At Reed Mortgage we have well over 100 different loan programs

At Reed Mortgage we have hundreds of different loan programs available to our customers. While most of these loan programs are available regardless of whether you are purchasing a home or refinancing, we offer loan programs specifically for home purchase situations. Listed below are some of our home purchase loan programs that we think are especially beneficial.

Flex 100 Loan

The down payment is typically the major obstacle to buying a home. Many potential homebuyers have the income to qualify, but lack the funds for the down payment. As described below, the Flex 100 Loan solves the down payment problem for many homebuyers.

In the past, Conventional loans required the homebuyer to make a down payment of at least 5% of the purchase price. For example, if you are buying a home with a purchase price of $200,000, the down payment must be at least $10,000.

With the Flex 100 Loan, the down payment barrier is eliminated. Instead of the normal 5% down payment, no down payment is required.

The Flex 100 Loan is a fixed rate loan, has terms of 10- 30 years, no pre-payment penalty, with a maximum loan amount of $417,000.

Renovator Loan

In today’s Colorado housing market, many potential homebuyers are discovering two less than desirable choices when attempting to buy a home. The first choice is an existing house in a good location and at a reasonable price, but which is “outdated” and would require a major remodeling project. The second choice is a new construction house with many nice amenities, but which is not in a convenient location and which is somewhat expensive.

In the past, many homebuyers have opted for the new construction house simply due to the higher cost of the mortgage financing for a major remodeling project of an exiting home. However, as we will explain, the Renovator Loan provides you with a viable, cost effective way to simultaneously purchase an existing home and finance the future improvement project.

With a typical mortgage loan, the maximum loan amount that you can obtain is based on the current property value, not on the value after the renovations have been completed. Thus, if you purchase an exiting home with plans to remodel, your only option is to buy the home with a 1^st mortgage loan based on the current value, pay for the remodeling costs out of your own pocket, and then obtain a 2^nd mortgage loan to pay for the remodeling project. However, this involves paying Closing Costs for two mortgage loans, and the interest rate on a 2^nd mortgage is at least 2%-3% higher than a 1^st mortgage.

With the Renovator Loan you can borrow up to 95% of the future value of the property – what the property value would be after the improvements have been made. Thus, you are able to simultaneously purchase the home and have the financing in place to complete the remodeling project. And because the Renovator Loan is a 1^st mortgage loan, you do not have to pay Closing Costs on two loans and you do not have to pay the higher interest rate of a 2^nd mortgage.

The Renovator Loan is a fixed rate loan, has terms of 10- 30 years, no pre-payment penalty, with a maximum loan amount of $417,000.

Second Homes/Investment Property

When the property you are purchasing will be used as a second home or investment property, most mortgage lenders require a fairly large down payment. While the amount of the down payment varies from lender to lender, a required down payment of 20%-25% of the purchase price is not unusual.

At Reed Mortgage, we can provide a mortgage loan for the purchase of a second home with a 5% down payment, or investment property with a 10% down payment. This is a fixed rate loan, a term of 10- 30 years, no pre-payment penalty, and with a maximum loan amount of $417,000.

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