Fixed Rate Mortgages:
Fixed rate mortgages are loans where the interest rate for your mortgage stays the same for the entire term of the loan. Fixed rate construction mortgages are available in either a 15, 20 or 30 year term. Generally, the longer the term of the loan, the higher the interest rate. Fixed rate mortgages are great loans for clients who anticipate staying in their home for a longer period of time. With a fixed rate mortgage, your interest rate and principal and interest payment will never change. With our fixed rate construction loans you have 4, 6, 8 or 12 months to complete your home depending on the option you select. All construction loans typically require a minimum down payment of 5%.
Adjustable Rate Mortgages (ARM):
Adjustable rate mortgages are loans where the interest rate on your mortgage is subject to change at some point during your loan term. Adjustable rate loans are available with repayment terms of 30 years. However, the interest rate on your loan may only be fixed for a period of 1,3,5 or 7 years – depending on the option you choose. For clients who will be staying in their home for a shorter period of time, an adjustable rate may offer a lower payment and interest rate. An ARM may also benefit you if fixed rates are higher and you anticipate mortgage rates to drop within the next couple of years. This allows you to keep your payment reasonable while you wait for fixed rates to decrease. With our adjustable rate construction loans, you have 12 months to complete your home. Adjustable rate construction loans typically require a minimum down payment of 5 – 10% depending on the option selected.
Executive (Jumbo) Mortgages:
Executive loans are mortgage loans in excess of $417,000. These loans typically range from $417,001 to $2 million dollars. Executive/Jumbo construction loans can vary significantly from lender to lender. We are pleased to be a leading provider of executive mortgages. Because we are a bank, First Place is able to hold in our investment portfolio several large executive mortgages at extremely competitive rates. We offer executive mortgages under our fixed and adjustable rate products. Our executive/jumbo construction loan programs allow for up to 12 months to complete your home. Jumbo loans require a minimum down payment of 20% in most cases. Larger loan amounts may require a larger down payment.
Lot – Vacant Land Mortgages:
At First Place Bank, we are one of the most aggressive lenders for lots and vacant land. Most of our land loan programs require a down payment of 25%. Lot and land loans have a repayment term of 30 years, with your rate being fixed for the first 5 years. If you have not started construction on your home within 5 years, there is a balloon payment on your land loan and you would either be required to pay the loan in full or refinance at then prevailing rates and terms.
Bridge (Swing) Mortgages:
These mortgage options are used when you currently own a home and need to close on the construction loan for your new home before you close on the sale of your current home. Our bridge loan options may allow you to borrow up to 80% of your current home’s value for your down payment on your new home. Best of all their flexible payment options allow you to make interest only payments monthly, quarterly or at maturity – depending on the option you choose. First Place Bank is one of very few lenders who even still offer this option.
NO PMI Options:
We are pleased to offer mortgage options that allow for NO PMI (Private Mortgage Insurance). These options are available on our fixed, adjustable and executive mortgage programs. NO PMI options are available with loans that require anywhere from 10% to 15% down. Eliminating PMI insurance may save you a substantial amount on your monthly payment and may save you thousands of dollars over the term of your loan. Contact our office to find out what options may be available to you.
Special Programs:
We are pleased to offer special construction loan programs for clients who desire to build a home that may have a more unique financial situation. Here is a sample of some of our special programs:
- NO Debt Ratio Loans (Income still verified but no debt ratio is calculated in order to qualify)
- Self Employed less than 2 years
- Unique Property Programs
- Common Sense Programs
