Fixed rate mortgages: A fixed rate mortgage loan is a loan in which the interest rate and payments
remain the same for the life of the loan.
Adjustable rate mortgages: An adjustable rate mortgage is a mortgage loan which allows the lender to
adjust the interest rate in accordance with a specified index periodically and as agreed to at the
inception of the loan.
Conventional mortgage loans are also known as a Fannie Mae or Freddie Mac loans. The guidelines and
credit requirements are established by either Fannie Mae or Freddie Mac. Generally, the credit
requirements for this program type are a bit more stringent than a government loan.
FHA, or Federal Housing Administration, is a mortgage loan that is insured by FHA. FHA and/or HUD
(Department of Housing and Urban Development) set the regulations and requirements to qualify for
this type of loan. Some benefits of FHA a Mortgage Loans are:
- Lower down payment
- Less stringent credit rating
- Government Insured
VA, or Veterans Administration, is a mortgage loan that is insured by the Veterans Administration. This
program is only available to Veterans or the eligible dependents of Veterans. VA sets the service
requirements to qualify for a VA backed mortgage loan. A certificate issued by the VA will document
your eligibility for a VA insured loan. Some benefits of a VA Mortgage Loans are:
- No down payment required
- No monthly Mortgage Insurance
USDA/RD, or United States Department of Agriculture/Rural Development, is a mortgage loan that is
insured by the USDA. The mortgage program has less stringent credit requirements then a conventional
loan and can only be used on homes in qualified areas set by the USDA Rural Development. Some
benefits of a USDA/RD Mortgage Loans are:
- No down payment
- Low monthly Mortgage Insurance
Bond Programs are community based mortgage loan programs that Gulf Coast Bank & Trust Co.
participates in. Typically the Bond programs are designed to help meet the housing needs of low-to- moderate income applicants. The programs are typically designed for first time homebuyers with rates
that are usually below the current market. Some benefits of a Bond Programs are:
- Down payment assistance is often available to qualified applicants
- Lower interest rate
- Generally less stringent credit requirements
- Closing costs assistance may be available
FHA 203k mortgages loans are also known as an FHA Renovation Loans. These loans are for homes
needing repairs or renovations. Normal FHA credit qualifications will still have to be met.
Construction Loans are loans which offer the ability to either construct a residence from the ground
up or renovate an existing property. Gulf Coast Bank and Trust Company offers both a single close
construction loan, as well as a two time construction loan. Differences in the two programs can be
discussed with your mortgage loan originator.
Reverse Mortgage program or The Home Equity Conversion Mortgage (HECM) is a mortgage loan that
enables borrowers to borrow against the equity in their home. These loans are designed for senior
homeowners who are of the age of 62 or older. This is an FHA loan. Contact our Reverse Mortgage
Specialist for specific details.