Loan Programs
Our Loan Programs
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Conventional Loans
Conventional loans are mortgage options not backed by a government agency. They are broken down into conforming loans, which have a maximum loan amount prescribed by the federal government, and non-conforming loans, which vary by lender.
Benefits include the option to avoid private mortgage insurance (PMI) by putting at least 20% down, as well as more flexible loan requirements.
If you feel you are a good candidate for a conventional loan, or if you would just like to learn more about them, we encourage you to reach out to one of our dedicated Mortgage Advisors.
While everyone’s situation is different, we take special care to guide you toward the right mortgage product to meet your needs!
- 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 are a terrific choice for lower downpayment or multi-family options.
Benefits include low down payments, lower total cash-to-close, streamlined and cash-out refinancing, and 203k rehab options.
If you feel you are a good candidate for an FHA loan, or if you would just like to learn more about them, we encourage you to reach out to one of our dedicated Mortgage Advisors.
While everyone’s situation is different, we take special care to guide you toward the right mortgage product to meet your needs!
- 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
The FHA 203k loan is a great option for properties needing minor renovation, repair, upgrades and/or improvements.
Benefits include the ability to purchase or refinance, and improve the home, all-in-one using the after-improved value.
If you feel you are a good candidate for an FHA 203k loan, or if you would just like to learn more about them, we encourage you to reach out to one of our dedicated Mortgage Advisors.
While everyone’s situation is different, we take special care to guide you toward the right mortgage product to meet your needs!
- 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 is a Rhode Island-based agency that offers loan-assistance programs and resources to first time home buyers in the area.
Benefits include 100% financing, down payment assistance, renovation loans, and no private mortgage insurance for eligible borrowers.
If you feel you are a good candidate for a Rhode Island Housing loan, or if you would just like to learn more about them, we encourage you to reach out to one of our dedicated Mortgage Advisors.
While everyone’s situation is different, we take special care to guide you toward the right mortgage product to meet your needs!
- 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
USDA loans are backed through the Rural Housing Division of the U.S. Department of Agriculture. They are available to millions of eligible primary home buyers with low to moderate incomes or scarce funds for down payments.
Benefits include zero down payment options and minimum cash to close. If you feel you are a good candidate for a USDA loan, or if you would just like to learn more about them, we encourage you to reach out to one of our dedicated Mortgage Advisors.
While everyone’s situation is different, we take special care to guide you toward the right mortgage product to meet your needs!
- 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
Veteran’s Administration or “VA” loans are available for active, non-active, and retired Army, Air Force, Marine, Navy, National Guard, and Coast Guard veterans who meet the established service requirements.
Benefits include 100% financing, zero down payment options, no private mortgage insurance, no pre-payment penalties, and reduced costs for disabled veterans.
If you feel you are a good candidate for a VA loan, or if you would just like to learn more about them, we encourage you to reach out to one of our dedicated Mortgage Advisors.
While everyone’s situation is different, we take special care to guide you toward the right mortgage product to meet your needs!
- 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.*