(616) 887-9000

108 N. State St. St
Sparta, MI 49345

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Mortgage Programs

Our mortgage programs include but at not limited to the following. While there are literally hundreds of mortgage programs available, most programs are based on one or more of these beneficial mortgages.

Fixed Rate Mortgages
The standard, fixed rate mortgage is the most common mortgage program. A fixed rate mortgage maintains the same interest rate during the loan term. The term may range from 10 to 30 years. A fixed rate mortgage offers the borrower the stability of a constant payment.

Adjustable Rate Mortgage
An adjustable rate mortgage (ARM) begins with a fixed interest rate for a specific term. At the end of that term, the interest rate adjusts periodically as it corresponds to market conditions. Most ARMs have an interest rate cap annually and for the term of the loan. Popular ARM terms are 1, 3, 5, 7 & 10 years. Adjustable rate mortgages are often beneficial for borrowers that will be moving or refinancing within the pre-determined term. The beginning interest rate for an ARM is generally lower than a fixed rate mortgage.

Balloon Mortgage
A balloon mortgage is a fixed rate mortgage for a specific term (5 or 7 years). The payments for a balloon mortgage are amortized over 30 years. At the end of the term, the borrower may pay-off the balance with a lump sum or have the option of refinancing to a new fixed rate for the remainder of the term (either 24 or 23 years) if certain conditions are met. Not unlike an adjustable rate mortgage, the initial interest rate is generally lower than the prevailing fixed rate at the time the mortgage is closed.

FHA Mortgage
The FHA (Federal Housing Administration) mortgage is an outstanding program for borrowers with little or no funds available for down payment or those with compromised credit or both. An FHA mortgage is available as fixed rate loan or an ARM.

VA Mortgage
The VA Home Loan Guaranty program is available to provide home mortgage financing for veterans. An important benefit of the program is that qualifying applicants may secure 100% financing. Borrowers must provide a certificate of eligibility from the Veterans' Administration.

USDA Rural Development
A unique program that assists qualifying borrowers with financing for rural properties (located outside specific metropolitan areas). The Rural Development program is ideal for borrowers requiring a minimal down payment.

Construction Loans
We facilitate construction loans that provide up to 85% financing during construction. The final draw to the builder is taken at the close of an end loan allowing the buyer to build and purchase a new home with as little as 5% down.

Second Mortgages
A second mortgage takes an inferior lien position to a first mortgage and may be obtained simultaneously with a first mortgage for a purchase transaction or at a later date as a means to obtaining equity in the home. Second mortgages are generally for shorter terms than a first (5-15 years). The payment due date is often in the middle of the month. Fixed and adjustable rates are available.

Home Equity Line of Credit (HELOC)
A home equity line of credit may be obtained as an alternative to a second mortgage or as a first mortgage. A home equity line of credit is generally allows for interest only payments with a balloon due at the end of the term, usually 10 years. In most cases, a HELOC offers a lower, variable rate and has fewer or no closing costs.

Special Programs
We have a variety of programs for borrower's that have unique situations that may prevent a conforming loan approval. These mortgages are helpful for:

· Self-employed borrowers
· Bankruptcy
· Compromised Credit
· Unverifiable Income

Ridge Realty
(616) 887-9000

108 N. State St. St
Sparta, MI 49345

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