Products

FIXED RATE MORTGAGE LOANS

Fixed Rate mortgages are the most popular home loans available for buying a home or refinancing an existing mortgage. They offer borrowers the security of stable, affordable monthly payments and protection from market changes.

Fixed Rate Overview

A Fixed Rate mortgage is a loan featuring an interest rate that stays the same over the life of the loan, as opposed to an ARM mortgage, which has an interest rate that can adjust periodically. Fixed Rate loans are among the most popular loan options for borrowers seeking to purchase or refinance a home loan, as they offer the stability of an unchanged monthly payment, regardless of market fluctuations. With a Fixed Rate mortgage, your payment will be the same every month, so you can plan your finances accordingly.

15 Year Fixed mortgages and 30 Year Fixed loans are the most popular loan types for buying a home and for refinancing a current mortgage.

You can use our Fixed Rate mortgage calculator to get an idea of what your mortgage payment might be.

Fixed Rate Benefits

Many borrowers choose a Fixed Rate loan to buy a home or refinance because of the Fixed Rate advantages:

• Affordable Payments: With terms from 10 to 30 years, you can choose how quickly you pay off your mortgage.
• Security: Particularly popular with first time home buyers, the security of a fixed rate loan is attractive to many borrowers. Even if current rates go up, yours won't. You'll have consistent monthly payments with no surprises, so you can plan your finances accordingly.
• Loan terms are straightforward and easy to understand

Many borrowers choose a Fixed Rate loan to buy a home or refinance because of the Fixed Rate advantages:

• Affordable Payments: With terms from 10 to 30 years, you can choose how quickly you pay off your mortgage.
• Security: Particularly popular with first time home buyers, the security of a fixed rate loan is attractive to many borrowers. Even if current rates go up, yours won't. You'll have consistent monthly payments with no surprises, so you can plan your finances accordingly.
• Loan terms are straightforward and easy to understand

Fixed Rate Requirements

In order to get a Fixed Rate mortgage, you'll need to go through a few simple steps. If you're shopping for a home, the first thing most borrowers do is get pre-approved for a loan.

Having a credit preapproval can:
• Save you time shopping for properties in your price range
• Create credibility with sellers by letting them know you're qualified and serious
• Speed up the closing process and get your loan funded sooner
• Improve your experience in the home buying process

If you're looking to refinance your mortgage with a Fixed Rate loan, you'll want to have proof of income and copies of:
• Homeowner's Insurance: Verify adequate coverage

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ADJUSTABLE RATE MORTGAGE LOANS

ARM (Adjustable Rate Mortgage) Loans can be used to purchase a new home or refinance a current mortgage, and because of the lower starting interest rate they offer, ARMs are a popular choice among first time home buyers.

ARM Mortgage Overview

An ARM, or Adjustable Rate Mortgage, is a variable rate mortgage. Unlike a fixed rate mortgage, the interest rate on an ARM loan adjusts to the market after a set period. For example, a 7 Year ARM will adjust after the first 7 years of the loan. Since the initial interest rates and payments are lower than Fixed Rate Mortgages, many borrowers choose an ARM option as they offer savings up front.

When the fixed period is over and your rate adjusts, interest rates changes are limited or capped.

ARM Mortgage Benefits

Many borrowers choose ARM loans because of the upfront savings they offer. With initial interest rate and payments that are lower than fixed rate loans, ARM loans offer what many borrowers need:
• Upfront savings: With the lower rate and payment in the initial period, you’re free to reach your financial goals with the money you would be using on a fixed rate loan
• Initial fixed period: Enjoy the fixed, lower rate for the initial period
• Cap on the amount you could pay: You won’t be taken by surprise because there are limits on the adjustments

Adjustable Rate Mortgages benefit borrowers who:
• Prefer a low initial interest rate and payment
• Move frequently
• Expect to earn more in a few years
• Purchase, renovate, and resell properties
• Plan to refinance before the loan adjusts
• Have growing families and need a larger home in the future

ARM Loan Requirements

• As with any mortgage, your credit history will be considered before you can get qualified. A good place to get started is with a credit pre-approval.
• The loan amount for a conforming ARM loan is typically up to $647,200 but that limit may be higher or lower in different counties.
• Down payments for ARMs are usually the same as traditional loans, but there are loan types that allow for lower down payments, and there down payment assistance resources available.

ARM Loan Options

ARM Loans can be used for:
• Purchase
• Refinance
• Cash-Out Refinance

FHA ARM, Jumbo ARM, and VA ARM loans feature an initial fixed rate period, after which the rate adjusts. All ARMs can only adjust to predetermined rules.

We offer a variety of terms:
• 5 Year ARM - offers an initial fixed period of 5 years, then the rate adjusts. The 5 Year ARM is an option for FHA, VA, Conventional, and Jumbo loans.
• 7 Year ARM - offers an initial fixed period of 7 years, then the rate adjusts. The 7 Year ARM is an option for Conventional and Jumbo loans.
• 10 Year ARM - offers an initial fixed period of 10 years, then the rate adjusts. The 10 Year ARM is an option for Conventional and Jumbo loans.

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JUMBO LOANS

Jumbo loans and Super Jumbo loans can be used to buy or refinance a home, and they offer borrowers greater financing flexibility than conventional mortgages.

Jumbo Loan Overview

Sometimes traditional loans aren’t large enough to buy the home you really want. A Jumbo loan is a mortgage that can exceed Fannie Mae and Freddie Mac's conforming loan limits of $766,550, or $1,149,825 allowed in some high-cost areas. Also known as non-conforming loans, Jumbo loans and Super Jumbo loans offer the flexibility of borrowing with less government restrictions.

Jumbo Loan Benefits

• Flexible terms: Your loan, the way you want it, with loan options up to $15 Million
• Non-occupying co-borrowers allowed: A family member or friend who won’t be living in the home can co-sign to help you qualify
• Options up to 90% LTV:
• Fixed and ARM programs available

Refinancing a Jumbo Loan:
• Lower your interest rate and monthly payment:
• Change the terms of your loan: Pay off your mortgage sooner, build equity faster

Jumbo Loan Requirements

Jumbo loans are available for primary residences, vacation homes, or investment properties.
• Loan amount may exceed the traditional loan limit of $766,550
• Low down payments.

Jumbo Loan Options

• A Fixed Rate Jumbo loan offers the security of a stable monthly payment
• Get a Jumbo ARM loan and enjoy upfront savings with initial lower payments
• An Interest Only Jumbo loan allows borrowers to make payments toward only the interest portion of the loan

To find out more about what type of Jumbo loans we offer, or if there is a better option for you, contact us.

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FEDERAL HOUSING ADMINISTRATION LOANS

FHA loans can be used to purchase a home or refinance an existing mortgage, and there are many benefits to having an FHA loan. You can purchase a home with a lower down payment than a conventional loan, or use a streamline refinance to lower your current payment, with less documentation than a traditional loan.

FHA Overview

FHA home loans are mortgages insured by the Federal Housing Administration. These mortgages are backed by the federal government, which helps FHA-approved lenders extend home financing to buyers who are unable to qualify for a conventional home loan. The FHA doesn’t issue mortgages, the agency provides insurance on mortgage payments, so more borrowers are able to attain home financing.

FHA loans are designed to make home ownership more affordable. Though they were originally intended for borrowers with less than perfect credit, they are now popular with a wider group of borrowers.

FHA Benefits

FHA loans enable more people to achieve home ownership by allowing borrowers who have less than perfect credit, no credit history, or who may have experienced some financial missteps, like a foreclosure or bankruptcy, to qualify.

The program has become popular with first time home buyers and move up buyers because you can purchase a house with a low down payment, qualify easier with lower underwriting standards and FHA loans traditionally have lower rates than conventional loans.

With low rates, low down payment options, and flexible lending guidelines FHA loans are a top choice for today's buyers.

FHA MIP (Mortgage Insurance Premium) is what makes FHA loans possible. Over the past few years FHA MIP has dropped making it even easier to qualify.
•Wide Variety of FHA Loan Products: Whether it is a 30 year fixed, 15 year fixed or a 203k loan, FHA has you covered.
•FHA Allows Low Down Payments: With a low down payment option, more people can purchase a new home. This is great for first time home buyers, those who have little money to put down, or simply for those wanting to keep reserves in the bank.
•FHA Allows 100% Gift Funds: In addition to a low down payment, those funds can come from a gift.
•FHA Insures All Types of Properties: FHA loans are available for single-family detached homes, 2-4 unit homes, condos, and manufactured homes.
•FHA Streamline Refinance: One of the best things about FHA loans is the ability to Streamline Refinance. This is the easiest way to refinance as there is no credit qualifying, no income verification, and no appraisals required.

FHA Guidelines

Since there are many FHA home loans, the guidelines vary depending on the loan type. Usually the credit stipulations are more lenient, but the loan requirements are stricter.
•Less than perfect credit ok
•Low down payments
•Gifts or grants allowed toward down payment
•Sellers, builders, or lenders may pay some of borrower's closing costs
•Higher home inspection standards

FHA Loan Options

FHA Fixed Rate Mortgages

FHA 15 Year Fixed Rate Loan:
•All the benefits of a 30 Year Fixed Rate Loan
•Save thousands in interest over the life of the loan
•Build equity faster
•Pay your house off sooner

FHA 30 Year Fixed Rate Loan:
•Low interest rates and monthly payments
•No prepayment penalties
•Low down payment options
•Gift funds allowed
•Ability to Streamline Refinance

FHA 203k 30 Year Fixed Rate Loan:
•203k is a renovation loan program that helps borrowers purchase a fixer-upper or make improvements to their existing home

FHA Streamline Refinance Loans

FHA Streamline 30 Year Fixed Rate Refinance Loan:
•Lower your payment by lowering your current interest rate
•Convert an FHA Adjustable Rate Mortgage into a fixed rate mortgage
•FHA Streamline refinance loans require less documentation than a traditional loan
•No appraisal required
•No credit check
•No income documentation
•Easy to qualify
•No appraisal required

FHA 203k Streamline 30 Year Fixed Rate Refinance Loan:
•FHA 203k allows borrowers up to $35,000 cash out to pay for home improvements or renovations.

To find out more about FHA loans, or to see if there is a better option for your needs, contact us.

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VETERAN AFFAIRS LOANS

VA home loans can be used to refinance an existing mortgage with either the IRRRL Streamline Refinance or a cash out refinance. VA loans are one of the most popular choices among eligible first-time home buyers because of the exceptional benefits they offer military borrowers.

VA Overview

A VA loan is a mortgage guaranteed by the U.S. Department of Veteran Affairs. VA loans are designed to help active duty military and veterans qualify for homeownership. They offer lower interest rates and better terms than conventional mortgages and are offered exclusively to service members and certain military spouses.

Basic Allowance for Housing (BAH)

The Basic Allowance for Housing, or BAH, is a military entitlement given to active duty personnel to provide housing for themselves and their families. The BAH is calculated by location and pay grade, and the allowance is designed to provide service members housing compensation equitable to local civilian housing markets. The BAH can be used toward rent or a mortgage, allowing you to build equity in your home, even if you don’t have a down payment to get started.

Certificate of Eligibility (COE)

Borrowers can begin the loan process without the COE, but it is required in order to move the loan through the steps toward funding. Once you've contacted a loan specialist, obtaining the COE can be taken care of on your behalf. Otherwise, you can contact the Veterans Administration directly to obtain the certificate. The VA ultimately determines eligibility, and the COE verifies the duration and character of service that qualifies the borrower for the housing benefit.

VA Benefits

Since they are insured by the government, VA loans provide access to special benefits:
• No down payment required: For many service members, this is the most attractive feature of a VA loan. You can become a homeowner without having to save for a down payment.
• Lower interest rates: Military borrowers typically receive interest rates well below those of conventional borrowers.
• No monthly mortgage insurance premiums: MI payments can cost borrowers hundreds every month, an expense you'll never have with a VA loan.
• No prepayment penalty: You can sell or refinance at any time without having to pay a penalty.
• Reduced funding fees: You can qualify for reduced loan fees or exemption from funding fees for Veterans receiving service-connected disability compensation.
• Ability to finance the VA funding fee: The funding fee can be rolled into the entire loan amount.
• Less than perfect credit usually accepted: You don't need to have perfect credit to qualify for a VA loan.

VA Requirements

VA loan eligibility typically requires one of the following:
• 90 days of service during wartime
• 181 continuous days of active service during peacetime
• 6 or more years of service in the National Guard or Reserves
• Being the un-remarried, surviving spouse of a service member who died in the line of duty, or as a result of a service-related disability

VA Loan Options

Refinance
VA mortgage holders may refinance with the VA Interest Rate Reduction Refinance Loan (IRRRL), aka the VA Streamline refinance, and the VA cash out refinance, to lower their interest rate.

For Veterans who currently have a VA Loan, the VA Streamline Refinance offers:
• Simplified refinance process
• Access to a lower rate and monthly mortgage payment
• No need for submitting bank statements, W2s, paychecks and other documents

The VA cash out refinance allows borrowers to pull cash out of their home's equity, even if they are currently in another type of loan like FHA or USDA.

Purchase
• VA loans with a Fixed Rate are great for borrowers looking for a consistent payment for the life of the loan

Contact us to find out how we can help you take advantage of a VA Loan.

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REVERSE MORTGAGES

A Reverse Mortgage is a loan that enables homeowners over 55 years old (normal reverse limits are 62.5+ years old) to convert a portion of their home equity into cash.  It may also provide a way for those with limited income to better manage their retirement finances by allowing them to use the equity to cover living the monthly mortgage payment.

Reverse Mortgage Overview

With the reverse mortgage, as long as you live in the home, you’re not required to make monthly mortgage payments.* That’s why it’s known as a reverse loan because with a traditional mortgage it’s the other way around, the borrower pays the lender monthly. In this case, the borrower is not required to pay back the reverse loan until the home is sold, vacated, or the owner passes away; and the homeowner still retains ownership of the home. However, you must remain current on property taxes, hazard insurance, homeowner’s association dues, and any other applicable fees, and you must be able to maintain the property.

Reverse Mortgage Benefits

• No credit score FICO qualification
• No debt-to-income ratios - though borrowers must demonstrate a willingness and capacity to pay basic obligations
• Provides greater freedom in retirement - you aren’t restricted on how you can use the loan proceeds and any money you take out of equity is non-taxable income
• Non-recourse loan
• No debt is assigned to your heirs when the loan becomes due. Instead, the family is given a period of time to pay off the loan or sell the home.  In addition, family members/heirs are given the opportunity to buy the property for 95% of the appraised value, even if the house is worth less than the amount owed
• A reverse purchase can help a borrower retain their savings, improve their monthly cash flow, and / or finance a purchase that would normally be beyond their budget
• It can help seniors relocate to a different region or to move closer to family
• It can also help seniors move into a more affordable home that requires less maintenance, or better serves their physical needs by providing features like handrails, wider doors, or a single-story layout
• Helps borrowers age in place

Reverse Mortgage Requirements

• Borrowers must be 55 years of age or older (normal reverse limits are 62.5+ years old)
• Borrowers must qualify to pay taxes, insurance, or HOA if applicable
• You can own your home outright, or have a low balance on your mortgage that can be paid off at closing with proceeds from the reverse loan
• The borrower also must have financial resources to pay ongoing property fees
• Before obtaining this type of loan, all borrowers and non-borrowing spouses must receive independent counseling

Reverse Mortgage Loan Options

A Reverse Mortgage is a loan that is insured by the Federal Housing Administration (FHA). It is part of the Home Equity Conversion Mortgage (HECM) program. There are several types of Reverse Mortgages:

Payment of loan proceeds – The borrower receives the loan money as a line of credit, monthly installments, a combination of both, as a lump sum, or the payment retires an existing mortgage.

Interest Rate – The borrower chooses between a fixed interest rate and an adjustable interest rate. A fixed interest rate is only available with the lump sum payment option.

Purchase – It allows the borrower to purchase a principal residence. It requires less upfront investment than an all-cash purchase.

Refinance – It allows a borrower to convert one HECM loan into another HECM loan, which is usually done to lock in a lower interest rate or to borrow more cash if the home has increased in value.

*Borrower must pay required taxes, insurance, or HOA if applicable.

To find out more about what type of reverse mortgage loans we offer, or if it is the right option for you, contact us.

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OTHER LOAN TYPES

Kent Mortgage Corporation offers a variety of home loans in Southern California to fit your specific financial situation. When you decide to buy or refinance a home in Southern California, you need a home loan company that you can actually trust. Our certified home loan consultants live and work in Southern California, so they truly understand local housing market financing and have helped complete loans up in value up to $5,000,000.

There are other types of loans that are less commonly known to the public yet can be made available to some clients on occasion. To find out more about what types of other loans we offer or that you qualify for, please contact us.

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