Fixed-Rate Mortgages
Good for anyone

With theses type of loans, the interest rate and your mortgage payments remain "fixed" for the period of the loan. They are available at wholesale lending rates to people who qualify. Fixed-rate mortgages are available for 40, 30, 25, 20, 15, and 10 years, with 30 and 15 years being the most popular. Generally the shorter the term of the loan, the lower the interest rate you could get. Your monthly payments are typically lower with a 30-year fixed rate, but 15-year fixed rate mortgages allow you to pay your loan twice as fast and can save you a considerable amount of total interest over the term of the loan.

Middlestead Mortgage can offer some exciting options with a conventional fixed-rate loan. We can consolidate debt to lower monthly payments, provide second or home equity lines of credit (HELOCs), help the first-time home buyer find their dream home, cover investment properties, and even help purchase a second home. Self-employed borrowers can qualify for the same low rates, provided their credit rating is solid and they have been self-employed for a minimum of two years.

Adjustable Rate Mortgages
Best for the short-term homeowner wanting to lower payment

Variable or adjustable rate loans are loans whose interest rate and resulting monthly payments fluctuate over the period of the loan. They offer a convenient way to lower monthly payments. Clients typically interested in ARMs are looking to have a lower interest rate for a short period of time because they know that their financial circumstances will improve with time, allowing them more home now without the burden of a higher fixedrate loan; or because they wish to pay ahead on the principal to accelerate the reduction of the balance; or because they plan to own the property only for a short period of time.

Most ARMs have interest rate caps to protect you from enormous increases in monthly payments. A lifetime cap limits the interest rate increase over the life of the loan. A periodic or adjustment cap limits how much your interest rate can rise at one time.

Middlestead Mortgage offers several options at wholesale rates, including 1-, 3-, 5-, 7- and 10-year ARMs, as well as Flex Saver ARMs and Pay Option ARMs.

FlexSaver ARMs
First-lien home equity line of credit for those wanting better management over monthly expenditures, the self-employed,or others with irregular incomes

TheFlexSaver ARM, introduced by Countrywide Home Loans, Inc., gives home buyers flexible payment options by using Home Equity Line of Credit HELOC) as a First Mortgage. The loan can be used to purchase a new home or refinance an existing home (dependent on state restrictions). It gives the borrower more flexibility and control over their monthly payments. The pricing is very attractive and terms include a lower lifetime cap than most traditional home equity lines of credit. TheFlexSaver ARM loans are tied directly to the prime index. However, the rates can be below prime for qualified home buyers who give a down payment of 20% or more. The program is also available to qualified homeowners looking to refinance their owner-occupied primary residence. Other advantages include flexible qualify requirements for self-employed borrowers and others who choose to provide alternative or reduced documentation during the application process, and available loan amounts to $1 million, dependent on property type and credit worthiness.

There are three payment options with the FlexSaver ARM: (1) Use the loan's credit balance if the available credit balance on the loan is greater than or equal to the payment due; (2) Pay the minimum balance due; or (3) pay full principal and interest amount which frees up available credit and reduces future payments and interest charges.

The FlexSaver ARM enables borrowers to build their available credit balance, creating a pool of funds that can be used to draw from their home's equity should they need access to cash for things like college tuition, debt consolidation, or remodeling.

WHEDA Loans
Good for the first-time home buyer with low to moderate incomes

The WHEDA (Wisconsin Housing and Economic Development) home loan program offers long-term, below-market, fixed-rate financing for low- and moderate-income firsttime home buyers. The attractive fixed-rates come with capped closing costs which allows the cost of processing the loan and the interest rates to be pre-set. Turnaround time for loan approval is usually very quick. You can have up to a 30-year term with a low downpayment (down payment assistance may also be available). The program offers lower mortgage insurance premiums, job loss protection, and a network of resources to access credit repair assistance and home buyer education.

A borrower is not eligible if they have had an ownership interest in a principal residence during the past three years, unless they are a military veteran; the property being purchased is in a target area (designated by the federal government as places where homeownership is desired); or the property being purchased will be the subject of a qualified major rehabilitation. Property eligibility includes new or existing single family detached dwellings; condominiums; two, three, or four units which are at least five years old; or newly constructed two units located in a target area. The borrower must occupy the property as their principal residence within 60 days after closing and the property must remain owner occupied throughout the life of the loan.

Fast and Easy Program
Good for those with excellent credit or who are self-employed

This exciting program, developed by Countrywide Home Loans, Inc.was originally designed for the self-employed, but can be used by any buyer, even retired and commissioned employees. It is a fast-closing loan with zero income verification and regular conforming rates.

With only a 5% down payment for borrowers with excellent credit, this loan program allows for minimal paperwork and documentation normally required in the loan process. It is available on loan amounts up to $2 million for primary residence only. Second home properties are also allowed up to $650,000 with 10% down. The loan value must be 90% of the purchase price or appraised value, with up to a 75% "cash out".

Pay Option ARMs
Good for those wanting a low payment cash flow on the purchase of investment property

This particular loan doesn't require a set payment each month. Instead, after your first initial payment, you will receive a monthly statement. On the statement you will have the choice of choosing which option you would like to use for that month: 15-year amortized payment; 30-year amortized payment; a variable interest only payment; or a fixed, negative amortization payment. The amortization options can lead to a quicker loan payoff .

This is a perfect option for investment properties that need immediate cash flow, who'd like to own their property only for a short time, and who prefer affordability and flexibility in monthly payments. Pay Option ARMs typically have a low introductory start rate allowing you to make very low initial mortgage payments and low qualifying rates enabling you to qualify for more home. Be aware that if you opt for the minimum payment option initially, you should be prepared for a possible increase ("payment shock") in your monthly payments afterwards. Also note that the initial interest rate holds only for the 1st month.

Interest Only Loans
Good for those seeking a low payment and control over principal reduction

Interest only payment options can apply to fixed-rate mortgages, adjustable rate mortgages, or option ARMs. As the name implies, you are able to pay only the interest portion of your monthly payment for a fixed period (usually three, five, seven, or ten years). At the end of the period your loan becomes fully amortized resulting in greatly increased monthly payments. The longer the interest only period, the larger the new payment will be when the interest only period ends. This type of loan requires some forethought. Can you count on your income to climb through earnings and are you committed to applying those earnings toward the principal? Will the increase in your earnings be enough to cover the forthcoming higher payments? Will the house you're considering drastically increase in value? Do you already have a significant amount of equity in your home? If so, this could be a very good program for you.

The program has several advantages. It allows you to pay small, interest only payments for a set time. For anyone with a well thought out financial strategy and temporary income limitations you can get more home now for lower monthly payments. The program also works well for those looking for the tax deductible benefits of a home mortgage- the entire monthly payment qualifies as tax-deductible interest during the interest only period. You can also make investments with the payment difference to potentially build your net worth.

Manufactured Housing Loans
Good for those buying manufactured homes for owned land parcels or home communities

The term "manufactured home" was adopted in 1980 by the the United States Congress to describe a type of house that is constructed in a factory to comply with a building code developed by the Department of Housing and Urban Development (HUD). In the past, manufactured homes were called "mobile homes," a term that many people still use. However, "mobile" is no longer an accurate name because fewer than five percent of such homes are ever moved off the owner's original site. Please note mobile homes and double-wides are considered manufactured homes, as opposed to modular homes which are considered "stick built".

Middlestead Mortgage offers construction loans involving land/home purchase for the Modular Home market. Our experience in this area has allowed us to make people's dreams of owning their own manufactured home on their own parcel of land a reality. The term for this type of loan is 30 years with a maximum amount of $333,700.

All manufactured homes must contain a manufacturer's certification (red label) that the home is built in accordance with HUD's construction and safety standards. If you plan to place the manufactured home on land that you own, please check your local regulations and restrictions before you buy. Whether it is a modular home or a manufactured home, we have great programs available.

New Construction Loans
Good for those building a new home on a land parcel

Middlestead Mortgage offers a number of options when it comes to construction loans, including a land/home purchase for non-client owned properties. A new construction loan can have an interest only payment up to 9 months. During the construction period, the client will be responsible for paying only the interest on the portion of money that is currently being used.

For example: Assume the construction project will cost $200,000 including a land parcel for $25,000. With the first initial signing of the paperwork the client will need to "draw" $60,000. This will cover the land purchase, a small downpayment for the general contractor in order to begin construction, and any fees associated with the construction loan. The client then is responsible to pay interest only on the $60,000 being used (not the full $200,000 approved). As each "draw" is taken, the portion of the $200,000 being used will increase and so the interest only payment will increase accordingly.

Middlestead Mortgage uses the appraised value of the home, not the purchase price or acquisition cost. To avoid private mortgage insurance (PMI) on the mortgage you need to have a loan-to-value of 80% or less. The appraised value of the property should ideally be more than the sum of the land costs and construction costs. If you've invested $50,000 on $245,000 in costs and the home appraises at $245,000 or more, then you've made the 80% loan-to-value target.

If you have a current home, you can apply the home equity toward the construction of a new home. If you don't plan on selling your existing home until the new home is completed you can still use the equity by either taking out a home equity loan or a" bridge" loan. It all depends on closing costs and rates. Either loan will eventually be paid off from the proceeds on the sale of your current home. You won't get 100% of your equity, but you will have be able to offer a much larger downpayment.

Less-Than-Perfect-Credit Loans
Good for individuals who have had unfortunate credit problems

If you've had a hard time obtaining a home loan because of credit problems, there's still hope for you to get into your dream home or refinance your existing home with a Less- Than-Perfect-Credit loan. These loans are designed for individuals who may be having financial difficulties and who can afford little or no downpayment, have little or no credit, have high debt-to-income ratios, or have experienced bankruptcies which are twoyears old or less. The programs require little or no downpayment, reduced documentation, and an excellent opportunity to reestablish your credit scores by making payments on time.

When Middlestead Mortgage looks at your loan needs, we look beyond your financial situation. We realize that there is a lot more to consider than just your credit history when making a decision on a loan. Just because you've had some credit problems in the past doesn't mean you'll have them in the future. We know how important it is for you to find a good home and we'll do our best to find the right program for you. Contact us for more information.

Federal Housing Administration Loans (FHA)
Good for first-time home buyers with lower to moderate incomes

The Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD), has various loan programs available to support home buyers by underwriting homeownership. It helps first-time home buyers and those individuals who have difficulty meeting downpayment requirements. FHA does this by providing mortgage insurance to private lenders. Anyone who has a satisfactory credit record, enough cash to close a loan, and sufficient steady income to make monthly mortgage payments is eligible.

Interest rates on FHA loans are generally market rates and 30-year fixed-rates are available. Downpayment requirements are generally lower than conventional loans-sometimes as low as 3%-and closing costs can be included into the mortgage. Loans are available in urban and rural areas for single family homes; 2-unit, 3-unit, and 4-unit properties; and for condominiums. FHA loans cannot exceed the statutory limits of the state or county in which the home resides. PMI (Private Mortgage Insurance) is required on all FHA loans.

Veterans Administration Loans (VA)
Good for US veterans

The VA loan is an excellent program designed for purchase or refinance. They are guaranteed by the U.S. Department of Veteran Affairs, which allows veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. Loans are typically limited to a maximum of $203,000. The VA determines your eligibility and if you are qualified, but it does not make loans. It guarantees loans made by lenders.