Loan Options

• Build Wealth Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This would provide you with a significant return on your investment.
• Build Equity Equity is the amount of money your house is worth minus what you still owe. Every time you make a mortgage payment, the amount you owe reduces and increases overall equity. This is beneficial, because equity can be accessed and converted to cash. See our Refinancing page to learn more.
• Tax Deductions As a home owner, your mortgage interest and property tax payments may be deductible from your federal taxes and possibly state taxes.*

*Consult a tax professional for more information.

• Strengthen Credit History Making monthly loan payments is evidence that you are a responsible borrower, which builds your credit history. This will help you take out loans for other purchases, such as a car or even home renovations.
• Create the Home You Want Owning a home gives you the freedom to create your dream living environment. Whether you want to update appliances, paint rooms, landscape a yard, own pets - you will have a house that is completely yours to customize.

• Before you starting house hunting, you need to make sure you are looking in the right price range. Getting pre-qualified by your Loan Officer will give you a better idea of how much home you can afford based on your current financial situation.

Think about where you will be in the years to come; whether you want to move again or planning to stay long term. This is an important factor when deciding which type of mortgage is best for you.

As you begin to contemplate buying, make a list of the most important things you want in a home. For example: a condo or single family home, monthly mortgage payment, location to work and school zones, neighborhood amenities, and yard size. Not only will this list help your real estate professional find the perfect home, it will also help your Loan Officer tailor a loan program that fits your needs.

Buying another property as a rental can provide ongoing income from tenants, and a vacation home on the beach or mountains is equally attractive. However, you will need to decide whether the home will be a place to live (primary residence) or a place to rent (investment property). Loan specifications are different based on how you plan to utilize the home. Your Loan Officer can explain the different requirements and help navigate through the process.

• Lower payments- Refinancing with a lower interest rate could result in lower mortgage payments. This may provide extra money each month for homeowners to save, or spend, however they choose.
• Shorten your payment term- If you want to build equity faster, or pay off your mortgage in less time, you can refinance to a shorter loan term. This may result in a slightly higher monthly payment, but you may also save money by paying less toward interest.
• Convert your home's equity into cash- As a homeowner, you make payments to increase your equity, or value of ownership. Refinancing allows you to turn that equity into cash - referred to as "cash-out" refinancing. You are free to access and spend the money without tax penalty*.

*Consult a tax professional for more information.

Renovating for a new home purchase

If you're a buyer who's found a home with great potential, but needs some repairs, First Home can provide a loan for the purchase and renovation costs. We offer a number of loan types that cover minor to major rehabilitation, all included with one mortgage payment.

Improving your current home

If you're a current homeowner who's interested in making updates that would enhance the look and layout of your house, a renovation might be the solution. Based on the type and scope of your remodel, we can offer a variety of loans that will help with the cost.

Types of repairs and remodels include:

• Room addition
• Garage, driveways
• Roof & gutters
• Plumbing & electrical
• Decks, patios, porches
• Basement finishing
• Doors, windows
• Landscape, fencing

For a full list of eligible improvements and considerations, contact a Bill Payne today!

Breaking ground and watching your custom home take shape is possible with a construction loan from First Home Mortgage. You have the option to apply for a loan that covers construction only, or a loan that finances the construction and later transfers to a standard mortgage. Talk to us about what you envision for your new home, we'll help you make it happen.

While buying a home can appear complicated, it is our job to ensure it is as seamless as possible.

The loan process begins with an initial consultation with your Loan Officer. Together, you will outline goals and assess your financial situation. This will provide a better understanding of the mortgage amount you may qualify for.

Here's what you can expect from start to finish.

1. Pre-Qualification:

The first step toward a home purchase is getting pre-qualified for a loan. Your Loan Officer will review your financial information and determine how much you are qualified to borrow. As a pre-qualified buyer, your offer on a home is more likely to be accepted.

• Loan Preparation Checklist
• Copy of photo ID
• Social Security number
• Copies of checking and savings account statements for the past 3 months
• Most recent pay stubs detailing your last 30 days of employment
• Federal tax returns with W-2s, K-1's, 1099 for the past 2 years
• Evidence of any other assets such as stocks and bonds
• Contact name and address of someone who can verify your employment

Since everyone's situation is unique, additional documentation might be required. Your Loan Officer will let you know exactly what is needed.

2. Making an Offer:

• Once you have found a home, you will make an offer to buy it from the seller. A real estate professional will conduct negotiations and a contract will be submitted to purchase, accompanied by the pre-qualification letter. Once your offer is accepted, you will begin the application process.

3. Mortgage Process:

• When the seller accepts your offer, you begin the mortgage process. Your Loan Officer will gather your financial information, loan application and provide the initial disclosures based on your loan terms. This process will also include:
• Ordering the appraisal; estimating the value of the home
• Ordering/updating your credit report
• Submitting your loan to Underwriting for review
• Conditionally approving your loan (additional documentation might be requested)
• Providing information on homeowner's insurance and selected title company
• Underwriting approval on all acceptable documents
• Final loan approval - you are cleared to close

Your Loan Officer will keep you informed, answer your questions, and navigate you through the loan process. When the loan application is received by the Processor, they make sure everything is complete and accurate.

4.Closing Process:

In the days leading up to settlement, you will be sent final documentation about your loan, including the Closing Disclosure. You must review, sign and return the paperwork a minimum of three days prior to your scheduled closing date. Your Loan Officer, or a designated employee, will tell you the amount of money you need to close on your home.

• What happens on closing day
• Meet with your settlement agent as well as your Loan Officer, or designated employee.
• Provide funds to the title company to cover your down payment, closing costs, taxes, insurance and other costs.
• You and the seller will execute all closing documents so the settlement agent can properly record the purchase of your home.

5.Making Your Payment:

• Your settlement documents will include instructions on how to make your first payment. While Bill Payne | First Home Mortgage services many of our loans, it is possible servicing will be transferred. You will be mailed a notification that designates your mortgage servicer. If you have any questions, you can always contact (843) 532-1392.

Conventional Home Loans - Conventional mortgages are loans that are insured by private companies.

FIXED RATE - A fixed-rate mortgage has an interest rate that stays the same for the entire life of your loan. This offers a predictable monthly payment for a term of 10 - 30 years.

• Highlights
• Interest rate security
• Monthly payment stability
• Best for buyers planning to stay in their homes for a long time

ADJUSTABLE RATE - Adjustable rate mortgages (ARMs) may allow you to lock in a low, introductory interest rate that could increase over time. A hybrid ARM offers a fixed period (typically 3-10 years) followed by a yearly adjustment to the interest rate. Hybrid ARMs are often represented by fractions, such as 5/1 - meaning the first rate reset takes place after five years and continues to reset each year for the life of the loan.

• Highlights
• Low starting interest rate
• Lower monthly payments during the initial term
• Best for buyers planning to keep their loan for a shorter period

JUMBO - Jumbo loans typically have higher loan amounts not allowed for standard conforming programs (set by Fannie Mae and Freddie Mac). This allows borrowers to a purchase a higher priced home with an affordable down payment.

• Highlights
• Fixed and ARM options
• Loans up to $3 Million
• Best for borrowers who are in the market for higher priced homes

Government Loans - The government guarantees certain programs through various agencies to better serve borrowers with unique circumstances. These loans can only be offered through an approved lender such as First Home Mortgage.

FHA - FHA loans are insured by the Federal Housing Administration (FHA). Programs are available for borrowers with limited savings for a down payment.

• Highlights
• Down payment as low as 3.5%
• Flexible use of gifts and grants for down payment
• Best for borrowers with limited assets for purchase

VA - VA loans are insured by The Department of Veterans Affairs (VA).Service members and their spouses are eligible to purchase with little to no down payment or cash to close.

• Highlights
• Low to no down payment
• Refinance within the VA program without re-qualifying
• Specifically for eligible past and present service members and spouses

USDA - The U.S. Department of Agriculture (USDA) insures loans to home buyers with low to moderate income moving to designated rural areas.

• Highlights
• Down payment not required
• Provide up to 100% financing
• Best for borrowers with limited assets looking to buy in rural areas

Down Payment Assistance Programs - State Housing Finance Agencies offer state specific programs to residents to help purchase a home. Conditions and guidelines vary depending on the agency. These programs offer special incentives for first time home buyers:

• DCHFA (DC Open Doors)
• Florida Housing
• MMP (Maryland Mortgage Program)
• Mass Housing (Massachusetts)
• NCHFA (North Carolina Housing Finance Agency)
• Rhode Island Housing
• VHDA (Virginia Housing Development Authority)

FHA 203(K) - The Federal Housing Administration (FHA) offers loans specifically for renovation. FHA 203(k) funds a primary residence including repairs in one mortgage with a minimum down payment of 3.5%. There are two types of 203(k) loans:

• Standard FHA 203(k)- Allows borrowers the flexibility to finance major rehabilitation that costs a minimum of $5,000 up the county limit.
• Streamline FHA 203(k)- Provides financing for minor renovations and repairs up to $35,000 of your mortgage.

FNMA HOMESTYLE - Fannie Mae (FNMA) Home Style allows you to purchase and renovate a primary residence, second home or investment property* with a minimum down payment of 5% in a single mortgage up to the lending limit.

CONSTRUCTION ONLY - Construction only loans strictly finance the building of a house. Once the home is complete, borrowers must refinance into a permanent loan.