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C U Financial Services of Hawaii, LLC offers several loan programs. Most loan programs contain different features that can be confusing for even experienced homeowners. The most common loan programs include:
Conforming | Jumbo | Second Mortgages | Equity Lines
Conforming Loans
Conforming Loans are those that meet Fannie Mae and or Freddie Mac underwriting requirements. In other words, income, credit, and property requirements must meet nationally standardized guidelines. Conforming loans are subject to loan amount limits that are set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These limits vary based on the region in which the subject property is located as well as the number of legal units contained in the subject property.
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48 States |
Hawaii & Alaska |
| 1 unit property |
$417,000 |
$625,500 |
| 2 unit properties |
$533,850 |
$800,775 |
| 3 unit properties |
$645,300 |
$967,950 |
| 4 unit properties |
$801,950 |
$1,202,925 |
Under the FNMA and FHLMC Charter Acts, the loan limits are 50% higher for first mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.
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Jumbo and Non Conforming Loans
Jumbo loans are those that exceed the loan amounts allowed by FNMA and FHLMC.
Programs:
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Second Mortgages or Home Equity Closed-End Loans
A close-ended loan is one where a set amount of money is borrowed and repaid within a specific period of time. There are a multitude of second mortgage products available and lender guidelines vary widely. Generally, loan amounts, interest rates and fees are tied closely to equity in the property and credit scores. Whether to do a first or second mortgage or whether to take a line of credit or closed-end loan depends largely on the purpose of the loan.
Second mortgages are ideal products for the following situations:
- Debt Consolidation: This is the most common purpose for acquiring a second mortgage. Typically, a second mortgage is paid off in a shorter period of time than a first.
- Home Improvements: The greater the equity in a property, the better the deal on a mortgage. Often, a borrower will take second mortgage to complete improvement projects. After the improvements are completed, the borrower refinances the first mortgage.
- Cash Out: Many borrowers use the equity in their properties to obtain cash to pay for college expenses, vacations, or any other purpose that requires a fairly sizable amount of cash.
- Eliminate the requirement for Mortgage Insurance.
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Home Equity Lines of Credit
A home equity line of credit loan is a line of credit that is secured against real estate. The amount of the credit line is dependent upon the amount of equity in the subject property and the lender's guidelines. Each lender has its own specific guidelines and limitations. Lines of credit are typically designed for borrowers who intend to pay back the borrowed funds within a short period of time. Equity lines of credit are processed and underwritten similar to traditional mortgages; however, lender guidelines vary widely.
Home equity lines differ from traditional mortgages that provide funds up front, then require repayments of principal and interest each month. With a home equity line, a borrower may draw against any available credit on the line while continuing to make monthly payments during the "draw period." The draw period usually lasts 15 years. At the end of that time, the borrower has a set number of years to repay the remaining balance in full without further draws. The "repayment period" is typically 15 years.
Interest on home equity lines accrues similar to interest on credit cards and payments are based on payment factors.
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