Residential Mortgage Division

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We offer a variety of mortgage loan types through the secondary market for homeowners and individual investors for residential 1-4-unit properties.  Secondary market loans may carry a fixed or adjustable interest rates (where the interest rate remains fixed for a period, then changes after the fixed period ends), with amortization periods from 15 to 30 years depending on the loan program. With a wide range of conforming and non-conforming loan products, LCD Mortgage a division of First Home Bank offers a financing solution for nearly every qualified homeowner.

Conventional conforming mortgage loans up to $647,200 ($726,200 for 2023) are offered to homeowners to purchase or refinance a home.  In certain high-cost counties in the United States, conforming loan amounts may be as high as $970,800 ($1,089,300 for 2023).  Typically, conventional loans up to 80% loan to value (LTV) carry the lowest rate of interest.  Loans may be offered over 80% LTV with private mortgage insurance (PMI).  Conventional loans may be amortized from 15 to 30 years.  Shorter amortization periods carry lower interest rates but require greater monthly payments.  Refinancing may provide the borrower an opportunity to lower their interest rate thereby lowering their monthly payment or take some cash out from the equity of their home to payoff other debts, make repairs to the home or for various other reasons.  Conventional loans are sold into the secondary mortgage market.  In some instances, First Home Bank retains the servicing of the loan.  The Bank outsources the servicing on loans it sells “servicing retained” to Cenlar, who services the loan on a “private label” basis, in other words, where the name of First Home Bank transparent to our customers, not Cenlar.

We are a approved Federal Housing Administration (FHA) lender.  FHA insures private lenders against the possibility of borrowers defaulting on mortgages that meet certain criteria, thereby expanding the availability of mortgage credit beyond what may otherwise be available.  We participate in the various loan programs offered by the FHA.  FHA loans offer as little as 3.50% down payment, and borrowers with credit challenges in the past may find it easier to qualify for FHA financing.  FHA loans are typically designated for low to moderate income borrowers and offer lower down payment requirements with more flexible underwriting guidelines.  FHA loan limits vary by county, with maximum loans limits that are typically less than conventional, conforming loans.  FHA loans carry mortgage insurance premium (MIP), a portion of which is paid upfront at closing and a portion that’s included in the monthly payment.  Refinancing may provide the FHA borrower an opportunity to take cash out from the equity in their home.  FHA also offers a Streamline Refinance that allows an existing FHA borrower to refinance their current loan to a lower interest rate without a full credit underwrite; saving the borrower time and money.

We offer loans to finance the construction of a borrower’s primary residence. A single close construction loan combines the construction loan and the permanent loan into one transaction.  During the construction period, the borrower typically pays interest on the portion of the loan that has been funded as the construction process progresses. Once construction is complete, the loan converts to a permanent mortgage which can be amortized up to 30 years.  Construction loans can carry either a fixed or adjustable interest rate and may require a higher down payment, with interest rates that are slightly higher than standard conforming rates.

We are a approved United Stated Department of Agriculture (USDA) Rural Development lender.  The USDA loan program assists lenders like us with providing low and moderate-income borrowers the opportunity to own a home as their primary residence in eligible rural areas.  USDA offers zero down payment loans to eligible applicants that may build, rehabilitate, improve or relocate a dwelling in an eligible rural area.  Borrowers must meet income eligibility requirements.  Like other government loans, the USDA program provides a loan guarantee to reduce the lender’s risk in the case of a loan defaulting.

The 203k loan is great for a person buying a Single-Family Residence and wants to roll renovations costs into the loan they are getting to purchase the home. The pre-qualification process is the same as any other loan. The client will have to meet with a HUD consultant at the property for the inspection and work write-up. The client then gets a contractor to bid the renovation and compare those figures with the HUD Consultant. The work write-up is then prepared by the HUD Consultant and the Appraisal is ordered and completed per the renovations being done. When the loan is funded the funds are held and dispersed as the work is completed and inspected. Once the work is complete the client has one FHA Loan and a newly renovated home.