Pinnacle Capital Mortgage is a direct lender with Fannie Mae, Freddie Mac and Ginnie Mae. That means we have access to loan programs that other lenders may not be able to offer due to their size. We offer many loans to help satisfy the needs of our diverse clients.
A conventional loan is a mortgage loan that is not insured by any government agency FHA, VA or USDA. Conventional loans often represent lower rates and great terms as long as the borrower can meet the loan requirements. They typically require a 5-10% down-payment, and may have private mortgage insurance if program minimum down-payment is not met.
FHA loans are typically more useful for people with lower down-payments and/or lower credit scores. These loans are insured by FHA and can have higher fees associated with them, including monthly mortgage insurance.
VA loans are made by the Veterans Administration for veterans of our armed forces. These loans come with special protections and benefits. VA loans do not require a down-payment in most cases, and there is no monthly mortgage insurance.
Jumbo loans are simply loans that are too large to be considered purchasable for Fannie Mae or Freddie Mac. They typically require 20% down-payment, although here are exceptions for as little as 5% down. The interest rates are usually about .25% – .50% higher than comparable non-jumbo loans.
A Reverse Mortgage, or Home Equity Conversion Mortgage (HECM), is a type of home loan for older homeowners (62 years or older) that offers no monthly mortgage payments. Borrowers are able to secure a line of credit against the equity in their existing home.
A USDA Home Loan is also known as the USDA Rural Development Guaranteed Housing Loan. This loan features no down-payment options for homes that are in rural areas, and is guaranteed by USDA.
Depending on the state and city in which you live, there may be down-payment assistance available to you in order to purchase a home. These are often in the form of grants offered by municipalities and have rules and guidelines that must be followed for the program. Contact a mortgage advisor on whether or not this program can work for you!