Loan Programs

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Loan Programs

Pinnacle Capital Mortgage is a direct lender with local underwriters. We offer the following loan programs to serve the diverse needs of our clients.

Conventional Loans

Conventional loans are the most popular loans in the U.S. They typically requires 5-10% down, a 620 credit score or higher, and a debt-to-income ratio of 45%.

Conventional loans are loans that are sold to Fannie Mae or Freddie Mac. These loan amounts go to $417,000 across the country and up to $625,500 in high cost areas. Conventional loans often represent the lower rates and great terms available in the market, as long as a borrower can meet the guidelines.

Government Loans

FHA and VA are the two largest types of mortgage loans that are backed by the federal government.

FHA loans are typically more useful for people with lower down payments and/or lower credit scores. They are the second most popular loan in the U.S. behind conventional conforming loans.

VA loans are made by the Veterans Administration for veterans of our armed forces. These loans come with special protections and benefits. VA loans don’t require a down payment in most cases and there is no monthly PMI.

Jumbo Loans

Jumbo loans are simply loans that are too large to be considered purchasable by Fannie Mae or Freddie Mac.

They typically require 20%+ down (although there are exceptions for as little as 10% down), and the interest rates are usually about .25% – .50% higher than comparable non-jumbo loans.

No Cost Mortgage

A no cost (or “no point, no fee”) mortgage is the most common way to refinance in today’s market.

Here’s how it works. Every refinance transaction has real costs associated with it. These costs include title, escrow, credit report, notary, appraisal, etc. The question is: Who pays for these costs? The real answer is that the borrower always pays these costs, either directly at closing or through a slightly higher interest rate on their loan.

Let’s see an example: $300,000 Loan Amount

= All fees add up to $3,000

Rates for that day:
4.250% 4.25% APR (1.00) credit, 
4.125% /4.166% APR (.500) credit
, 4.000%/ 4.083%APR 0.00 <—”par” rate
 3.875%/4.041%APR 1.00 Discount points

If the borrower chose the 4.000/4.083%APR par rate, then they would have to pay the $3,000 in closing fees. If they chose the 3.875/4.041%APR discounted rate, they would pay the $3,000 plus 1.00% of the loan amount in exchange for the below-market rate. If they didn’t want to pay points OR fees, then they would choose the 4.250%/ 4.25% APR rate, which would give them a 1.000% credit of $3,000 to offset the $3,000 in fees.

A great place to start is a free, no-obligation consultation. We’ll be able to tell you in a few minutes which choices might work great for you. We can also quickly pre-approve you free of charge. To schedule your consultation, call us today for immediate assistance.