Stearns provides conventional financing, in which mortgage insurance is not necessary if a borrower makes a minimum down payment of 20 percent of the new home's value; FHA loans, which require a minimum down payment of 3.5 percent; and FHA 203k, or rehabilitation loans, which offer extra funds for improving or renovating a homebuyer's desired house, as the company's website explains. Stearns also features fixed-rate, Veteran Affairs and adjustable-rate mortgages as well as U.S. Department of Agriculture Rural loans.
Homebuyers with high credit scores are eligible for conventional financing, while those with blemished credit records may qualify for FHA loans, according to Stearns. Rehabilitation loans suit applicants who plan to improve the homes they want to buy in small ways, such as by upgrading the electrical system or changing outdated fixtures.
Fixed-rate loans involve interest rates that remain consistent unless taxes and homeowner's insurance funded by an escrow account change in costs, notes Stearns. Eligible veterans and active duty military may purchase homes without making a down payment by obtaining VA loans, which have less stringent requirements and limited closing fees because the government insures them.
As of 2015, qualifying homebuyers who want to buy houses ranging from $417,000 to $2,000,000 in costs may apply for jumbo loans, as suggested by Stearns. An ARM loan is a good choice for borrowers who intend to sell or refinance their homes within five to 10 years.