Financing

Loan Types

• Conforming - Conforming loans refer to loan amounts that conform to government service standards as determined by Fannie Mae & Freddie Mac (the original government agencies, set up in the early 1940's, established to help people finance new homes). Conforming loan amounts change every November based on the Median price of homes sold that year.
  
  
• Jumbo (Non-Conforming) - Jumbo loans refer to those loan amounts over the "conforming" range or above the conforming loan limit at the time.
  
  
• Government Loans - Government loans refer to those loans that are guaranteed by one of two federal agencies. The two types of government loans are: Federal Housing Administration (FHA) loans and Veterans Administration (VA) loans. The advantage of FHA loans are that they are easier to qualify for and they allow a borrower to finance more of the loan amount than non-government loans.
  
  
• Investment Properties (Non-Owner Occupied) - These types of homes are acquired for investment purposes. Financing for investment properties can be achieved using any of the above described programs. Typically, the rates for financing on investment properties are higher than owner-occupied homes and the LTV's allowed are lower, due to the fact that default rates tend to be higher on these types of loans.
  
  
• Cash-Out Refinances - Occasionally, when refinancing a first trust, a borrower wants to "cash out" some of the equity that has been built into the loan. Under specific conditions established by the lender, a borrower can actually receive a check for an amount of money that meets those conditions. Cashing-out is not normally limited to any type of loan program, it can be done with most of the described programs.

Second Mortgages

• Equity Seconds - Equity seconds are second mortgages that use the equity you have in your house as the basis upon which a lender loans you money. Most lenders will require an appraisal in order to establish your house's value and the equity contained therein. Borrowing with an equity second normally allows you to obtain a better rate due to the fact that the money borrower is secured on property you have ownership in.
  

Other Factors to consider

An appraisal will be made on the property based on the completed value or after the renovation is complete. You just need to provide the appraiser with a set of plans for the renovation and the cost of the renovation or construction. With all of the above being done, closing your renovation loan should proceed smoothly.

MORTGAGE COMPANIES

COMMERCIAL LENDERS

Stephanie A. Haase
Vice President
SunTrust Mortgage
PH 770-804-7215
FX 404-581-4923
Email: stephanie.haase@suntrust.com
www.suntrustmortgage.com/shaase

Duane Fossyl
Regions Private Banking
Ph: 770-481-4380
Fx: 770-392-6575
Email: duane.fossyl@regions.com

RESIDENTIAL LENDERS

Stephanie A. Haase
Vice President
SunTrust Mortgage
PH 770-804-7215
FX 404-581-4923
Email: stephanie.haase@suntrust.com
www.suntrustmortgage.com/shaase

First Atlantic Mortgage
Ed Pennington
PH 678-405-0208