Academy Mortgage Corporation

 

Looking for a mortgage? We Can Help!

Star Choice Credit Union has partnered with Academy Mortgage Corporation to provide you the best mortgage options possible. Whether you are a first time home buyer or an experienced buyer, we are here to help get you started on a new mortgage. Contact us today for more information.

 

Comparison of Common Loan Programs

Our teams at Academy Mortgage are often asked to explain the differences between the most common loan programs. To help answer your questions, the following grid outlines a few general features of three popular loan types: Conventional Loans, FHA Loans, and USDA Loans. It is important to note that all homebuyers have unique home financing needs. Academy will make every effort to find the right loan program and pricing for each situation and to provide superior value.

 


Conventional FHA USDA
Minimum Down Payment
3% (can be homebuyer's own funds, gift funds, or employer assistance programs) 3.5% (can be homebuyer's own funds, gift funds, employer assistance program, or government assistance 2nd mortgages) 0%
Maximum Seller Assist
3% (<10% down payment)
6% (>10% down payment)
6% 6%
Mortgage Insurance (MI)
Private Mortgage Insurance (PMI): required with <20% down payment, Premium dependent on loan parameters. Payment options available.
Two forms of insurance required: 
  1.  Upfront Mortgage Insurance Premium (UFMIP): Factored at 1.75% of the base loan amount (can be financed in the loan); AND
  2.  Monthly Mortgage Insurance Premium (MIP): Usually factored at 0.85% of the base loan amount.
Two fees required:
  1. One-time, upfront guarantee fee: Factored at 1% of the base loan amount (can be financed in the loan); AND
  2. Monthly USDA fee: Factored at 0.35% of the base loan amount
Potential Advantages
  • MI can be canceled once 20% equity is achieved.
  • Can use gift funds for down payment
  • Less money out of pocket
  • Lower credit score requirements.
  • Less stringent income requirements.
  • Can use other sources of funds for down payment.
  • Non-occupant co-borrowers allowed for income qualifying.
  • Less expensive MI costs.
  • Little to no money out of pocket.
  • Can use gift funds to lower the monthly payment.
Potential Disadvantages
  • May have higher MI costs.
  • Higher credit score requirements.
  • More stringent income requirements.
  • Higher MI costs than USDA Loans but may be lower than Conventional Loans.
  • MI included for life of the loan and cannot be canceled
  • Monthly guarantee fee included for life of the loan.
  • More stringent income requirements.
  • Only allowed in designated rural areas.
 
                                      Contact Sara at Star Choice Credit Union for more information!
 
Ed Sarquis                                                                                                                         Sara Blom
Branch Manager, Producing                                                                                                                  Financial Service Representative
NMLS #850374                                                                                                                                         NMLS #864480
 
(612) 638-2722 - Branch                                                                                                                          (952) 698-7227 - Phone
(612) 865-4467                                                                                                                                          (952) 698-7248 - Fax
ed.sarquis@academymortgage.com                                                                                                    sarab@starchoicecu.org
 
 
Conventional sample loan scenario: $200,000 purchase price, $190,000 loan amount, 5% down payment, $1,249.19/month (PITI), 30-year fixed 5.250% interest rate, 5.289%APR. FHA sample loan scenario: $200,000 loan amount, 3.5% down payment, $1,363.50/month (PITI), 30-year fixed 4.570% interest rate, 4.937% APR. The MI requirements may change if the homebuyer is putting down more than 3.5% or desired a term less than 30 years. USDA sample loan scenario: $200,000 loan amount, 0% down payment, $1,301.80/month (PITI), 30-year fixed 4.750% interest rate, 4.785% APR.
All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend. Please contact Star Choice for more information.