Loan Programs

Which loan program is best for me?

When working with your mortgage broker, you'll determine an affordable monthly payment, the area you want to buy as well as the amount of your down payment. The answers to these questions will determine which loan programs are the best option for you.

Here at Phoenix Star Mortgage, we approach loan programs differently. The truth is, all mortgage brokers have access to all of the same loan programs. The only difference between one broker and another is their level of service and how they use those programs to your advantage. Since we specialize in helping first-time homebuyers, we focus on two unique programs; USDA and Renovation Loans.

Renovation Loans

We often hear our clients express frustration that they're quickly getting priced out of the market. Values are going up, and they are afraid homes will no longer be affordable once they're ready to buy. The solution to this problem is the Renovation Loan. A Renovation Loan is a Conventional program that allows you to purchase a home and finance in funds to renovate it at the same time.

Here's how using this creative program can help first-time homebuyers beat the rising prices of the current real estate market:

  • Instead of shopping for high-priced homes, ask your realtor to show you a list of houses that are listed below 150k, or indicate that the seller will accept cash only.
  • Using these criteria, the homes that will appear on your list will require some repairs, or, some remodeling.
  • When you carefully review your list, you'll quickly notice that these homes are diamonds in the rough. And, they're the perfect opportunity to add your personal touches and unique design style. That is something you can't do with newer homes!
  • Choose the home that, after remodeling is complete, matches your vision of what you always thought your first home would look like.
  • Your finished home is perfect for you, and your contractor has completed it to your exact specifications. Because you purchased a lower-priced home, you have a nice low mortgage payment!

Using a Renovation Loan allows you to have more house for less money, and the best part is; you've remodeled it precisely the way you want it!

USDA Loans

It's a well-known fact that Veterans can buy a home with no money down. But, what are your options if you're not a Veteran? Some mortgage brokers will say that the answer to that question is Down Payment Assistance programs. We disagree. Down Payment Assistance Programs are dangerous, costly, and completely unnecessary. We strongly advise against them and don't believe they're the proper choice, especially for first-time buyers.

If you're not a Veteran, the proper way to buy a home with zero down payment is to utilize the USDA loan program. With USDA financing, you'll get one loan for 100% of the purchase price. Here are just a few of the benefits of USDA financing:

  • Most counties in Florida have USDA eligible areas. Eligible areas are quiet and outside city limits, often coming with a bit of land
  • Affordable low-interest rates, guidelines are lenient, and the program only requires a 640 credit score
  • Eligible properties are easy to find using a simple online lookup tool. Enter the address of the home you like into the easy Lookup Tool, and the results will tell you if the house is USDA eligible. Click here to Click here to search for USDA homes >
  • USDA loans do not take additional time to close and, you can obtain full loan approval before shopping for a home
  • The program allows credits from the Seller to help pay for your closing costs. If you set this up correctly, you end up coming to closing with no money at all.

USDA loans are a fantastic program, especially for first-time homebuyers. Stay away from risky down payment programs and use this simple program instead.

Both the Renovation and the USDA loan programs are available everywhere, but unfortunately, most mortgage brokers shy away from them. As such, you're not likely going to be given these fantastic loan options if you go elsewhere.

Phoenix Star Mortgage believes that to best assist our clients, we need to make sure they have ALL available options presented to them. In addition to the two creative programs mentioned above, we also have VA loans, FHA loans, Conventional loans, and Hard Money loans for investors.

To check out your options, Apply Now to submit your credit application.

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