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Trusted Lending Center offers a variety of loan programs to meet your needs. We work with the leading investors in the industry to provide Conventional Fixed Rate and Adjustable Rate Mortgages to accomplish your mortgage goals.
If you're not sure which mortgage loan option is right for you, call us at 855-440-4852 and we will be happy to assist in determining the best option for you.
A "fixed-rate" mortgage comes with an interest rate that won't change for the life of your home loan. A "conventional" (conforming) mortgage is a loan that conforms to established guidelines set annually by Fannie Mae and Freddie Mac's federal Regulator, The office of Federal Housing Enterprise Oversight (OFHEO), and is the limit on the size of a mortgage that Fannie Mae and Freddie Mac will purchase and/or guarantee. OFHEO uses the October to October percentage increase/decrease in the average house price in the monthly interest rate survey of the Federal Housing Finance Board (FHFB) to adjust the conforming loan limits for the subsequent year.
Mortgages which exceed the conforming loan limit are known as jumbo mortgages. The interest rate on jumbo mortgages can sometimes be higher than the interest rate on a conforming mortgage. A borrower whose mortgage amount slightly exceeds the conforming loan limit should analyze the economics of reducing their loan size through a larger down payment or possibly using a second mortgage financing option to qualify for a conforming mortgage versus a jumbo mortgage.
Monthly payments on a conventional fixed-rate mortgage remain the same for the life of the loan, making it an attractive option for borrowers who plan to stay in their home for several years. The alternative to the fixed-rate mortgage is the adjustable-rate mortgage (ARM), which features lower monthly payments during the first few years. While many prefer the security of a fixed-rate loan, an ARM may be a better option - especially if you know you'll be moving within the next several years.
Types of Fixed-Rate Mortgages
30-Year Fixed-Rate Mortgages
The 30-year conventional fixed-rate mortgage has long been popular due to its fixed interest rate and lower monthly payments, however, since the interest payments are spread out over 30 years, you'll pay more interest over the life of the loan than you would on a shorter-term mortgage.
15- and 20-Year Fixed-Rate Mortgages
With a shorter loan term and lower interest rate, a 15- or 20-year fixed-rate mortgage can help you pay off your home faster and build equity more quickly, although your monthly payments will be higher than with a 30-year loan. The 15- and 20-year fixed-rate mortgages are especially popular for refinancing.
Flex Term Fixed Rate Mortgages
Flex Terms are available for 8 to 29 years. This is an especially popular Refinancing option for borrowers who do not wish to start over on a new 30 Year term but want to take advantage of a lower interest rate without increasing their payment over a comfortable level on a shorter term mortgage.
Benefits and Considerations of a Fixed Rate Mortgage
No Interest Rate Surprises
With a fixed-rate mortgage, the interest rate won't change for the life of your loan, protecting you from the possibility of rising interest rates.
The Best Fixed Rates
Conventional mortgages typically offer a lower interest rate and APR than other types of fixed-rate loans.
Fewer Hoops to Jump Through
Conventional mortgages often require less documentation than FHA loans or VA loans, which could speed up the overall processing time.
Refinancing Options Available
Conventional fixed-rate mortgages are available for refinancing your existing mortgage using a standard 10, 15, 20 or 25-year options or a Flex Term somewhere in between.
Requirements and Qualifications
- Loan amount - Effective December 2018, Trusted Lending Center is honoring the new increased loan limits. That's an increase from $453,100 to $484,350 for regular conventional loans and from $679,650 to $726,525 for conventional high balance loans.
- Down Payment - Most conventional loans will require at least 3% to 5% percent (and optimally 20 percent or more) as a down payment.
- Credit history - Conventional loans are a good choice for borrowers with excellent credit, which generally means a FICO score of 680 or higher, ideally greater than 700. There are also established guidelines for income and other personal financial information.
Conventional fixed-rate mortgages are a popular option, but they're not the only one. Compare mortgage options to learn more on your own, or contact a mortgage loan originator to find out which mortgage option may be the best fit for you.
To get an idea of your possible monthly payment, please visit our Mortgage Calculator on our Loan Center Page.
If you’re looking to purchase a new home, lower your monthly mortgage payment or get some cash out of your home, an Adjustable Rate Mortgage (ARM) may be your best option. ARMs offer some of the lowest rates available — and today’s ARMs are a lot different than they were in the past.
Benefits of ARMs
ARMs are safer.
ARMs no longer feature pre-payment penalties, so you can easily refinance. And you’ll never have to worry about a big balloon payment.
ARMs are smarter.
Most people only stay in their mortgage for 5 to 7 years. Why not go for the lower rate? Plus, more of your payment goes toward the principal, so you pay down your mortgage faster.
ARMs can save you money.
A lower rate means a lower payment, which means more cash in your pocket each month.
There are several different types of ARMs, each with its own benefits. Let’s go over your options together.
- Non-Qualified Mortgages are mortgage loans that do not fall into the Qualified Mortgage Category
- Non Qualified Mortgages are not riskier loans but are loans that is often called out of the box and do not fit the qualified Mortgage lending guidelines and the complexity of the Qualified Mortgage guidelines.
- Mortgage rates and fees is slightly higher for Non QM mortgage lenders than QM Lenders due to the limited liquidity the lender has to sell their loans on the secondary market and due to the lack of protection that QM Loans offer.
- Non QM Loans cannot be sold to Fannie Mae and Freddie Mac and are normally sold to other secondary markets to private investors or held by the lender under their own portfolio.
A jumbo loan, also known as a jumbo mortgage, is a form of home financing for whose amount exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). As a result, unlike conventional mortgages, it is not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac. Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo mortgages come with unique underwriting requirements and tax implications.
Jumbo mortgages are gaining traction as the housing market continues to recover following the Great Recession.
How big is a Jumbo Mortgage?
At what price does a mortgage exceed conventional/conforming and cross over into jumbo? It varies by state and even county. The FHFA sets the conforming loan limit size for different areas on an annual basis, though it changes infrequently. In fact, the 2019 maximum limit for one-unit properties is $484,350 and the High Balance Nationwide Loan Limit is $726,525. Any Loan amount above $726,525 would be considered Jumbo.
Trusted Lending Center is pleased to offer "Fix & Flip" financing with industry leading rates. This product is short-term financing for real estate investors. Available for the following property types: non-owner occupied, single family residences, 2-4 family units, condominiums, townhomes, and multi-family properties up to 20 units. Borrower may be an individual, LLC, or corporation.
Line of Credit
Exposure line for experienced investors.
- Lines of credit for multiple transactions.
- Must have 1 completed flip in the past 2 years.
- Funding up to 90% of purchase price, 95% of rehab, and 75% loan to value (LTV).
- Loans from $50k to $3m.
- 12 month amortization, with optional 3 month extensions.
- 90 days minimum interest.
Subject to minimum credit score (620) and conditions.
Single property loans for novice or experienced investors
- Funding up to 85% of purchase price, 85% of rehab, and 70% loan to value (LTV).
- Loans from $50k to $1m.
- 12 month amortization, with optional 3 month extensions.
- 90 days minimum interest.
Subject to minimum credit score (620) and conditions
These are the most popular type of construction loan for consumers, but are now difficult to find in some areas. Also called “all-in-one loans” or “construction-to-permanent loans”, these wrap the construction loan and the mortgage on the completed project into a single loan. These loans are best when you have a clear handle on the design, costs, and schedule as the terms are not easy to modify.
The loan has one approval process, and one closing, simplifying the process and reducing the closing costs. Within this basic structure, there are several variations. Many charge a higher rate for the construction loan than the permanent financing. Typically, the borrower can choose from the portfolio of mortgages offered by the lender such as 30-year-fixed, or various ARM’s (adjustable rate mortgages). Some banks will let you lock in a fixed rate with a “float-down” option allowing you to get a lower rate if rates have fallen, for a fee of course. There may be penalties if the construction phase of the loan exceeds 12 months.
Paying a slightly higher rate on the construction phase of the loan is usually not significant, since the loan is short-term. For example, paying a extra 0.5 percent on a $200,000 construction loan over six months, would only add no more than $250 to your borrowing costs.
Construction loans are typically interest-only and you will pay only on the money that has been disbursed. So your loan payments grow as progress is made and more money is released. When the home is completed, the total amount borrowed during the construction loan automatically converts to a permanent mortgage. If you locked in a fixed mortgage rate at closing, but rates have since fallen, you can lower your mortgage rate by paying a fee – if your loan has a float-down option, a feature you will probably want on a fixed rate loan. If you had chosen a variable rate, pegged to the prime or another benchmark, then you will have to pay the current rate at the time the mortgage converts.
An FHA mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for borrowers who are unable to make a large down payment. FHA loans allow the borrower to borrow up to 96.5% of the value of the home. The 3.5% down payment requirement can come from a gift or a grant, which makes FHA loans popular with first-time buyers.
Term: 30 years Maximum Amount: Determined Annually by Property Address
The Federal Housing Administration guarantees their FHA program in lieu of private mortgage insurance (PMI) so qualified borrowers can get a mortgage loan with a low down payment. The FHA doesn't lend the money for the mortgage loan they guarantee the loan. The U.S. Department of Housing and Urban Development Web site can help you find HUD-approved counselors in your area who can answer your questions about FHA loans, specific to your situation. The most popular FHA loan has a minimum cash investment requirement of 3 percent but permits 100 percent of the money needed at closing to be a gift from a relative, nonprofit organization or government agency. The biggest disadvantage to FHA loans is the mortgage insurance premium. In most 15- or 30-year FHA loans, the borrower pays 1.5 percent of the loan amount at closing, along with a 0.5 percent annual renewal premium paid annually over the life of the loan. Unlike private mortgage insurance (PMI), the mortgage insurance premium isn't canceled when the homeowner's equity reaches a target level. You may qualify for a partial refund of the upfront mortgage insurance premium if you owned your home for less than five to seven years. It's five years for loans closed after Jan. 1, 2001 and seven years for loans closed before Jan. 1, 2001 and after September 1983.
The United States Veterans Administration helps service members, veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. VA Home Loans are provided by private lenders, such as banks and mortgage companies.
Term: 30 years Maximum Amount: Determined Annually
Purchase and Cash-Out Refinance Home Loans With a Purchase Loan, VA can help you purchase a home at a competitive interest rate, and if you have found it difficult to find other financing. VA's Cash-Out Refinance Loan is for homeowners who want to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements. The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan. VA will guaranty loans up to 100% of the value of your home. The guarantee VA provides to lenders allows them to provide you with more favorable terms, including: No down payment as long as the sales price doesn't exceed the appraised value. No private mortgage insurance premium requirement. VA rules limit the amount you can be charged for closing costs. Closing costs may be paid by the seller. The lender can't charge you a penalty fee if you pay the loan off early.VA may be able to provide you some assistance if you run into difficulty making payments. You should also know that: You don't have to be a first-time homebuyer. You can reuse the benefit. VA-backed loans are assumable, as long as the person assuming the loan qualifies.
The mission of the United States Department of Agriculture (USDA) Rural Development’s Single Family Housing Guaranteed Loan Program is to assist low to moderate income rural homebuyers achieve their dream of homeownership! Rural Development partners with approved local lenders to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms. Applicants must purchase a home within the eligible rural areas, and have a household income that does not exceed the established limits where the home is located.
Term: 30 years
Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $1,690. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $2,400. Your actual APR may be different depending upon these factors.