Loan Programs

The following is a partial list of programs offered by First Colony Mortgage Corporation with a brief description of the key elements of each. For a complete list of the programs that we offer, please contact us at 801-226-7456.

Loan Programs Mortgages come in many different shapes and sizes depending on what type of property you are buying, what repayment terms you desire, what your credit looks like, etc. Which loan makes the most sense for you depends on how long you anticipate remaining in the home, how much money you have for a down payment, and the monthly payment you can afford.

Conventional Conforming Loan This is a traditional mortgage of up to $417,000 requiring a 5% down payment. It is usually for a term of 15, 20, or 30 years. Traditional guidelines for approving this loan allow you to have a total debt ratio (house payment & total monthly debt payments) equal to 36%* of your gross monthly income. This loan also requires MI until your loan to value ratio is 80% or less (until you have 20% equity in your home). This loan is good for people who have at least 5% to put down and who want to be able to cancel their MI down the road. Requires 5% down Debt-to-income ratio as high as 36% Requires monthly mortgage insurance (MI) Loans up to $417,000   FHA Loan This is a HUD or government insured loan that allows you to buy a home for only 3% down. It does, however, requires both an up-front MI payment of 1.5% of the loan amount and monthly MI payments of .5% of the loan amount (paid as part of your monthly mortgage payment). HUD allows the total debt ratio to be as high as 41%. HUD has maximum loan limits for each county which are significantly lower than conventional limits (Utah county’s limit is $232,300). HUD requires 5 years of mortgage insurance after which it can be dropped when the loan-to-value of the home reaches 78%. An FHA loan is excellent for someone who has less money to put down, and someone who has more debt or whose credit is not quite as good. Only 3% down! Debt-to-income ratio as high as 41%* Requires 1.5% up-front mortgage insurance (financed) Requires .5% monthly mortgage insurance (MI) Maximum loan limits vary by county MI can be cancelled after 5 years and loan-to-value=78% Allows for no cost/no qualifying refinance if interest rates go down   No Cost FHA/VA Refinance Through this program, you are allowed to refinance to a lower interest rate without having to re-qualify for the mortgage. This means there are no income verifications, no questions about your debt, no appraisals, and no costs to you! We’re only required to verify that you’ve made your monthly mortgage payment on time for the last 6 to 12 months. Call First Colony Mortgage today for more details.   VA Loans This is a Veterans Administration insured loan available to Veterans of the Armed Forces. It allows for 103% financing so a veteran can buy a home for no money down and finance the closing costs. The VA charges a funding fee that varies based on whether or not this is you first time getting a VA mortgage. First Colony Mortgage has Direct Underwriting authority allowing us to underwrite and approve VA loans in-house, reducing the time it takes to get you into your new home. Requires $0 down Can finance up to 103% of the value of the home - Allows closing costs to be financed Debt to income ratio as high as 41% Only available to Veterans of the Armed Forces VA Funding fee charged No monthly Mortgage Insurance charged Allows for no cost/no qualifying refinance if rates go down   Adjustable Rate Mortgages (ARMs) Adjustable Rate Mortgages (ARMs) usually start out at a lower interest rate than the going market rates for a 30 year fixed rate loan. The initial rate remains fixed for a set period of time (1, 3, 5, 7, or 10 years) afterwhich the rate can adjust up or down annually, based on the index the rate is tied to. The amount the interest can increase or decrease is usually "capped" at a maximum of 1% or 2% per year and 5% or 6% over the life of the loan, depending on the loan program. When qualifying for a 1 yr. or 3 yr. ARM, you must qualify at the maximum rate you could have the second year of the mortgage. With 5, 7, or 10 yr. ARMs, you qualify based on the initial rate. You may consider getting an ARM when the 30 yr. fixed rates are high but you expect them to go down within a few years (when you could then refinance to a lower fixed rate loan), or when you only anticipate being in the home a few years and selling before the rate begins to adjust annually. Initial lower rate for a period of 1, 3, 5, 7 or 10 years rate adjusts annually based on a particular index after introductory period Conventional, FHA & VA ARMs available Easier to qualify at the introductory rate (1 & 3 yr ARMs, qualify at the 2nd year rate) Consider using an ARM when interest rates are high or when you do not plan to be in the home longer than the initial rate period   Less Than Perfect Credit At First Colony Mortgage, If you can have "less than perfect" credit, we can help! We offer programs for purchase or refinancing of all types of credit (A - D). Slow payments, collections, charge-offs, tax liens, judgements, foreclosures, and even bankruptcy can often be handled successfully but will usually carry a higher interest rate and require a larger down payment. If you have experienced credit difficulties in the past, we can help.