FHA Loans

The Federal Housing Administration, known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders. First Choice Bank is a FHA approved lender. We can assist borrowers in qualifying for FHA loans with as little as 3% down on home purchases. FHA loans permit home buyers up to 97% of their purchase price and 97% of their homes value for a streamlined refinance, or up to 95% of their home's value for a cash-out refinance.

FHA loans provide the borrower with the option to put down a smaller down payment, allowing them to have the flexibility in calculating the household income and payment ratios. Loan limits are set by counties in each state. Call an First Choice Bank Loan Officer to help you determine the FHA loan limit for in your state and county.

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VA Loans

Veteran Administration Loans, commonly called VA loans, provide assistance to U.S. Veterans with the financing for home purchases and refinancing current home mortgages. These loans are 100% guaranteed by the Department of Veterans' Affairs, making home loans more affordable for veterans, active-duty members and surviving spouses.

Currently, there are over 29 million veterans and service personnel eligible for VA financing. The First Choice Bank offices specialize in helping military veterans qualify for a VA home loan.

Advantages of VA Loans

There are many advantages for veterans obtaining a VA loan through First Choice Bank. Here are a few of the benefits you will receive:

• No down payment required
• No monthly mortgage-insurance premium (private mortgage insurance, or PMI)
• Reduced fees on closing costs
• No pre-payment penalties
• Growing equity mortgages (GEMs) have gradually increasing payments with all of the increases applied to the principal, resulting in an early payoff of the loan.
• The mortgage is assumable, subject to VA approval of the assumer's credit.

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Reverse Mortgages

At First Choice Bank, we understand that you have worked hard to build the equity in your home and now it's time to let that equity work for you. A reverse mortgage can provide senior Americans with greater financial security. Today, there are many seniors using their reverse mortgage to supplement social security, cover unexpected medical expenses, pay for home improvement projects, and much more.

What is a reverse mortgage?

A reverse mortgage is a home loan that lets the homeowner convert a portion of their home's equity into cash. While traditional home equity loans or second mortgages require monthly payments, on a reverse mortgage there are no monthly payments until the borrower(s) no longer use the home as their principal residence.

When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees.

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits in your area. Generally, the more valuable your home is, the older you are and the lower the interest, the more you can borrow.

Qualifications for a Reverse Mortgage

To be eligible for a reverse mortgage, you must meet the following requirements:

• Must be a homeowner and have sufficient equity in the home to qualify
• Must be 62 years of age or older
• Must be living in the home and it needs to be your primary residence
• Your home must be a single family dwelling or a two-to-four unit property
• Some townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved

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