Central Massachusetts Mortgage, through our various lenders, can offer extended rate locks. Standard rate locks are for 45 days. These extensions can go as far as 270 days. This comes in handy for new construction where you're expecting a rate increase before closing and would like to "protect" your rate. There are adjustments to the rate depending on how far your lock will go. Usually, rate locks for 90 days or longer require an up-front fee which will be refunded at time of closing. This varies from lender to lender.

Automated underwriting is up and running and has been for quite some time. This computer underwriting gives us the ease of entering loan data and receiving results within minutes. It gives you, the customer, the ease of having pre-approval while shopping for a property. This program is credit driven so credit must be discussed in detail at the time of the application as it gives us an idea of what may or may not be acceptable. Contact us for more information.

Conventional 5% down are loans based on old time underwriting guidelines. By this, we mean 5% down from borrower’s own funds with qualifying ratios of 28/36. Excellent credit allows these ratios to expand. Closing costs must be paid by borrower or seller can contribute up to 3% of sales price to pay for closing costs and prepaids (these cannot be financed). There are so many expansions to these loans. See Zero Down program, FNMA-Flex 97, 3/2 Community Homebuyer Program.

The Zero Down Program is a 30 year fixed rate program designed to meet the needs of moderate income applicants and applicants with good credit history in moderate income areas by reducing the cash needed to purchase a home. Applicants also looking to reduce their payments by refinancing their first mortgage benefit with the 100% financing. This program is aimed toward first-time homebuyers or moderate income applicants with a good credit history who have limited savings to purchase a home. This program allows for easier qualifying.

Single family homes and condominiums are eligible. Household income cannot exceed 80% of the median income. Borrowers must have two months "reserves" (principal, interest, taxes, insurance and PMI) from their own funds.

The Combo Mortgage is a first and second mortgage, closed simultaneously. Borrower(s) must have first 5% down from own funds. Remainder is calculated as follows: 80% 1st mortgage and 15% 2nd mortgage. Rates for first and second mortgages vary. This "combo" of mortgages cancels the private mortgage insurance (PMI) requirement as the first mortgage meets the 80% guideline.

The ARM Alternative is not an adjustable rate mortgage. It is a temporary buy down on a fixed rate loan. It’s called the ARM Alternative because it is an alternative for borrowers who like the low initial interest rate of an adjustable rate mortgage but want the interest rate protection of a fixed rate mortgage. An example of the ARM Alternative would be as follows: Rate for first year would be 7.50% for the first year, 8.50% for the second year, and 9.50% for years 3-30. (These interest rates are for example purposes only).

The BI-Weekly Mortgage plan is a payment option that enables borrowers to pay off their mortgage loan more rapidly by making 13 instead of 12 payments per year. Borrowers make one-half of a regular monthly payment every two weeks. Payments are made by automatic draft from your checking or savings account. Borrowers may convert back to the traditional monthly payment plan at any time in the future. Only fixed rate mortgages are eligible. Minimal fees apply.

The No Income Verification ("stated income") is a fixed rate loan program that eliminates the verification of income, although assets and liabilities must be verified. The borrower’s stated income must be reasonable for their occupation. The borrower’s qualifying ratios are calculated on the basis of information disclosed on the loan application.

Fannie Mae – Flex 97 is a true 3% down program. Homebuyer education is not required. However, credit must be good. This program must be submitted through automated underwriting with an "approve/eligible" finding. Only available for the purchase of a primary residence- no second homes or investments properties.

1 year ARM (adjustable rate mortgage) These adjustable rate loan products, which are tied to one of several available index rates, have an initial interest period for the first 12 months, a maximum interest rate adjustment (periodic rate cap) for each change thereafter, and a maximum interest rate ceiling for the term of the loan. (Usually 2% cap per year, 6% cap for life of loan) This program is intended for applicants who are price sensitive, experienced users of credit with the financial capacity and willingness to manage periodic fluctuations in monthly principal & interest payments.

3/1 ARM A two-phased adjustable rate intermediate ARM. During the initial phase of the loan term, the interest rate and the monthly payment are fixed. During the second phase, the interest rate becomes adjustable for the remaining term of the loan. This program targets applicants who desire the advantage and stability of a lower fixed interest rate to remove the risk of payment fluctuations during the initial period of the loan term. Specifically, this program targets applicants with a moderately short-term time horizon.

5/1 ARM A two-phased adjustable rate intermediate ARM. During the initial phase of the loan term, the interest rate and the monthly payment are fixed. During the second phase, the interest rate becomes adjustable for the remaining term of the loan. This program targets applicants who desire the advantage and stability of a lower fixed interest rate to remove the risk of payment fluctuations during the initial period of the loan term. Specifically, this program targets applicants with a moderately short-term time horizon.

7/1 ARM A two-phased adjustable rate intermediate ARM. During the initial phase of the loan term, the interest rate and the monthly payment are fixed. During the second phase, the interest rate becomes adjustable for the remaining term of the loan. This program targets applicants who desire the advantage and stability of a lower fixed interest rate to remove the risk of payment fluctuations during the initial period of the loan term. Specifically, this program targets applicants with a moderately short-term time horizon.

10/1 ARM A two-phased adjustable rate intermediate ARM. During the initial phase of the loan term, the interest rate and the monthly payment are fixed for the first ten years. During the second phase, the interest rate becomes adjustable for the remaining term of the loan. The rate and payment adjustments occur on an annual basis. Applicants who desire the advantage and stability of an extended initial fixed interest rate to remove the risk of payment fluctuations during the initial period of the loan term.

A+ Rewards Program offers our customers with great credit a great program! The A+ Rewards promotion offers qualified borrowers with a minimum credit score of 720 a 1/8% interest rate reduction on the 5/1 ARM. Borrower’s excellent credit earns reduced documentation requirements.

FHA mortgages offer more advantages to homebuyers. The FHA program has more flexibility when it comes to income and credit history. Borrowers who have no "reportable" credit are allowed; however, we must establish non-traditional credit items such as timely rent, cable, telephone payments. Borrowers may finance allowable closing costs as part of loan amount.

Minimum down payment is 3% and can be 100% gift from relative, borrower’s employer or labor union, a charitable organization, a governmental agency or public entity that provides homeownership assistance to low-and-moderate incomes.

FHA allows non-occupying co-borrowers to assist in qualifying. This non-occupying co-borrower must be a relative of the occupying borrower. On FHA loans, sellers are allowed to pay 6% of sales price to help borrowers with closing costs and prepaids.

VA is a program for eligible veterans, reservists, active duty or national guards with NO DOWN PAYMENT. This program allows sellers to contribute up to 4% of sales price to pay toward closing costs and VA funding fee. The VA funding fee is based on the amount of down payment – see chart below:

The 3/2 Community Homebuyer Program is a 5% down program where only 3% must be own funds. The remaining 2% can be a gift from a relative, grant from non-profit organization or grant from government agency. This program has an income limitation as it is aimed toward moderate-income families. Homebuyer education is required. This requirement may be waived if borrower 1.) has previously owned a home, 2.) has at least 5% down payment from own cash funds, and 3.) has at least 2 months "reserves" (mortgage payment including principal, interest, taxes, insurance and PMI) after closing.

There are several types of 100% financing loans available. These programs provide applicants with a strong credit history the ability to obtain a home loan with no money down. These loans target applicants who have minimal cash or choose to save their cash for other reasons. These programs do not have income limits or property location restrictions. Another form of 100% financing is the 80/20 piggyback mortgage which is a first and second mortgage that combined equals 100% of the sales price. Credit scores are important in this program.

The No Ratio Loan Program provides applicants with a strong credit and asset base the ability to obtain home loans with no income verification or ratio calculation. It is designed to meet the needs of applicants who have demonstrated a high regard for their financial obligations as evidenced by a credit score of 680 or greater. The applicant must evidence a propensity and capacity to save and to maintain stable employment, defined as a minimum two years in the same line of work. This type of loan is geared toward those applicants who have stable employment and complex sources of income or rapidly expanding incomes.

Attention Teachers!! There are two types of mortgages geared specifically toward teachers and school administrators. The Teacher Zero Down is a unique program to help those with a good credit history overcome the high cost of homeownership by reducing the cash needed to purchase a home. This program is only available on purchase transactions. The Teacher Flex is a unique program designed to help by reducing the down payment to 3%, with only $500 coming from the applicant's own funds. To be eligible for these programs, one of the applicants must be a full- or part-time teacher or school administrator in a public or private school. A school administrator is defined as a principal, vice principal, librarian, or health care professional such as a nurse, counselor or speech therapist. In order to be considered "part-time" the applicant must have regularly scheduled hours at the school and the school must be the applicant's primary source of income.

The Lock & Shop Program does just what it says - it gives buyers the opportunity to lock a rate while you're shopping for your home. You must have a fully executed Purchase & Sale agreement within 30 days of the initial lock. Call for more details.

The 7 Year Reset Mortgage offers an a lower initial interest rate for a fixed period of seven years which will reset in 7 years with an option to modify to a fixed rate for the remaining 23 year term. You must be in good standing with the lender at the time of the reset for the option to be available to you. There is also a 5 year reset which takes the same scenario into play but starts off at a five year fixed with the option to modify for the remaining 25 years.

Construction Loans require ONLY 5% down! Rate depends on time needed to complete construction. Range runs from 55 days to 355 days. If land is already owned, the equity in the land becomes your down payment when time comes to build.

Land Loans require 25% down payment. One year adjustable rate mortgage and 3/1 ARM are the only products available. Loans are amortized over 15 years. Equity in land becomes down payment when ready to build home with construction loan.

We offer financing for Investment properties with as little as 10% down! 1-4 family properties are eligible. 1-2 family rates are better than 3-4 family. Must have good credit scores. With 10% down, PMI does apply.