Mortgage Programs

Each Mortgage program offer an array of financing options to include Fixed and Adjustable rate options, Balloon, as well as Interest Only financing.  Check with your Charter Mortgage loan officer to discuss the best program and terms to fit your financial needs.

Conventional – ( Fannie Mae / Freddie Mac) Conventional mortgages generally require a 5% down payment.  This means, if you qualify, you can finance up to 95% of the purchase price or the appraised value of the home, whichever is less.  Conventional loans are required to be insured by a Private Mortgage Insurer if the down payment is less than 20% of the purchase price or the appraised value, whichever is less.  Private Mortgage Insurance insures the Lender against losses that it may incur if you default on your mortgage loan.

Jumbos – A loan above $417,000. These limits are set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.  Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

FHA – mortgages are insured by the Federal Housing Administration and require less of a down payment than conventional mortgage.  Generally, the required down payment is 3.5% of the purchase price.  FHA also permits the financing of a portion of your closing costs.  FHA also requires a mortgage insurance premium (MIP).

VA – are guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase, rate & term refinance or cash out refinance of a primary residence.  A VA mortgage can be used to buy a home, build or even improve a home with energy-saving features such as solar or heating & cooling systems, water heaters, insulation, weather–stripping & caulking, storm windows & doors or other energy efficient improvements approved by VA.

Benefits of VA loans include:

  • Common sense underwriting guidelines with respect to credit, debt to income ratios.
  • No down Payment Required Competitive mortgage rates
  • No monthly mortgage insurance premium
  • Manufactured Home Programs

USDA / Rural Development – are offered in rural areas as determined by the United States Department of Agriculture (USDA).  The USDAs mission is to help lower income households obtain home loans at reasonable mortgage rates.  USDA home loans offer many advantages to qualified borrowers.

USDA mortgage loans allow for purchase and no cash out refinances of primary residences Check with a Charter Mortgage representative to discuss USDA programs and territories.

Some benefits of USDA are:

  • 100% financing
  • No monthly mortgage insurance
  • No asset or automatic reserve requirements
  • Required property improvements can be financed into the loan up to 102% of the "improved" value. (USDA will allow repairs to be completed after closing!)

Eligible USDA property types include single family homes, condominiums and manufactured housing*.  USDA does have some income and property eligibility requirements.