Loans
Don’t worry, Be Happy
Like the song says, don’t worry. We will make you happy. Once we see your loan application and financial picture, my team and I will share with you all of the loans you qualify for to purchase a home or refinance your current loan.
The key here is we will make the comparison and lead you to the correct decision. For 25+ years, this has been a trademark of my business
Conventional Loan
Why a Conventional Loan?
- Nearly 70% of a mortgages are Conventional Loans.
- A borrower can get a loan up to $647,200 for the purchase of their single-family residence.
- Conventional Loans are also used for the purchase a second home or an investment property
- And at First State Bank Mortgage, we use automated underwriting to give you the most flexibility for loan approval!
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What are the benefits of a Conventional Loan?
- Contrary to popular beliefs, you do not need to put 20% down to purchase a home.
- Down payments can be as little as 5% down.
- First-time homebuyers can also put down as little as 3%, but restrictions apply.
- Gift's can be accepted for a down payment of as little as 5% of the sales price.
However, there are some specific documentation when getting a gift, so let's talk.
- And if a homebuyer puts down less than 20%, there will be a Private Mortgage Insurance. (PMI)
- Where can I help you is with the decision to find the best best option for you at this point in your home purchase decisions. Did you know that my bank and offers at least five different options for PMI, and we can show you significant savings in your payment and over the total cost of your loan!
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FHA Loan
Easy and Convienent
What are the Primary Benefits of an FHA Loan?
- FHA loans only require a 3.5% down payment
- FHA Loans will allow for a lower credit score. I offer flexible underwriting on these programs
- FHA Loans will allow for a Grant for the down payment. The terms of each Grant Program varies, and there are some restrictions with each grant.
- Anyone who qualifies can obtain an FHA loan
- FHA loans are the most lenient after a short sale, foreclosure, or bankruptcy.
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What is the down payment for an FHA loan?
- Most FHA borrowers seek the low down payment requirements of FHA mortgage loans. With as little as 3.5% down, and with greater flexibility in FHA loan guidelines - FHA loans are incredibly popular for residential home financing
- This is a GREAT loan for the first-time homebuyer.
- You do not need to be a first-time homebuyer to get an FHA loan
- Loan limits for FHA loans vary not only by state but by county.
- Did you know you can purchase a multi-unit property with only 3.5% down? Some restrictions apply.
For more information, send me an email jim@fsbfinancial.com
VA Loan
The Best Loan Program for Men & Women Who Serve
First, let us say "Thank you for your service". I recognize that our freedom comes from the sacrifice you made for us! VA Loans offer 100% financing up to $510,400 (In the state of Kansas and Missouri, for example) for military personnel & veterans with no money down! Every day, military personnel and veterans enter the real estate market, unaware there is a financing option exclusively for them. One unknown secret is that a VA buyer can get a home loan of greater than $510,400, but there could be some small down payment, depending on eligibility. There is no cost to apply for a VA loan. Just call give me a call at 913-749-0098. We have great systems in place to minimize the stress associated with home purchases with great rates, low fees, and closing on time.
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Who qualifies for a VA Loan?
- Veterans
- Active-duty service members.
- Reservists & National Guard who have served or currently serve on active duty.
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What benefits are there to VA Loans?
- 100% Financing for purchase or refinance*
- 30-year fixed-rate or adjustable-rate loans.
- You may qualify for a VA loan with less than perfect credit.
- Available to veterans & their spouses.
- No monthly mortgage premiums
- Larger loans sizes with down payments
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What Property Types Qualify for VA Loans?
- 1-4 Family residential properties.
- A and FHA-approved condos.
- Townhomes
Farm residences are ineligible for VA loans; however, there is no maximum acreage for property and funds can be applied to home construction.
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What's the Minimum and Maximum Amount A Person Can Borrow?
- The maximum VA loan amount with no down payment is $510,400. With a down payment, qualified borrowers can obtain loan amounts beyond $510,400. IN specified "High-cost" areas, that loan limit can peak at $1,000,000. And in 2019, the Blue Water Act was passed which allows for a higher loan amount for Veterans with full entitlement.
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Do VA Loans Take Longer To Close Than Other Loan Programs?
- Our Teams can close the amount of any loan in 30 to 35 days with the buyer engaging with us. VA loans are a simple loan to originate and close.
USDA Rural Development Loan
THe United States Department of Agriculture has created a loan program to help promote commerce within the rural areas of the United States. The goal of this program is to find a primary residence for the home buyer. The loan is NOT for a 500 Acre dairy farm, but instead a residence that may be located on 3 to 25 acres that are common for the particular rural area.
What Does This Program Do?
This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe, and sanitary dwellings as their primary residence in eligible rural areas.
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What Type Of Loan Are RD Loans?
- 100% Financing for purchase or refinance.
- 30-year fixed rate.
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Who May Apply For This Program?
- Applicant must meet income eligibility.
- Home must be in an eligible area for the loan guarantee.
- Agree to personally occupy the dwelling as their primary residence.
- Applicant can be a US Citizen, US non-citizen national or Qualified Alien.
- Demonstrate the willingness to meet credit obligations in a timely manner.
- Purchase a property that meets all of the program criteria.
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How Do I Get Started?
- First, call us to share your goals with us. Call me at 913-749-0098
- Then I will have you apply online with an easy program that just asks questions about your situation. Apply at www.applywithjim.com
- Second, we will obtain a credit report to begin the process at no cost to you for your pre-approval.
- Third, you will want to get the following items 30 days of recent pay stubs, 2 years of Federal Tax Returns, all schedules, 2 years of W-2's and 2 Months of Bank statements, Your income documents are critical to see if you meet the guidelines of this program.
Jumbo Loan
A Jumbo mortgage home loan for an amount that exceeds conforming loam limits established by regulation. Conforming loam limits are set by the Federal Housing Finance Agency, which overseas Fannie Mae and Freddie Mac, the government-sponsored enterprises that buy mortgages from lenders. The conforming loan limit is $647,200 for a single family residence in most of the Continental United States and in some metropolitan areas have a larger conforming loan limit for these highest-cost areas.
How do I qualify for a Jumbo Loan?
Borrowers wanting to obtain a Jumbo mortgage typically have to have a higher FICO score than some other loan programs. Typically FICO scores of 700 and above are required.
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Typically the documentation for a Jumbo Loan include:
- The most recent 30 days of consecutive pay stubs
- The most recent W-2s or 1099s for the past two years
- Two years of Personal Federal Tax Return, all schedules
- Two years of Corporate Returns, K-1s for the past two years
- The most recent 60 days of bank/asset Statements
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What else should I know?
- The down payment for Jumbo Loan is typically 20% down. However, I do have access to some great portfolio Loan products that require as little as 5% down up to a $650,000 purchase price!
- While the underwriting process is similar to confronting loans, please know that two appraisals may be needed instead of just one for a Jumbo Loan.
- Debt to Income Ratios are typically set 43% or less - a guideline that does not have much flexibility - Please note that with my access to Doctor Loan Programs, we treat student loan debt with 'common sense' underwriting!
- Monthly reserves, (in terms of PITI) can be 6 to 12 months are typically required.
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How do I get started?
- Call us to get your loan application started. Give me or my team a call at 913-749-0098. We will talk you through the process.
- With such a large purchase, we highly recommend that we meet early in the loan process to discuss goals, needs and options available.
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What other factors should I know?
- As mentioned before, the typical down payment is 20% for a single-family primary residence.
- If the Jumbo Loan is going to be used for a Condo for your primary residence, the down payment will increase to 25%
- And if the jumbo loan is for a second home, the down payment may also be 25% down and even more reserves could be required.
- First State Bank Mortgage has the ability to work with nearly a dozen different investors who offer Jumbo Loans. And, First State Bank Mortgage can underwrite most of these loan programs locally and not have to send your file directly to the Investor for their underwriting.
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This advantage allows us to control the complete file transition from processing to underwriting, to the final closing.
Remember that each borrower's needs are different. There is not just a single 'template' for a Jumbo Loan, but instead, depending upon the borrower's needs, qualifications, there can be several Jumbo Loans a borrower can or cannot obtain. A thorough review of your file is HIGHLY recommended. If you need some very specific information, please contact me by email at jyarrington@fsbfinancial.com
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Portfolio Loan
Loans that work for you and your plans.
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Combo Loans
When you want to purchase a home but do not have enough money for a down payment - we can help.
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This loan type typically has a combination of a first mortgage up to 80% loan to value (to avoid PMI.) And a 2nd mortgage to fill in the funds you need to purchase a home.
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These loans are popular when purchasing a "Jumbo Type" home requiring a 20% down payment, but can be used at any sales in the conforming loan limits too.
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The combo loan may be a favorable loan for those bank customers have created large investment portfolios or have maximized the funding of their retirement account. Having a minimal amount down does not mean you can't afford a home, it just means we need to find the 'combination' for you to qualify for a larger home purchase.
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So rather than have customers liquidate their assets at the wrong time in the market, our combination loan would be a great alternative solution.
Bridge Loans
Want to buy before you sell?
Can we help you with your upcoming move without your current home sold? Like many borrowers, you may have your equity tied up in your home.
First State Bank Mortgage wants to help you with all of your financing needs. We can show you how to pull equity out of your home and use this for a down payment on your new home purchase.
The even better news is that we offer an interest-only loan during this short period to help you with your cash flow before your current home sells.
Need more info or a specific plan, call me
Lot and Land Loans
Found the perfect lot for your new home construction?
We understand. You want to find the perfect location, the walkout lot, that will make your new home your dream home.
We will help you with a lot or land loan. Yes, there are some restrictions, but our goal is to be the path to the perfect home construction on your excellent lot!
Construction Loans
For the times when you want to build your perfect home and be in control of the finances.
Many builders will welcome your ability to obtain the construction loan so that they do not pull on their commercial building loans they use for spec homes.
We offer the ability to have as little as 10% equity or down payment into your construction loan when our competitors want a larger down payment of 20%.
We can make this a fantastic banking relationship. We have our construction management staff to protect your draws and flow of money out of the construction loan.
How can we help?
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Renovation Loans Purchase / Rehab or Refinance / Rehab, we can help.
Do you love your neighborhood? So much that you can see leaving such a great location and area? But then you think, my home is not HGTV ready.
It happens to us all. We want to add improvements and updates to our current home to enjoy our homestead even more!! We base all of your plans based on an "as-completed" appraisal, which means you will know what your home will be worth before you even start any construction.
We see more and more of these requests all the time. We can help you with your plans. We add money for contingencies, for the "just in case" situation.
Purchase Renovation loans – We can set this up with as little as 5% down on the sales price + improvements to get you started.
Refinance Renovation loans - In fact, we may be able to offer you a renovation loan and not even need a down payment. How easy would that be?
Home Equity Line of Credit Better known as a HELOC
Are you in need of a line of credit to use over and over again?
We can help. We offer HELOCs up to 95% of your home's appraised value. We offer these loans for our bank customers to help with debt consolidation, for working capital, or just a safety net you can obtain today but not use until you need it.
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First State Bank Mortgage is a division of First State Bank of St. Charles, MO. NMLS #416668, and licensed to lend in 50 states. Equal Housing Lender. This is not a loan commitment or guarantee of any kind. All loans subject to approval. Programs, rates, terms, and conditions are subject to change without notice. First State Bank Mortgage, 2850 West Clay, St. Charles, MO 63301.
