Loans:

Monarch Funding Corp. offers several loan programs, including but not limited to:

Conventional Loans

• Conventional loans are backed by Fannie Mae or Freddie Mac. There is typically a minimum down payment requirement of 5% (with the exception of certain Fannie/Freddie owned ‘REO’ properties which require only 3% down payment). With a down payment of less than 20% conventional loans require Private Mortgage Insurance (PMI). With a down payment of 20% or more, PMI is not required. Down payment requirements vary depending on the type of purchase (primary vs. second home vs. investment property) and loan amount.

FHA Loans (Federal Housing Administration) 203b
www.hud.gov

• FHA loans are government insured loans that are backed by the Department of Housing and Urban Development (HUD). HUD’s objective with FHA loans is to encourage home ownership in the United States. This is achieved by having low down payment and credit score requirements. The minimum required down payment on the FHA 203b loan is 3.5%. HUD charges mortgage insurance on FHA loans in two ways. There is a Mortgage Insurance Premium (MIP) which is added to the base loan amount then financed over the term of the loan. Additionally there is a Monthly Mortgage Insurance (MMI) which is amortized into the monthly payment over the life of the loan. FHA financing is not limited to first time home buyers.

VA Loans (Veteran’s Affairs)
www.va.gov

• VA Loans are guaranteed by the U.S. Department of Veteran’s Affairs and are available to eligible qualified Veterans. VA loans allow buyers to purchase a home with no down payment. In many cases the Veteran is responsible to pay a “Funding Fee” which is added to the loan and then financed. Certain buyers may be exempt from paying the funding fee due to service related disability. When purchasing or refinancing using VA entitlement, it is very important that your lender is knowledgeable and experienced with VA loans. At Monarch Funding Corp. we have done VA loans for over 30-years.