Mortgage

Loan Types

Fixed Rate Loans

If you are looking for security, you might consider a fixed rate on your home loan. BOC Bank offers very competitive interest rates on all mortgage loan products.

Adjustable Rate Loans

Adjustable Rate Loans can be a great fit for home buyers who plan to sell or refinance their home between 3 and 10 years and are looking for the lowest possible mortgage rate available. Our adjustable rate mortgages are fixed for periods of three, five and ten years. Adjustable Rate Mortgages (ARMs) are fixed for the initial period and then adjust depending on the index that the mortgage is tied to. The new rate at the adjustment period is determined by the index and a fixed margin that was established at the beginning of the mortgage loan.

Conventional Loans

About

Conventional mortgage loans are the most common types of home mortgages and are insured by either Fannie Mae or Freddie Mac. A conventional loan is a type of mortgage that is not part of a specific Govt. program, such as Federal Housing Administration (FHA), Department of Agriculture (USDA), or the Department of Veteran's Affairs (VA) loan programs. However, conventional loans are commonly interchangeable with conforming loans since they are required to conform to Fannie Mae and Freddie Mac's underwriting requirements and loan limits. With down payments as low as 3%, conventional loans offer better terms with lower mortgage insurance costs and rates based on credit rating. Additionally, conventional home loans offer the ability for borrowers to finance multiple properties including second homes as well as investment properties.

Details

Conventional mortgage loans are great for borrowers with good or excellent credit. Conventional loans are conforming loans which have different criteria from other loan programs. The Conventional home loan limit is up to $484,350. Conventional mortgages follow fairly conservative guidelines for credit scores, down payments, and debt ratios.

Conventional mortgage loans have more options and flexibility. There are several factors that will determine if you qualify for a conventional home loan such as credit score, down payment, financial history, income, and the loan amount. All borrowers will be required to provide proof of income, and the lender will check your credit score to determine best loan options. Your credit report will tell the lender several things, including your debt-to-income ratio and your payment history. If the borrow has a history of late payments and/or a high debt-to-income ratio, this will make it more difficult to obtain a conventional approval. Conventional home loans offer the ability for borrowers to finance multiple properties including second homes as well as investment properties. The amount you want to finance may play a role in whether you get financing.

Jumbo Loans

About

Jumbo Loans are not secured by either Fannie Mae, Freddie Mac, or FHA. These mortgage loans are made possible using private investor programs. This means that there is no guarantee provided to the investor, so consequently the mortgage guidelines are not standardized and are subject to the investors' requirements. Typically, these guidelines are stricter than a Conforming loan, but makes it possible for larger purchases to be financed.

Details

  • $484,350 to $3,000,000 loan amount
  • 90% LTV maximum
  • Fixed rate and adjustable rate options

If you are looking to purchase a larger, more expensive home, BOC Bank offers Jumbo loans for home loans that exceed $484,350. A jumbo mortgage is a home loan with an amount that exceeds the conforming loan limits imposed by Fannie Mae and Freddie Mac. Jumbo Home Loans have no PMI (private mortgage insurance), so the down payments are typically large, although BOC does offer a 90% LTV without PMI. The credit score requirements are typically much stricter and usually have a minimum of a 700-credit score.

FHA Loans

About

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). FHA does not loan money for a mortgage. Instead, the borrower will get a loan from an FHA-approved lender, like a bank. The borrower will pay through mortgage insurance premium payments to FHA and FHA will insure the loan. Mortgage Insurance Premium provide protection against losses as the result of homeowners defaulting on their mortgage loans. FHA requires that the borrower pay two types of mortgage insurance premiums. The first is upfront mortgage insurance which is 1.75% of the base loan amount as of 2018 and is rolled into the loan amount. The second mortgage insurance the borrower will pay is monthly. This ranges from .45% to .85% of the base loan amount depending on the loan amount, length, and loan to value. Available to all buyers, FHA loan programs are primarily designed to help low- and moderate-income families who do not meet requirements for most conventional loans that have more strict underwriting guidelines. However, there are cases in which borrowers who are eligible for conventional financing will still choose an FHA loan. FHA loan programs are particularly beneficial to those buyers with less available cash as the required down payment is lower than for most conventional loans. Rates on FHA loans are also generally slightly lower than conventional mortgage loans.

Details

  • Easier to qualify
  • 3.5% down payment
  • Lower minimum credit scores
  • Higher debt to income ratios
  • 100% allowed with approved gift fund source
  • Seller paid closing costs to 6%
  • Flexible underwriting
  • No prepayment penalties

VA Loans

About

VA loans are available through United States Department of Veterans Affairs. VA loans help service members, veterans and eligible surviving spouses to become homeowners. In most cases, a down payment is not required on a VA guaranteed loan, and the borrower usually receives a lower interest rate than is ordinarily available with other loans. The VA charges a funding fee to issue a guarantee. The fee may be paid in cash by the buyer or seller, financed in the loan amount, or waived if the veteran is disabled.

Details

  • Low rates
  • 100% loan to $484,350
  • Jumbo VA loans available over $484,350 with down payment
  • Easier qualifying
  • 4% seller concessions
  • No prepayment penalties
  • Funding fee can be financed

In order to take advantage of VA Home Loans, the veteran has to occupy the home as their primary residence. The veteran does not have to be a first-time home buyer and may reuse his/her benefit. The lender, not VA, sets the interest rate and discount points, so they may vary from lender to lender. Ask BOC about our lender credit program for our Veterans. Below are some of the conditions that will be required for a VA loan. These documents include but are not limited to:

  • Veteran's VA certificate of eligibility
  • Past 2 years W2 statements or tax returns if self employed
  • Most recent 30-Day paystub
  • Two most recent monthly bank statements
  • Copy of DD214 (if the veteran has been discharged/separated from the military).

USDA Loans

About

A USDA Loan is guaranteed by the US Department of Agriculture (USDA) and is used for the purchase of rural property. USDA mortgage loans require a decent credit history along with income restrictions. USDA loans allow for 100% financing if you qualify. To be eligible, one must be purchasing a property in a rural area as defined by the USDA. One must meet the income restrictions for the County the buyer is interested in. Each county has a maximum income requirement.

Details

A USDA loan is a government-insured home loan that allows you to purchase a home with NO Down Payment. USDA Loans offer 100% financing to qualified buyers.

  • USDA loans require no down payment, meaning it's possible to obtain 100% of the property value.
  • The borrower must meet the income restrictions for the County the borrower is interested in.
  • The borrower must be purchasing a property in a rural area as defined by the USDA.
  • The home that the borrower is looking to purchase must be owner-occupied.

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