Loan Programs
Our Loan Programs
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Conventional Loans
- A Conventional Mortgage is used to purchase or renovate a home or refinance an existing property.
- Most conventional mortgages are called “conforming” mortgages as they usually fit the guidelines issued by Fannie Mae and/or Freddie Mac (also called Government Sponsored Agencies or GSE’s) that ultimately sell the mortgages to investors.
- Typically requires PMI (Private Mortgage Insurance) when a buyer is not able to put at least 20% down.
- Guidelines are less stringent regarding property condition, and gift funds may also be used to offset down payment.
- Individuals with a credit score of 620 or higher, and with income and assets that can be verified.
- Usually, buyer must have enough in reserves (money in savings accounts and/or investments) to cover down payment and closing costs.*
- Traditionally, conventional loans have some of the lowest interest rates if qualifications fit the guidelines.*
Types of Conventional Loans
HomeStyle
What is it?
- Long-term renovation loan used to purchase, refinance or renovate a property.
- Backed by Fannie Mae and available to owner-occupied homeowners, as well as for second homes and single-family investment properties.
- For buyers unable to put 20% down, mortgage insurance premiums discontinue when the mortgage balance is 78% of the property value.
Who can it help?
- If you are looking to purchase or refinance a property that needs renovation, and you have qualifications that meet conventional lending guidelines, a HomeStyle loan may be perfect for you.
HomePossible
What is it?
- Specialized mortgage product offered by Freddie Mac created for low to moderate-income families.
- Buyers are required to invest as little as 3% down on a home purchase.
- Also allows for as little as 5% down when purchasing a 3-4 family property that you intend to occupy.
- Gift funds are allowed to cover 3% of the down payment.
Who can it help?
- One of the defining factors of HomePossible mortgages is that there are income limits when going through the qualification process.
- HomePossible is a great alternative to FHA, and ideal if you intend on living in a multi-family home that generates income.
- If you are a “Do it yourself” kind of person, and you are concerned about having enough money down to afford a new home, this program could be perfect for you and your family.
HomeReady
What is it?
- The HomeReady mortgage is a conventional mortgage product offered by Fannie Mae to help low to moderate income buyers purchase or refinance a home.
- The advantages of this mortgage product include lower down payment and credit requirements, as well as decreased mortgage insurance rates.
- Specifically, HomeReady allows for family and friends to act as a co-signer for qualification should the primary borrower(s) be unable to qualify on their own.
- You do not have to be a first time home buyer to qualify for a HomeReady loan. Income from boarders and accessory units (in-law apartments) is allowed for qualification.
Who can it help?
- One of the defining factors of HomeReady mortgages is that there are income limits when going through the qualification process.
- If you are looking to buy a home with lower income and credit qualifications, or you have a family member or friend willing to help you qualify for financing, then HomeReady could help!
- Also a great alternative to an FHA loan.
FHA Loan
- FHA Loans offer government-backed mortgages used to purchase, renovate, or refinance a home that is insured by the Federal Housing Administration.
- Has competitive interest rates and require at least 3.5% down for purchasing a home.
- An outstanding alternative to conventional lending, however, the home being refinanced or purchased must comply to FHA requirements.
- Could be perfect for individuals with less than perfect credit, as well as limited funds saved or invested for a sizable down payment.
- Works well for first time home buyers and individuals/families with moderate or limited income.
- In some cases, you can take advantage of down payment assistance programs if you do not have enough savings or if you can not acquire gift funds from a family member.
FHA 203k
- A mortgage product guaranteed and insured by the Federal Housing Administration that allows you to purchase/refinance a home that needs improvement with a single mortgage.
- Requirements of an FHA 203k mimic the same qualifications for a traditional FHA mortgage.
- Great for those looking for a “fixer-upper”, or to improve your current home.
- Ideal if your qualifications do not fit conventional lending requirements.
RI Housing
- Rhode Island Housing provides Rhode Island residents with education and down payment assistance programs for first time home buyers along with home improvement loan options for current homeowners.
- Advantages include 100% financing, down payment assistance programs, and options to help pay for closing costs as well as other expenses.
- When funds are available, qualifying homebuyers can take advantage of grant money and apply for tax credits.
- Contains conventional lending options that offer lower mortgage insurance rates.
- Individuals looking to purchase or refinance a home in the state of Rhode Island.
- Those who haven’t owned real estate property in RI for the last three years.
USDA Loans
- A USDA Loan offers mortgage products with special terms for homes purchased in designated rural and suburban areas.
- Zero down payment with accessibility to competitive interest rates and low monthly payments.
- One of the defining factors of USDA mortgages is that there are income limits when going through the qualification process (*income limits vary by location*).
- Those who intend on inhabiting a property in a USDA location.
VA Loans
- A VA Loan is a mortgage guaranteed by the Department of Veteran Affairs that approved private lenders like Province Mortgage Associates can offer to their clients for refinancing and purchase transactions.
- The largest advantage for eligible veterans, service men and women and their spouses, is that there is no mortgage insurance required which lowers the overall monthly payment.
- Other benefits include 100% financing with no down payment, no prepayment penalties, and low to no funding fees.
- Veterans of The United States Military, either retired or currently serving our country.
- Spouses of a US Veteran (check eligibility)
Jumbo Loans
- A Jumbo Loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac.
- In 2019, any mortgage written over the amount of $484,350 would qualify as jumbo.
- Individuals looking to purchase a higher-priced luxury home.
- Additionally, those with low debt-to-income ratios with higher credit scores.
- As a result, you can improve your monthly payment by putting enough money down to put your mortgage below the conforming loan limit.*