WHO WE HELP
Traditional homebuyers
A fixed-rate home loan is the best option for those with a large down payment and/or who have a previous home to sell. Interest rates can vary greatly depending on the financial climate, and a fixed-rate loan protects borrowers from sudden increases that could significantly impact monthly mortgage payments. The interest rate at the time the loan is taken out is locked in. These types of loans vary in terms and can be 15 years or 30 years long. Homebuyers typically choose the 30-year fixed-rate mortgage because it results in the lowest monthly payments.
Homebuyers looking for
short-term savings
Unlike fixed-rate mortgages that are locked in once the borrower takes out the loan, an adjustable-rate mortgage (ARM) has a variable interest rate that is fixed only for a stated period of time. After the fixed rate period ends, the interest rate applied on the outstanding loan balance resets over a set period of time, sometimes annually or even monthly. Homebuyers who wish to save money in the short term with a “teaser rate”, pay down the principal balance faster, or is a short-term borrower who knows they will sell the home within a few years, typically choose this type of mortgage.
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Rates are capped on ARMs, which means that there are limits on the highest possible rate a borrower must pay. A borrower’s credit score is also very important in determining how much you will pay. The better your score, the lower your rate.
First-time homebuyers
A Federal Housing Administration (FHA) loan is a home mortgage that is insured by the government, issued by a bank or other approved lender, with the purpose of reducing the risk of loss if a borrower defaults on payments. For a borrower, these loans may require a lower minimum credit score and a much lower down payment than conventional mortgages. FHA loans are designed to help low-to moderate-income families attain homeownership, and are also popular with first-time homebuyers who may not have a large down payment saved up.
Active military, veterans,
and their families
With Veterans Administration loans, veterans, service members, and their surviving spouses can purchase homes with little to no down payment. VA Home Loans are provided by private lenders, such as banks and mortgage companies. The VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. Eligibility requirements for these loans can be a bit confusing, so a mortgage broker can be invaluable when considering this type of loan.
Real Estate Investors
Primary residences and investment properties can have similar types of mortgages, but different eligibility requirements. Investment properties fall under two categories: flippers looking for a quick renovation and sale, and rental properties for long-term income. Since lenders are stricter with the terms of these types of loans, it is often more difficult to qualify. It's important to review factors such as your credit score, the length of the loan, and the location of the property before applying for a loan.
Borrowers with home equity
Home equity loans and home equity lines of credit (HELOCs) are loans that are secured by a borrower’s home. A borrower can take out an equity loan or credit line if they have equity in their home. If a borrower has paid down their mortgage loan to the point that the value of the home exceeds the outstanding loan balance, the homeowner can borrow a percentage of that difference or equity, generally up to 85% of a borrower’s equity. Because both home equity loans and HELOCs use your home as collateral, they usually have much better interest terms than personal loans, credit cards, and other unsecured debt.
The mortgage professionals at Rock Hill Financial have over 20 years of experience working with residents in the greater Philadelphia area. Â We work with borrowers to ensure that they get a loan that fits their specific needs and budget. Whether you are purchasing your first home, refinancing an outstanding loan, or consolidating debt, our seasoned team of loan brokers will help you find the right loan program with the best terms. Give us a call at (610) 668-0168 to find out how we can help you achieve your home-buying goals!
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Rock Hill Financial, LLC is Licensed by the PA Department of Banking (NMLS#101844)
We are an EQUAL HOUSING LENDER
