year, for two years.

FHA 203k - This is an excellent program for the purchase or refinance of a home which is in need of repair. Repairs could be as simple as new windows or as extensive as a rebuild from the foundation on up. The extent of the repairs/improvements is limited to the maximum loan amount available.

FHA Streamline Refinance - A simple way to lower the current interest rate, or convert from an A.R.M. to a fixed rate. The only cost is typically the appraisal fee ($ 400.00 approx.). Only the mortgage history is verified; a 12 month history is required. Upon refinancing, the borrower will skip one month's payment and may receive an escrow refund (for taxes and insurance).

FHA Cash-out Refinance - An excellent, cost effective way to pay-off debt or improve your home. The interest one pays on credit cards and other types of non-realty loans is not tax deductible. Mortgage interest, however, is tax deductible. Also the mortgage rate is far less than the rates of credit cards and personal loans. And the repayment term is for a longer period, which greatly reduces the monthly payment.

VA Loans

The Veterans Administration guarantees mortgages for veterans of armed services. A down payment is not required for the purchase of a home, and the seller can pay for all of the veteran's closing costs. VA guidelines allow for greater credit flexibility and qualifying ratios. The maximum loan amount for VA loans is $ 417,000.00 (including VA Funding Fee)(with no downpayment and the veteran has full eligibility). VA charges a guarantee (funding) fee, that is financed, to guarantee the loan for investors purchasing the loan in the event that the buyer fails to repay the mortgage.

VA Fixed Rate - Available in 15 or 30 year terms; maximum loan amount is $ 417,000.00.

VA Jumbo - This program allows veterans to obtain a loan higher than the VA loan limit. However, VA Jumbo loans require a down payment reflective of the loan amount above the threshold. Please contact your Capital Mortgage Finance Corp. representative to check for availability.

VA Streamline - A simple way for a veteran to lower their mortgage interest rate. An appraisal is not required, however, an acceptable 12 month mortgage history is required. Proof of income is not required.

VA Cash-out Refinance - Veterans can consolidate debt and make home improvements; the mortgage interest is tax deductible and the interest rate is much lower in comparison to credit cards and personal loans.

Conventional Loans

Conventional loan programs are those without insurance or guarantee by a federal agency. If a borrower is putting less than 20% down, private mortgage insurance (PMI) is required. The rate for PMI will vary depending upon the Loan-to-Value (LTV), Loan Type, and the Term of the Loan. Conventional loan programs have credit guidelines and qualifying ratios that are not as flexible as FHA or VA loans. The maximum loan amount for a conventional loan is $ 417,000.00.

Conventional Fixed - Available in 15, 20, 25 and 30 Year Terms. For purchase transactions, a minimum of 3% is required, and sellers may contribute up to 6%.

Conventional A.R.M. - Available with 1 Year, 3/1, 5/1, and 7/1 adjustment terms. A 1 Year A.R.M. has 2% annual adjustment cap with a 6% lifetime adjustment cap (i.e. Start rate 5%, max adjustment to 11%).

Conventional Balloon - Typically a 7/23 term; after a 7 year repayment term, the balance of the mortgage is due.

Conventional Rehab - Similar to the FHA 203k loan, however, there are fewer improvement restrictions.

Conventional Streamline Refinance - An appraisal is required.

Jumbo Loans

Jumbo Fixed - Available in 15 or 30 Year Terms. Loan amounts from $ 417,001.00 to $ 1,000,000.00+.

2nd Mortgage/Home Equity Loans

Borrowers who wish to capitalize on the equity of their property will use an equity loan to pay-off debt, improve their home, or pay for college tuition.

Whatever your situation, we have a loan just for you. If it's a loan to buy a home, lower your monthly payments, pay bills or improve your credit -- we've got it! Let us show you. CALL NOW.

Construction-Perm Loans
Borrowers who desire to have a home custom built on a lot they have purchased will need a Construction-Perm Loan. This will provide the builder with a series of draws until the construction is finished. Loan repayment during construction is typically interest only. Upon completion, the loan converts to a permanent mortgage with a full PITI payment. Our construction loan experts can help you build your dream home. "All in One" construction and permanent loans to 100% of costs; no income qualifiers; investment properties up to 80% of value. Current eligible states are AZ, AK, AR, CA, CO, DC, FL, IA, KY, MD, MN, MS, MO, NE, NM, NC, OK, PA, SC, TX

107% Loan
This unique program consists of ONE loan, not a first and second piggy back. There is NO down payment. Not only can you finance 100% of the purchase price, but you can finance up to 7% of the closing costs! You can even have the seller contribute another 3% towards costs for a total of 6%. The maximum loan amount is $300,700. Call for pricing. A credit score of 700+ is required and normal qualifying guidelines apply. Scores below 700 are eligible for 103%.

5% down "NO DOC / NO PMI"
Easier than a standard loan. You need a 620 credit score but approvals are a snap. What do we mean by that? No questions asked, not about your job or your down payment. What could be easier?

95% Non owner occupied
A 5% down payment is all that is required to get that rental property. This includes 4 unit properties.

Loan Programs - Advantage and Disadvantages

Loan Programs	Advantages	Disadvantages
Adjustable Rate Mortgage (ARM) 6 month ARM 12 month ARM	Six and twelve month ARMs can significantly lower a mortgage payment for six or twelve months. That can be enough time to catch up on other debt payments and improve your credit rating.	Six and twelve month ARMs can become expensive after the initial six or twelve month introductory period. Chances are, you'll want to improve your credit and obtain a better loan.
Fixed Rate Mortgages 2 year fixed 3 year fixed	Two and three year fixed rate mortgages provide the security of a fixed loan payment and relatively low, fixed interest rate for the first two or three years. For most people trying to improve their credit, two to three years is plenty of time. After two or three years, these loans convert to ARM loans.	Two and three year fixed rate mortgages convert to ARM loans at the end of the fixed rate period. Rates on ARMs can increase. Chances are, you'll want to improve your credit and obtain a different loan before the two or three years are up.
Fixed Rate Mortgages 15 year fixed 30 year fixed	Fixed monthly payment and rate protect against interest and monthly payment increases	Higher interest rate compared to ARM introductory rates Higher rate compared to two and three year, fixed rate loans Fifteen and thirty year loans should generally be obtained if you plan not to move or refinance in the foreseeable future. If you're trying to improve your credit in anticipation of refinancing for a lower-rate loan, consider avoiding these loans.
Private Investor Loans (Hard money)	Fast close Less "red tape" Easy qualification guidelines	Higher interest rate Higher loan fee

Loan Programs	Advantages	Disadvantages
Adjustable Rate Mortgages 10/1 ARM 7/1 ARM 3/1 ARM 1 year ARM 6 month ARM 2/28: 2 yr. fixed rate; 28 yr. ARM 1 month ARM	Lower initial monthly payment Lower payment over a shorter period of time Rates and payments may go down if rates improve. May qualify for higher loan amounts	More risk Payments may change over time Potential for high payments if rates go up
Balloon Mortgages 15 year (30 yr. fixed, due in 15) 7 year 5 year	Lower initial monthly payment Lower payment over a shorter period of time Many balloon mortgages offer the option to convert to a new loan after the initial term	Risk of rates being higher at the end of the initial fixed period Risk of foreclosure if you cannot make the balloon payment, refinance or exercise the conversion option
No or Stated Income/Asset Programs	No tax returns or W-2s No proof of assets or down payment No verification of income Fast approval	Higher rates Higher down payment
No point, No fee Programs	No closing costs Less money required to close	Higher rates Higher payments
Home Equity Line of Credit	You only borrow what you need Pay interest only on what you borrow Access to funds as needed Interest may be tax deductible Up to 125% loan-to-value	Rates can change. The maximum interest rate is normally high Payments can change Harder to refinance your first mortgage
Home Equity Fixed Loan	Fixed payments Receive one lump sum at closing Interest may be tax deductible	Higher interest rates compared to 1st mortgages Harder to refinance your first mortgage