Loan Programs

Most simply stated, a conventional loan means a homebuyer's mortgage is not backed or insured by a government agency such as the Federal Housing Administration (FHA) or Veterans Administration (VA). Buyers can use a conventional mortgage to purchase a one- to four-unit home, a condominium, modular or manufactured home as a primary, secondary or investment property.

The down payment of a conventional purchase loan is generally higher than that of a government-insured loan, such as an FHA loan, which is 3.5%. Conventional borrowers generally must pay between 3% to 20% percent of a home's purchase price for a down payment. On a refinance, a conventional loan can have a loan-to-value (LTV) ratio as high as 95% with the addition of private mortgage insurance (PMI) or lender paid mortgage insurance (LPMI).

On a conventional loan, we will consider a buyer's debt-to-income (DTI) ratio, which is determined by calculating the projected housing costs and actual recurring monthly expenses. A buyer's home expenses include: monthly loan payment applied toward principal and interest, property taxes, mortgage and homeowners insurance in addition to all monthly expenditures, must not exceed 47% of the buyer's income.

A FICO credit score of 640 and higher increases a borrower's rate of approval and may reduce the loan's interest rate.

Borrowers who have filed a Chapter 7 bankruptcy case can apply for a conventional mortgage after four years from discharge date, and those who have been discharged from a Chapter 13 may apply two years after the re-establishment of an active credit profile.

The current market and the borrower's FICO credit score influence the interest rate received on a conventional loan. Conventional loan programs at a fixed rate, where the interest rate stays consistently the same throughout the term of the loan, or as an ARM, an adjustable-rate mortgage, where interest rates initiate at a below-market rate and change on a designated schedule, which ranges from monthly to annually or longer.

Conforming conventional loans have a maximum loan limit set by Fannie Mae at the county level. In the case of non-conforming loans, banks generally set the limit at 80 to 90 percent of the home's appraised value.

Contact us today at (812)962-4222 to get started or Apply Now!

The state or local government sells mortgage revenue bonds. The funds raised from this provide the funds for this second mortgage which assist in subsidizing costs associated with the mortgage loan under the Hardest Hit Fund.

When you purchase a home using a bond loan, the bond loan acts as a second mortgage. Eligibility, requirements and other details regarding this loan vary by county. If eligible, a bond loan is available on Conventional, VA and FHA loans. Eligible borrowers may receive up to $15,000 in some counties. Borrowers who have not owned property in the past 3 years may be eligible.

We are pleased to announce that we have lowered our minimum credit score standard on all FHA loan products. There are countless reasons why an FHA loan might be right for you, but here at Bank of England Mortgage, we believe that these four features are what really sets FHA loans apart.

Credit Flexible

FHA loans are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they're generally going to be credit-eligible for an FHA loan.

Great Rates and Low Monthly Mortgage Insurance

Two advantages of an FHA insured loan, as compared to a conforming loan, are great interest rates and lower monthly mortgage insurance (MI). Depending on the program, standard FHA loan interest rates are usually better than a conforming 30-Year Fixed loan.

Safest ARM Currently Available on the Market

FHA guidelines give you the option of doing hybrid Adjustable Rate Mortgages (ARM), including a 3/1 ARM and a one year ARM that has the lowest adjustment caps of any ARM in the industry.

Variety of Property Types Allowed

While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.

Streamlined Refinance and Assumable Loans

One of the most important advantages of an FHA loan is the ability for the loan to be assumed. This gives the buyer a significant advantage in a high interest rate market. FHA loans are eligible for streamlined refinance, a program HUD offers that allows the borrower to easily refinance the loan to reduce their interest rate and lower their monthly payment.

What are FHA loans?

FHA stands for Federal Housing Administration. A Federal Housing Administration loan provides low-cost insured home mortgage loans that suit a variety of purchasing options. Whether you're buying a home or want or refinance your mortgage, FHA loans might be right for you. If you're unsure about your credit rating, or have concerns about a down payment, our FHA loans can give you peace of mind with super low closing costs and flexible payment options.

How do I qualify for FHA loans?

To be eligible for Federal Housing Administration loans, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt. Call Bank of England Mortgage to discuss your FHA loan eligibility.

What is the cost of FHA home loans?

Interest rates on all home mortgage loans vary according to the economic climate of the country. FHA home loans offer better than standard rates and lower monthly mortgage insurance premiums. Depending on the program, standard FHA home loan interest rates are usually better than a conforming 30-year fixed loan. Call us today for more information on FHA loans.

Can I use FHA loans for home repairs?

Yes! Simple home improvements can be financed with a Federal Housing Administration loan from Bank of England Mortgage. Roof repair, disability accessibility improvements, flooring refurbishment, or the purchase of new appliances are just a few eligible improvements you could make with FHA loans. Ask our experts if your project qualifies for an FHA loan.

Are FHA loans assumable and can be refinanced?

Yes & yes! One of the greatest advantages of our FHA mortgage loans is the ability for the loan to be assumed. This allows the buyer a significant advantage in a high-interest rate market, and affords you an excellent sales advantage over your competition. FHA mortgage loans are also eligible for streamlined refinancing, offering you a lower than standard interest rate, which can lower your monthly payment. Streamlined FHA mortgage loans are an excellent selling feature when you're ready to move up or move on.

Renovation loans give you flexibility. Whether you are building, buying, or refinancing your home, a renovation loan allows you to add a room, remodel, and upgrade. Save by financing renovation costs into your mortgage rather than racking up credit card bills or dipping into your savings. With one loan, there's only one application, one set of fees, one closing and one monthly payment. Improvements may include repairs and renovations that adds value to your home, including a garage, swimming pool and energy-efficiency upgrades.

A reverse mortgage is a non-recourse loan, which means the borrower (or the borrower's estate) of a reverse mortgage will not owe more than the future loan balance or the value of the property, whichever is less. If the borrower or representatives of his or her estate choose to sell the property to pay off the reverse mortgage loan, no assets other than the home will be used to repay the debt. If the borrower or his or her estate wishes to retain the property, the balance of the loan must be paid in full.

Let Your Home Take Care of You with a Reverse Mortgage/ Home Equity

Conversion Mortgage Reverse mortgages were created specifically for senior homeowners, allowing them to make the most of the equity they have acquired in their homes.

With a reverse mortgage, you borrow against the equity you have established in your home and do not need to repay the loan for as long as you live in the home as your primary residence, maintain your home in good condition, and pay property taxes and insurance. You can live in your home and enjoy making no monthly principal and interest mortgage payments.

Depending on your financial situation, a reverse mortgage has the potential to help you stay in your home and still meet your financial obligations.

We realize that reverse mortgages may not be right for everyone, give us a call so we can help walk you through the process and answer any questions you may have.

Reverse Mortgages vs. Traditional Mortgage or Home Equity Loans

A reverse mortgage is the opposite of a traditional mortgage. With a traditional mortgage, you borrow money and make monthly principal and interest mortgage payments. With a reverse mortgage, however, you receive loan proceeds based on the value of your home, the age of the youngest borrower, and the interest rate of your loan. You do not make monthly principal and interest mortgage payments for as long as you live in, maintain your home in good condition, and pay property taxes and insurance. The loan must be repaid when you pass away, sell your home, or no longer live in the home as your primary residence.

Home Equity Conversion Mortgage (HECM)

A Home Equity Conversion Mortgage, or HECM, is the only reverse mortgage insured by the U.S. Federal Government, and is only available through an FHA-approved lender.

If you're age 62 or older, a Home Equity Conversion Mortgage (HECM) for Purchase from Bank of England Mortgage may be a smart choice for financing a new place to call home.

Rather than having to seek conventional financing, borrowers age 62 and older can purchase a new residence while eliminating mortgage payments* through a reverse mortgage (Of course, they’ll still be responsible for paying property taxes and required homeowners’ insurance). This may help them more comfortably afford an upgrade, or spend less money out-of-pocket. Retiring Boomers are choosing to maintain a comfortable lifestyle in a home that better fits their needs. You own the home, with your name on the title and the home purchase and a reverse mortgage closing are rolled into one, making your process simpler.

How Much Can Be Borrowed?

In general, the more your home is worth, the older you are, and the lower the interest rate, the more you will be able to borrow.

The maximum amount that can be borrowed on a particular loan program is based on these factors:

The age of the youngest borrower at the time of the loan
The appraised value of the home
Current interest rates

Initial Eligibility Requirements for Reverse Mortgages

The initial eligibility requirements are quite simple.

Homeowners must be 62 years of age or older and occupy the property as their primary residence
The property may be a Single family or a 2-4 Unit property, Townhome, or FHA-approved Condominium
The home must meet minimum FHA property standards
Borrower cannot be delinquent on any federal debt
Completion of HECM counseling

All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties. A reverse mortgage is a loan that must be repaid when the home is no longer the primary residence, is sold, or if the property taxes or insurance are not paid. This loan is not a government benefit. Borrower(s) must be 62 or older. The home must be maintained to meet FHA Standards, and you must continue to pay property taxes, insurance and property related fees or you will lose your home.

Here you'll find long-term mortgage insurance-free VA home loans that are guaranteed by the United States Veterans Administration.

Bank of England Mortgage offers affordable, easy-to-understand VA Home loans in recognition of the contributions and sacrifices veterans have made for America. Whether you're buying your first home, refinancing your existing mortgage, or thinking of building your one-of-a-kind dream house, Bank of England Mortgage is your ultimate Veteran's Affairs loans information center.

Bank of England Mortgage offers affordable, easy-to-understand VA Home loans in recognition of the contributions and sacrifices veterans have made for America. We'll compare VA home loan interest rates and negotiate the very best deal. We'll also explain important factors to consider, such as the option to prepay your VA mortgage loans without penalty, and how a lack of mortgage insurance premiums can lower your monthly payments. We can even show you how to get VA home loan funds to improve your home's energy efficiency! Did you know your VA benefits can be used again even if you used it in the past?

Our highly trained professionals make applying for VA loans online a breeze! At Bank of England Mortgage you'll discover super low fixed-rate interest options, up to 100% financing, and you may not even need a down payment! Call us now and let us help you find the perfect VA home loan to suit your individual needs.

We make qualifying for a large loan Straightforward, Fast, Easy. At Bank of England Mortgage, our specialty is funding the dream of homeownership - no matter the size of the loan or dream - for that matter.

Inquire today about jumbo loans

That's why we created our jumbo mortgage lending program - a full suite of offerings designed with the needs of borrowers that seek larger loan amounts than were available through traditional lending options.

It's as simple as it sounds. We call it a jumbo mortgage because it is larger than other more "typical" home mortgage loans.

Why would I need a jumbo mortgage loan?

If you are seeking a loan amount in excess of $647,200, then you need a jumbo mortgage loan. Each year, Fannie Mae and Freddie Mac , two government sponsored enterprises, set loan maximums. When loan amounts exceed their limits - the borrower is purchasing a jumbo mortgage loan.

How much money can I be qualified for with a jumbo mortgage?

Depending on the borrower's financial profile, you can qualify for $647,200 to $1,500,000.

What kind of credit score do I need to qualify for a jumbo mortgage?

That depends on the type of loan. Credit scores for jumbo mortgages are similar to conventional credit score requirements.

A 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.

A USDA home loan is different from a traditional mortgage offered in the United States in several ways:

USDA loans require no down payment, you may finance up to 100% of the property value.
You must meet the income restrictions for the County you are interested in. Each county has a maximum Income Requirement. The USDA Home Loan Program does allow for considerations for expenses like Child Care.
To be eligible, you must be purchasing a property in a rural area as defined by the USDA. Often times the eligible property is just outside city limits.
The home or property that you are looking to purchase must be owner-occupied, investment properties are not eligible for USDA loans.
Refinancing your current USDA loan is also available.

Types of USDA Loan

Guaranteed Loan

Applicants for home loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories. Additionally, the property must be located within the USDA RD Home Loan "footprint."

Approved lenders under the Single Family Housing Guaranteed Loan program include:
Any State housing agency; Lenders approved by: HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities; the U.S. Veterans Administration as a qualified mortgagee; Fannie Mae for participation in family mortgage loans; Freddie Mac for participation in family mortgage loans; Any FCS (Farm Credit System) institution with direct lending authority; Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.

Direct USDA Loan

USDA funds the borrowers of these loans directly. In other words, your lender becomes USDA instead of a bank. These loans usually favor low-income and very-low-income Americans who can’t access any other type of financing for an adequate residence. Qualifying borrowers’ income must fall at or below the low-income limit in a designated area as defined by USDA. In some areas, the limit falls below $17,000.

USDA Home Improvement Loans

These loans help low-income Americans repair or enhance their homes. Depending on your circumstances, USDA may combine these with grants you don’t have to pay back.