Need financing information on Uptown Charlotte condos and penthouses? Here are the different types of NC loans for Charlotte property buyers:
CONVENTIONAL
A mortgage loan that is not insured or guaranteed by the federal government. The maximum mortgage amount for a conventional conforming loan is $417,000.
ARM 3/1, 5/1, 7/1, 10/1:
A mortgage with an interest rate and payment that changes periodically over the life of the loan based on the change in a specific index. Adjustable rate mortgages may have features that allow for the interest rate and payments to be fixed for an initial period (3 years, 5 years, 7 years, 10 years) and thereafter adjusting periodically based on the specific index.
JUMBO
A conventional mortgage with a loan amount greater than $417,000. Jumbo loans typically require a higher interest rate than loans less than $417,000.
USDA
This loan type provides 100% financing with no mortgage insurance. The home and the borrower’s income must meet program guidelines.
NC BOND
The North Carolina Housing Finance Agency helps make home ownership affordable for first-time buyers by offering 30-year, fixed-rate FHA, VA, and conventional mortgages at interest rates that are below market rates to first-time home buyers.
INTEREST ONLY
A conventional mortgage whose required monthly payment is interest only, calculated at the note rate on the outstanding principal balance. Interest only payments are allowed during the initial term of the mortgage for a period of three to ten years, with principal lump sum reductions allowed any time. Upon completion of the initial term, the principal balance is amortized (principal and interest payments) over the remaining term of the loan.
CONSTRUCTION TO PERMANENT
A mortgage loan which provides funds for the construction or renovation of a residential property. During the construction/renovation phase, funds are disbursed based on completion of the construction. The construction phase may be up to twelve months in duration and has interest only payments on the outstanding balance. Upon completion, the mortgage is modified to a fixed rate or adjustable rate mortgage. This product requires only one closing and eliminates the cost of duplicate closings.
VA MORTGAGE
A loan guaranteed by the Veterans Administration. This loan is available to qualifying veterans of the armed forces and provides for 100% financing. The maximum 100% loan is currently $417,000.
FHA MORTGAGE
A loan insured by the Federal Housing Administration. This product typically requires a 3.5% down payment and the Federal Housing Administration sets maximum mortgage limits by state and county.
Provided by Brick McDermott with NC Bank & Trust Mortgage
Brick.McDermott@ncbtonline.com Phone: 704.651.3827
