CONVENTIONAL LOANS

Conventional Loans

A conventional loan is a loan backed by either Fannie Mae or Freddie Mac, the two entities which comprise the Federal Housing Finance Agency (FHFA). More than half of all new mortgage loans are conventional loans. Conventional loans can be used to finance all different types of residential properties. Down payments generally range from 3% -20% of the purchase price. Conventional loans tend to have cheaper mortgage insurance than any other loan program! The loan generally requires some form of mortgage insurance if the down payment is less than 20 percent. A conventional loan caters to those who have more money to put down & great credit scores. Conventional loans can be offered in 30-year, 25-year, 20-year, and even 15-year options. When choosing a mortgage loan you can opt for a fixed-rate or an adjustable-rate. A fixed rate mortgage never changes the interest rate during the life of the loan, whereas an adjustable rate can raise or lower depending on average interest rates at the time.

Conventional Mortgages can also be categorized as conforming or non-conforming. If a loan falls under the underwriting requirements set forth by the government-sponsored entities Fannie Mae and Freddie Mac, it is deemed a conforming loan. If a loan does not meet all these requirements, it is considered a non-conforming loan.

The most common way to determine whether you should do a conventional loan or jumbo mortgage is to be aware of the loan amounts. As of 2020, a mortgage with a loan amount below $510,400 is generally considered conforming, whereas any loan amount above $510,400 is considered nonconforming, better known as a Jumbo Mortgage. Conforming limits tend to vary depending on the area of the country. Jumbo Mortgages can sometimes have stricter requirements because they carry greater risk.

Key Conventional Mortgage Loan Points:

As low as 3% down on a primary residence purchase
Debt-to-income ratio as high as 45%
Qualifying guidelines more strict than FHA
Requires monthly mortgage insurance (MI) if down payment is less than 20%
MI can be canceled at 80% loan-to-value
Loan amount up to $510,400 as of 2020 (anything higher is a jumbo loan in most counties)

*Loan terms and limits subject to change. This page is meant for educational purposes is not a commitment to lend. To qualify for a conventional mortgage loan, please speak to one of our licensed loan officers or apply online.

WHY WE CHOSE A CONVENTIONAL LOAN

We have done a couple of mortgage with The Staples Group now because the experience has been very enjoyable. We had worked with another lender in our first home purchase and were pleasantly surprised at how low the Staple Group rates were just how much they communicated with us during the process! When spending so much money it was nice to always know what was going on. After doing an FHA loan for our first home purchase, we opted for a conventional mortgage in our most recent transaction because we were able to come up with 20% down and avoid mortgage insurance entirely! It feels great to not pay mortgage insurance anymore!

– The Glauser Family

FHA LOANS

BACKED BY FHA

With an FHA mortgage loan, you have the confidence that the loan is funded by Sun American Mortgage and backed by the Federal Housing Administration (FHA). The FHA has been helping home owners since 1934 by insuring home loans so that we can offer you a better deal. FHA is the largest insurer of residential mortgages in the world. An FHA loan allows buyers to purchase a home with as little as 3.5% down.

An FHA Home Loan has more flexible guideline requirements which are ideal for first-time home buyers or those with less than perfect credit. FHA home loans are also excellent for those who have less money to put down or with higher debt-to-income ratios. FHA home loans are also assumable, which means someone can take over your loan for you.

WHY CHOOSE AN FHA HOME LOAN?

Only 3.5% down
Flexible qualification guidelines
Debt-to-income ratio as high as 55%
Requires up-front & monthly mortgage insurance (MI)
Maximum home loan limits vary by county
Mortgage Insurance (MI) required for the entire life of the loan
Allows for no cost, no qualifying “streamline” refinance

*Loan terms and limits subject to change. This page is meant for educational purposes is not a commitment to lend. To qualify for an FHA home loan, please contact one of our licensed loan officers or apply online.

WHY WE CHOSE AN FHA LOAN

We called Becky and Brandon after seeing how many positive reviews they had online. It was our first home purchase and we wanted to make sure we knew about all of our options. We met with them and they showed us all of our options. We ended up choosing an FHA loan because of the great interest rate and the fact that we only had to put 3.5% down. Our realtor negotiated to have all of our closing costs paid for by the seller so it worked out perfect for us! We are so grateful! We recommend them to all our family and friends!

– The Cervantes Family

REVERSE MORTGAGES

NO MONTHLY MORTGAGE PAYMENTS

Reverse Mortgages – If You’re Over 62, Let The Bank Pay You.

Sun American Mortgage does more reverse mortgages than any other company in the Southwest! Choose a local expert with the lowest cost.

A reverse mortgage or home equity conversion mortgage (HECM) is a type of home loan for older homeowners (62 years or older) that requires no monthly mortgage payments. This is an FHA insured loan. A reverse mortgage loan allows those who are at least 62 years of age, or older, to pay off a forward mortgage loan or use the equity in their home for other purposes. In general terms, a borrower needs at least 40 to 57% (depending on age) in equity to be able to purchase or refinance with a reverse mortgage loan.

The amount varies depending on the age of the borrowers. Those who qualify on a reverse mortgage refinance can receive a lump sum of cash, a monthly income, a line-of-credit, or a combination of those things. In a traditional mortgage loan, you pay the lender, but with a reverse mortgage the lender pays you!

You are not required to pay back the home loan until the home is sold or otherwise vacated. As long as you live in the home, you are not required to make any monthly mortgage payments toward the loan balance. You are required to remain current on your property taxes, homeowners insurance and condominium fees (if you live in a condo), as well as maintaining upkeep on the home.

The home owners retain title to the property with a Reverse Mortgage. No repayment is required as long as the borrower lives in the property. In the event of death, heirs are responsible to pay off the lower of the loan balance or upon received a current appraisal, they can pay 95% of the appraised value.

Contact one of our Reverse Mortgage Specialists to find out if a Reverse Mortgage is right for you!

*Must be 62 years or older to qualify. Borrower must have a minimum percentage of equity in the home to qualify. Other terms and conditions may apply.

WHY CHOOSE A REVERSE MORTGAGE?

No Monthly Mortgage Payment Required
Minimum 40-57% equity required to qualify (according to age)
Financial assessment required
No minimum credit score requirements
Requires upfront and monthly mortgage insurance (MI)
An advantage of a reverse mortgage refinance would be to possibly receive monthly income or a lump sum

WHY WE CHOSE AN REVERSE MORTGAGE

When health issues arose and we could no longer stay in our home because my husband needed a one level home. Knowing this would be our final home, we chose to do a Reverse Mortgage.

We did it mainly for the purpose of not having a mortgage payment. It would free up a little money for things that might come up. Being older you never know what issues you will be facing.

Our realtor directed us to The Staples Group and mortgage loan consultant Nan Glauser. She was wonderful in helping us every step. One thing I appreciate about Nan was that she was always letting us know what was happening with each step that needed to be done. She would contact me at least weekly and most often many times a week or daily. I felt like she really cared and was concerned about us, especially with my husband’s health issues. It was a blessing having Nan Glauser as our consultant.

Thank you Nan for blessing us and getting us into our new dream home that we love and are enjoying so much.

– The Alldredge Family

RURAL USDA LOANS

Rural Housing USDA Loans – $0 Down. Easy To Qualify. Lower Rates

The USDA Rural Housing program is a federal program designed to help certain lower population towns and counties grow by giving home buyers a better deal, better terms, and more options when they buy or refinance a home. Most banks do not offer USDA Rural Housing Loans but we do! You may be eligible if you live in a rural area and your household meets the income requirements.

The desired home must fall within specific rural areas to qualify. Not sure if your home is eligible for a USDA Rural Housing Loan? Call one of our licensed loan officers at 435.216.3081 and we can do the research for you! This USDA home loan has flexible credit requirements, requires zero money down, and your closing costs can even be financed into the home loan!

If you are interested to see if your current or desired home qualifies, please reach out to our licensed loan officers.

WHY CHOOSE A RURAL HOUSING USDA LOAN?

Buy your home with a USDA Loan!
Zero down payment
Low monthly Mortgage Insurance (MI)
USDA home loans have low closing costs
Available for 30 year fixed-rate loans only
Available for properties in specified rural areas
Flexible qualification guidelines
Financing up to 103.5% of the appraised value
Requires up-front guarantee premium & low rate monthly MI
Maximum income limits vary by county

WHY WE CHOSE A RURAL HOUSING USDA LOAN

When my wife and I decided to move to Utah, I started my home search online. I found the Staples Group on Facebook and after reading all of their positive reviews I decided to call them. I knew I made the right choice after our very first meeting. Becky took things very slowly and explained all of our options to us. I decided to go with the USDA Rural housing loan because of the low mortgage insurance and the ability to put zero money down. We ended up building a home and are really happy how it turned out. We were also pleasantly surprised when they found us a grant for $2,000 from our city! They are my lenders for life!

– The Rogers Family

VA LOANS

AFFORDABLE HOME FINANCING

This is a Veterans Administration (VA) insured loan available to Veterans of the Armed Forces. It allows for 103% financing so a veteran can buy a home for no money down and finance the closing costs. The VA charges an up-front funding fee (which can be financed into the loan) that varies based on whether or not it is the borrower’s first time getting a VA mortgage. This program is a perfect option for a Veteran seeking the most affordable type of home loan financing.

Loan Terms: 15 & 30 Year Loan
Interest Rate Types: Purchase, Refinance
Loan Types: Fixed, Adjustable
Property Type: Primary Residence

WHY CHOOSE A VETERANS ADMINISTRATION HOME LOAN?

Available to eligible veterans only
No down payment required
VA up-front funding fee, but no monthly MI
Allows for no cost, no qualifying “streamline” refinance
Available for 30-year fixed-rate home loans only
Subject to VA eligibility rules

WHY WE CHOSE A VA LOAN

I moved across the country for a new job opportunity in Southern Utah. As I didn’t know any local lenders, my realtor recommended I use Becky for my VA loan. I am glad I did. She and her team kept me very informed and I felt like they were very organized. This helped take some off the load of for me during the big move. I would definitely recommend them to my family and friends!

– The Hicks Family

UTAH HOUSING LOAN

A Utah Housing Loan is a ZERO down loan program that offers flexibility for buyers needing help with down payment and closing costs. Utah Housing Corporation (UHC) was created in 1975 by Utah legislation to serve a public purpose in creating an adequate supply of money with which mortgage loans at reasonable interest rates could be made to help provide affordable housing for low and moderate income persons.

UHC Loan Programs offer mortgage loans to qualified first time homebuyers and homebuyers who have previously owned a home. UHC provides down payment and closing cost assistance helping homebuyers without the required funds to purchase a home. If cash at closing is your challenge, the Utah Housing Down Payment Assistance Second Mortgage can help. When combined with a first mortgage, qualified borrowers can purchase a home with little or no cash investment.

WHY CHOOSE A UTAH HOUSING LOAN?

Your total gross household income must fall within the income limit restrictions. These limits vary by county so please call 435.216.3081 to find out if you qualify
Your credit history must indicate that you pay your bills on time
You must have at least a 620 credit score
You must be able to qualify for government (FHA) or conventional financing
You must live in the home – can’t purchase as a rental
Non-occupant co-signers are allowed (First Home Loan only)

JUMBO LOANS

You’ve worked hard, scrimped, and saved. You deserve to buy your dream home. A jumbo loan can make that happen!

What Makes A Loan ‘Jumbo?’

The general rule of thumb is that a loan is jumbo if it is over $510,400 (as of 2020) for a single-family home. More specifically, however, a loan is jumbo if it is above the limit backed by Fannie Mae and Freddie Mac in your geographic area. Jumbo Loans are designed for higher price point homes. If you are ready to buy or build your dream home, a Jumbo Home Loan might be for your family!

With these larger home loan amounts, qualifying standards can be a bit more stringent, usually higher credit scores and down payments are required. Jumbo Loan guidelines are similar to coventional loan requirements but Borrowers also need to have more ‘reserves’ compared to other loan types.

You can also choose to increase your down payment and borrow less than $484,350. This would be very realistic if the mortgage is only slightly above the jumbo loan threshold. Additionally, there are other creative financing options that The Staples Group can help you with! Once of the most common ways to do it is through an 80-10-10 loan. This means you may have to only put 10% down to avoid mortgage insurance. We are ready to help you purchase your dream home.

*Loan terms and limits subject to change. This page is meant for educational purposes is not a commitment to lend

WHY WE CHOSE A JUMBO LOAN

I found the Staples Group on Facebook and after reading more about the reviews decided to call them to help me buy my first home. My wife and I were moving to Utah from a different state so we were worried about lining everything up right and managing the costs for a major move.

Brandon & Becky recommended the Utah Housing loan for us. The loan worked out great and we were able to purchase a brand new home!! We are very grateful that they kept us in the loop and helped us organize the timing of things just right during a stressful time!

– The Davis Family

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CONVENTIONAL LOANS