First Class Mortgage

First-time homebuyer with a lower credit score? Strong credit score with significant debt? Applying for an FHA loan might be your best bet! Insured by the Federal Housing Administration (FHA), FHA loans offer low interest rates, affordable down payments and reasonable closing costs. While new FHA loans entail mortgage insurance throughout the loan’s lifetime, they can provide flexible credit qualifying standards for those purchasing principal residences. With a high debt-to-income ratio, the FHA gives home buyers the added option of qualifying for larger loans in the future. When it comes down to brass tacks, the purpose of the FHA is to encourage home ownership by insuring mortgage loans made by First Class Mortgage’s network of approved FHA lenders. The FHA leverages risk and promotes favorable loan terms by government-backed repayment of approved lenders in the event of a borrower default. First Class Mortgage FHA loan features include: - 15, 20, 25 and 30-year fixed-rate amortization terms - Credit scores as low as 600 can qualify - Available in a variety of fixed-rate and adjustable-rate loan options - Initial down payments as low as 3.5% of the home’s purchase price - May allow you to use a gift or grant for all or a portion of the down payment or closing costs - Maximum mortgage limits vary by state and country. Contact to find out what your area limits are. Want to learn more about First Class Mortgage and our FHA Loan Program? Contact us today to get the ball rolling.

From honorably discharged veterans to active duty personnel, we are proud to offer a wide variety of home financing assistance to U.S. service members and their families. Guaranteed by the U.S. Department of Veteran Affairs, VA loans have helped nearly 30 million eligible veterans and active service personnel finance a home. VA loan benefits include: - No down payment - Potential for 100% refinancing - No Private Mortgage Insurance (PMI) payments - Seller can pay closing costs - Low credit scores can qualify - No pre-payment penalties For more information on VA loan qualifications and benefits, Contact First Class Mortgage today.

Do you have an excellent credit rating, a steady income and some money saved up? Your mortgage consultant may recommend a conventional home loan. The most common type of mortgage program, conventional loans are not insured by the federal government but typically offer better interest rates, terms of service and lower fees than other loan options. A conventional mortgage for a first-time home buyer typically requires a good-to-excellent credit rating, a substantial down payment and reasonable amounts of monthly debt obligations. Say goodbye to Private Mortgage Insurance! Unlike FHA loans, conventional loans allow buyers to opt for a larger down payment in exchange for reduced Private Mortgage Insurance (PMI). If you can afford a down payment of 20% or more, you will not be required to carry PMI on your loan. Can’t afford 20% down? Mortgage insurance can be dropped after 20% of the loan has been paid. Conventional loans are a great option for a wide variety of borrowers and offer down payments as low as 3% depending on your financial situation. First Class Mortgage provides two main varieties of Conventional Loans. Fixed-Rate Mortgage: A traditional 30-year Fixed Rate Mortgage features full amortization and is ideal for borrowers looking to put down roots and commit themselves to the community. A 15-year Fixed Rate Mortgage offers the same amortization with a lower interest rate, but the accelerated timeline entails higher monthly payments. Adjustable Rate Mortgage (ARM): On the flip side, an Adjustable Rate Mortgage (ARM) is tailored for less-committed borrowers. ARMs generally offer a lower interest rate for the first 5-10 years of a loan before adjusting to a new rate every 12 months. The low interest rates cater to borrowers who don’t plan on sticking around too long or who plan to pay more each month for a quicker amortization. Hybrid ARMs offer fixed rates for 3-7 years and adjustable rates for the remainder of a 30-year loan. These loans generally feature lower interest rates than their fixed-rate cousins and can be the best choice for people expecting to move or refinance before or shortly after the adjustment. With close to 100% loan-to-value ratios and a wide range of options for your specific situation, a conventional loan brokered by First Class Mortgage is a no-brainer! From Minnesota, North Dakota and beyond, our consultants work with a vast network of lenders to secure the perfect conventional loan for you. Contact us today to learn more.

When a loan amount reaches a certain point, Jumbo Loans can offer high-end financing that a traditional loan can’t. First Class Mortgage provides jumbo loans for single-unit properties that exceed $453,100 in Minnesota, North Dakota and beyond. We offer 15- and 30-year fixed rate mortgages as well as ARMs with affordable interest rates and down payments. While jumbo loans vary from lender to lender, loan amounts higher than $1.5 million usually mean loan-to-value (LTV) percentages lower than 90%. With a jumbo mortgage, you’ll get great rates for your big loan. With a choice between fixed or adjustable rates, our jumbo loans offer maximum flexibility for home financing for larger loans. Contact First Class Mortgage today to learn more about our Jumbo Loan Program!

Rather than paying rent to support your landlord, your monthly mortgage payments go toward you and your future. You can deduct the cost of your mortgage loan interest from your federal income taxes, as well as your homeowner property taxes. In this society of rapidly rising rent, buying a home is a wise long-term investment. As an added bonus, you might be able to sell your home for more than you paid for it! At First Class Mortgage, we usually recommend FHA, VA or conventional loans for first-time homebuyers. Not sure which program is right for you? Contact us today! Our consultants at First Class Mortgage will ensure this life-changing transaction is quick, hassle-free and cost-effective. We will find you the perfect loan for the perfect home. Contact us today to get this party started!

From small towns to emerging neighborhoods on city outskirts, a USDA Loan provides many benefits to rural property owners. Insured by the U.S. Department of Agriculture, First Class Mortgage is proud to offer USDA mortgage loans to home buyers and refinancers in eligible areas. USDA Loan benefits include: - No down payment - Low fixed-rate mortgage options - Flexible credit requirements - No loan or acreage limit - 100% financing and refinancing for qualified borrowers - Can be used for home repairs and add-ons USDA Loans are not just for farm properties. Many communities just outside large metropolitan areas are defined as “rural” by the USDA and qualify for this mortgage loan. Whether you’re looking to move away from the city or refinance your rural residence, the USDA Loan Program is designed to improve the economy and quality of life in rural America. Click here for USDA Rural Development Eligibility (on this page click "Single Family Housing" under "Property Eligibility") Still not sure if you or the property you are purchasing qualify? Contact First Class Mortgage to find out!

The hard work is done — you found and bought a home. Now it has been a few years, and you are looking to upgrade your home loan by refinancing. You may be looking to cut your monthly payment down, change the length of your loan, cash out some of your home equity for a remodel or to consolidate debt. A refinance allows you to switch into a new loan that could help you achieve one or more of those goals. By comparing rates and terms from multiple lenders, First Class Mortgage can help you save thousands of dollars in interest over the life of the loan—perhaps pay off your mortgage sooner—or, reduce your monthly payment. Common Refinancing Goals: - Lower your monthly payment - Reduce your interest rate - Pay off your mortgage earlier - Remove mortgage insurance - Convert to a fixed-rate mortgage - Pay off debt Is it the right time for you to consider mortgage refinancing? Learn more about if and when it is the right decision for your home's financing. Traditional Refinance If you want to make your payments more comfortable and your home value is steady or has increased, you may be able to refinance your mortgage with a traditional refinance loan. You’ll go through an application, approval and closing process, similar to when you got your original mortgage. Traditional loans are backed by Fannie Mae or Freddie Mac, and they are generally the lowest-cost refinance loans. Home Affordable Refinance Program (HARP) The government’s Home Affordable Refinance Program (HARP) has been expanded to help more homeowners qualify for refinancing their mortgage. Even those with little or no equity available may take advantage of low interest rates, and other refinancing benefits. For more information on this program, contact us to see if you qualify. Cash-out Refinance A cash-out refinance pays off your current mortgage and uses your home equity to provide additional money for other uses. To decide if cash-out refinancing is right for you, first weigh the benefit of how you’ll use the money against the amount of time it takes to pay off the loan. Ready to get your refinance started? Fill out an application today.