Why should I use Sterling Mortgage instead of someone else?
Sterling offers homebuyers and homeowners with more options and a wider selection of loan products than most lenders, including banks. In fact, Sterling can help homebuyers and homeowners save money by offering fast, knowledgeable service with competitive rates that can get you where you want to be quickly, and with less paperwork.

MORTGAGE PROGRAMS AVAILABLE AT STERLING MORTGAGE

The following is a short description of the types of mortgage loans that are available from Sterling Mortgage. These loans are available for the purchase of homes or the refinancing of existing mortgage loans. They can be used for primary residences, second homes, and residential investment property of 1 to 4 units.

Conventional [top]

Sterling offers Conventional mortgage loans that can finance the entire purchase price of your home, and then some! We use an automated underwriting system made available to us by Fannie Mae™ and Freddie Mac™ that can get you an answer on your mortgage application in minutes, not days, and can get you in your new home quicker with less paperwork and shorter processing times. These loans are available to homebuyers whether you have a 20% down payment, or no down payment! Borrowers who have less than 20% down may pay Private Mortgage Insurance (PMI) or we can often arrange a second loan to pay the required down payment. There are many repayment options with terms that can be customized to meet your financial goals and needs. Qualifications are generally based upon credit score, household income, and equity (the amount of money you have available for a down payment). There are many conventional loans available to first-time homebuyers.

FHA Loans[top]
The United States Department of Housing and Urban Development (HUD) division of the Federal Housing Administration insures FHA mortgages and allows greater access to owning a home by offering easier credit and income guidelines to potential borrowers. There are some geographical restrictions placed on the amounts available to lend.

VETERANS ADMINISTRATION (VA) LOANS [top]
The Veteran's Administration guarantees mortgages for qualified Veterans depending upon each individual veteran's entitlement amount. VA mortgages do not require PMI (mortgage insurance), but require a non-refundable Funding Fee to be paid by the veteran, but can be financed in the loan amount. Borrowers should have fairly good credit to qualify and the qualifying ratios can be more liberal than FHA mortgages.

Jumbo Loans [top]
Non-conforming jumbo loans are those that don't conform to the underwriting guidelines set by Fannie Mae™ and Freddie Mac™, or are over the maximum annual loan limits set by those agencies. The lender may require Private Mortgage Insurance for loan amount s exceeding 80% of the purchase price of the home. Qualifications are based upon credit score, household income, and equity. The loan amounts for Jumbo Loans can exceed several million dollars. Due to the larger loan amounts and inherent risk involved theses loans typically require more stringent underwriting guidelines and the Loan to Value ratios and Debt to Income ratios are reduced.

Sub-Prime Loans [top]
These mortgage loans are available for borrowers or loan types that do not meet the qualifications of the conventional or government loans. They encompass a wide range of terms and conditions, including no down payment, credit issues, and income issues. As the risk to the lender increases the interest rate and other fees charged may increase. These loans are designed to be an alternative for some borrowers that allow them to have access to mortgage financing when other avenues are unavailable. They may be viewed by some borrowers as temporary financing available to meet their current needs until their financial profile improves.

CONSTRUCTION LOANS [top]
Sterling Mortgage offers construction loans that allow you to finance the construction of your new home or to make major home improvements on your existing home. We can finance up to 95% of the construction cost plus the purchase of your building lot. If you already own your building lot you can use the equity in that lot as your down payment on the construction loan. The construction-permanent loan allows you to close once to cover the construction loan and the permanent mortgage.

TERMS AND FEATURES OF LOAN PROGRAMS AVAILABLE [top]
All our loan programs are available with a wide variety of terms and features that can be customized to your individual needs.

Fixed Rate Mortgage - A fixed rate loan features an interest rate that will remain the same for the entire term of the loan, or until you pay the loan in full. This means that the principal and interest payment of your mortgage will never change throughout the term of your loan. However, your overall monthly payment could change if you are escrowing your real estate taxes and homeowners' insurance and they increase or decrease. The terms of a Fixed rate mortgage may be for 10, 15, 20, 30, or even 40 years.

Adjustable Rate Mortgage - An adjustable rate mortgage has an interest rate that may change throughout the term of the loan. The rate could increase or decrease depending on economic conditions that influence interest rate markets. This also means that the monthly principal and interest payment will also change. The adjustable rate mortgage has an index, which is the referenced security (such as the Wall Street Journal Prime Rate, 1 year U.S. Treasury Bond, etc.) of which the interest rate is based upon, and a margin, which is added to the index rate and determines what the actual interest rate will be. The rate could be adjusted every year, or every 6 months, depending on the type of mortgage you choose. Adjustable rate mortgages also have caps which limits how much an interest rate may change for any adjustment period as well as over the life of the loan. Some adjustable rate mortgages have a feature in which the interest rate is fixed for the first few years of the mortgage (3 years, 5 years, 7 years, 10 years) and then converts to an adjustable rate mortgage. This allows you to obtain an interest rate that is usually lower than a fixed rate mortgage for the first several years of your mortgage. Most adjustable rate mortgages are amortized over a 30 year period.

For a copy of the Federal Reserve Board’s Consumer Handbook on Adjustable Rate Mortgages Mortgages you may contact one of our offices or obtain it online at: http://www.federalreserve.gov/pubs/arms/arms_english.htm

Interest Only Mortgages - With an Interest Only Mortgage you are only required to pay the monthly accrued interest on your mortgage balance. This is a way to keep your monthly payment lower than other fully amortizing mortgages but it also means that the balance of your mortgage does not decrease. Most Interest Only Mortgages allow you to make a principal payment of your mortgage balance at any time. The monthly payment of your mortgage would change from month to month. You also have the option of choosing a fixed interest rate or an adjustable interest rate with an Interest Only Mortgage. The interest only period usually ends after 10 years, at which time you will be required to pay principal as well as interest on your mortgage.

Refinance [top]

Refinancing is taking out another mortgage and paying off your existing mortgage so you can take advantage of lower rates or different terms.

Home equity loans [top]

A home equity loan is a mortgage that allows you to borrow from the equity you have earned in your home. An equity loan may be in the form of a line of credit with an adjustable interest rate, often referred to as a HELOC (Home Equity Line of Credit) or a loan for a determined amount at a fixed rate and term. Some HELOC's have an interest only feature in which you are required to only pay the accrued monthly interest of the balance of the loan. Both types of home equity loans are a second mortgage loan behind your current first mortgage loan and therefore do not change the terms of your first mortgage loan. They can be obtained for up to 100% of the current value of your home. Due to an increased risk, home equity loans have an interest rate that is normally higher than first mortgages.

Reverse mortgages [top]

A reverse mortgage is a loan that enables homeowners 62 and older to convert part of the equity in their homes into tax-free income without having to sell the home, give up title or take on a new monthly mortgage payment. The borrower must reside in the home and does not need to own the home free and clear to qualify. The amount the homeowner can borrow depends on the borrower’s age, the value of the home, amount of equity and prevailing interest rates.

A reverse mortgage borrower retains ownership until s/he sells the home or passes it on to heirs. At that time, the loan must be paid. The total amount due covers the equity borrowed, accrued interest and mortgage insurance premiums, servicing fees and any other costs financed as part of the loan. This will never exceed the current value of the property.