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.
Jumbo, non-conforming mortgage loans are similar to conventional conforming loans except the loan amounts exceed the conforming loan limits above. Jumbo purchase and refinance mortgages can be obtained for primary residences, second or vacation homes, as well as investment properties. A jumbo loan will typically require a larger down payment than a standard, conventional mortgage and may have a higher interest rate. Underwriting is also more restrictive on Jumbo loans, with higher standards when it comes to debt-to-income (DTI) ratios, credit scores, and cash reserves. Jumbo loans can be fixed-rate or adjustable-rate loans. Jumbo loans are riskier than conventional, or government backed mortgages because they don’t have private mortgage insurance or a government guarantee in the case of a default.
We are a approved lender in the VA Home Loan Program. We help servicemembers, veterans, and their families become homeowners by utilizing their VA eligibility. VA provides a benefit to servicemembers and veterans who qualify that guarantees a portion of their loan against loss. Purchase money financing is available up to 100% Loan-To-Value (LTV), and even though LTV is greater than 80%, private mortgage insurance is not required. VA loans typically have lower interest rates and closing costs when compared to conventional loans. Like conventional loans, refinancing may provide the VA borrower an opportunity to take cash out from the equity of their home. VA also offers a Streamline Refinance Loan, also called an Interest Rate Reduction Refinance Loan or IRRRL. Refinancing with a VA IRRRL loan allows the borrower to refinance their existing VA loans to a lower interest rate, or refinance from a VA adjustable rate mortgage (ARM) into a fixed rate mortgage without a full credit underwrite; saving the borrower time and money.
We offer financing for vacation and second homes. Loans generally require a larger down payment, typically a minimum of 10% and often more than 20% and can carry either a fixed or adjustable interest rate that’s marginally higher than comparable loans for a primary residence.
We offer 1-4-unit residential loans to purchase or refinance investment property. Investment property loans generally require a minimum of 15% down payment and can carry either a fixed or adjustable interest rate marginally higher than comparable loans for a primary residence.
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.