Mortgage Options

Different Mortgage Options Available for You

Everyone’s financing needs are unique. At New England Home Mortgage, we offer loans to meet the specific needs of each of our clients.

Read more below and call us today to find out which mortgage product is the right one for you!

Conventional Loans (Fixed / Adjustable Rate)

A conventional mortgage is a loan that is not guaranteed or insured by any government agency. It is typically fixed in its terms and rate. Down payments of 20% or more do not require mortgage insurance, yet lower down payment options are available (as low as 3%-5%).  Credit score has a big impact on interest rates and qualification. Terms usually run from 10-30 years for fixed rates.  If paying monthly mortgage insurance, you can stop paying mortgage insurance once you have 20% equity in your home.  Gift funds are acceptable with conventional financing.

FHA Mortgages

An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA minimum down payment is 3.5% and interest rates are less impacted by credit score. FHA mortgage insurance, however, lasts for the life of the loan. Gift funds are acceptable with FHA financing.  The debt to income requirements are less stringent as compared to conventional, which often means more purchasing power.  It is typically fixed in its terms and rate and terms usually run from 10-30 years for fixed rates.

VA: 

A VA loan is a mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. VA offers 100% financing with no mortgage insurance.  A VA Certificate of Eligibility is required to apply for a VA loan.  Gift funds are acceptable.  The debt to income requirements are less stringent as compared to conventional, which often means more purchasing power.  It is typically fixed in its terms and rate and terms usually run from 10-30 years for fixed rates.

USDA: 

A USDA home loan from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture.  100% financing is available with no mortgage insurance.  There are strict income and property requirements for eligibility.  Gift funds are acceptable with USDA financing.  The debt to income requirements are more like conventional loans.  It is typically fixed in its terms and rate and terms usually run from 10-30 years for fixed rates. 

REHAB/RENNOVATION:

Both Conventional and FHA Rehab loans are available. These loans allow you to finance repairs and renovations made to the property, which can be completed after closing.  There are limitations to what repairs can be made that vary based on the product type.  There is more upfront paperwork required on these loans and rates are usually higher than regular conventional or FHA loans.  If interested in these programs, please set up a consultation to ensure that you fully understand the product and requirements. 

CHFA:

CHFA financing is done through The Connecticut Housing Finance Authority and offers a variety of loan programs specifically for first time home buyers.  Housing counseling is required.  CHFA minimum down payment is 3.5% and interest rates are less impacted by credit score and down payment assistance is offered if you qualify.  Gift funds are acceptable. 

Reverse Mortgages

Reverse mortgages are available to clients age 62 or higher.  It allows a homeowner to convert the equity in their home into cash or the ability to draw against a set line of credit.  The borrower must remain living in the home and remain current on taxes, home owner’s insurance and HOA fees, if applicable.  There are no restrictions on how the proceeds can be used by the borrower.

(860) 736-2747
37 W. Center Street, Suite 208, Factory Square, Southington, CT. 06489