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Conventional
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Conventional loans are mortgages that are not covered by any government program of insurance or guarantee. The maximum conventional loan amount is $1,000,000.
Downpayments typically range from 5% to 20%, but certain programs allow as little as 3% down. 100% financing may be possible under special circumstances. Loans with less than 20% down require mortgage insurance.
Conventional loans may also be used for refinancing and to purchase second homes or rental properties.
Borrowers may choose either a fixed or adjustable rate (ARM) loan. |
Adjustable Rate Mortgage
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| An Adjustable Rate Mortgage (ARM) features a variable interest rate, which is periodically adjusted, based on the change in a financial index such as One Year Treasuries, plus a margin that is established at origination. Interest rate changes are limited or capped at each adjustment and for the life of the loan. ARMs may provide the security, flexibility and affordability prospective home buyers desire. These loans are especially attractive to home buyers who plan to trade up in future years. Generally, initial interest rates are lower than fixed rate mortgages. |
Rural Housing
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| The U.S. Department of Agriculture’s Rural Development Guaranteed Loan is ideal for first-time home buyers who have limited funds to invest. 100% financing may be available and in many cases your closing costs, 2 point origination fee, and appraisal fee can be included in the loan. There is no maximum loan limit, however, potential borrowers income must not exceed published guidelines. The interest rate is fixed and is competitively priced. |
Soft Second
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Southbridge Savings Bank is a participating lender with the Department of Housing and Community Development and the Massachusetts Housing Partnership. If you’re a first-time homebuyer, you’ve come to the right place. The Soft Second Loan Program makes affordable home ownership possible. It can save you up to $30,000 over the life of your loan, whether you’re trying to buy a condominium, a one, two or three-family home.
* Low Interest Rates: range from 1/2% to as much as 2 1/4% below market rate.
* Low Down Payment:Only 3% of the purchase price. Some of that can even be a gift or grant.
* No Points: "Points" are fees banks ask buyers to pay when they buy. One point equals 1% of the loan. We do not charge points for Soft Second loans. Not paying points will save buyers $3,000 to $7,000.
* Reduced Closing Costs: Closing cost assistance is available in many communities.
* No Mortgage Insurance Fees: The state has set up an insurance fund for these loans that will save buyers $35 to $70 per month.
* Purchase & Rehab Option: Banks may allow you to include the costs of de-leading and other repairs in your Soft Second Mortgage so you can fix up your new home before you move in.
* Pro Bono Legal Assistance: The state has arranged for attorneys to represent buyers through their purchase process for free.
* Homebuyers Support: Pre and Post-purchase educational courses are designed to help homebuyers purchase and keep their home and keep up with payments.
For more information, please visit the following website: http://www.mhp.net/homeownership/softsecond.php
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