FHA/VA Products
The Federal Housing Administration (FHA) insures mortgages for qualified homebuyers and refinancers with special features like low down payment requirements and lenient qualifying terms. As with many other government programs, FHA borrowers do not have to meet maximum income qualifications; however, maximum loan amounts may apply based upon region.
- Up to 96.5% financing on some loans
- Home seller can contribute up to 6% of sales price to help with closing costs and prepaid items for the new homebuyer
- 100% of down payment may be provided as a gift by a relative or employer
- Up-front Mortgage insurance can be financed into the mortgage loan
- Cash reserves may not be required for loans under $417,000
- Home seller can pay the interest (up to 6%) on the borrower's mortgage for a specified number of months in some states
- Lenient income, debt, and credit qualifications making it easier for more people to qualify
- Compensating income factors, such as roommate income, may be considered
- May be assumed by a qualified purchaser if home is resold
- No penalty for prepaying your loan
To see examples of monthly payment terms, view our APR Examples.
If you're a veteran, you may be eligible for a mortgage loan, guaranteed by the Department of Veterans Affairs (VA). This special program for veterans makes it is easier to finance the purchase of a new home.
- 100% financing means no down payment needed
- Home seller can pay closing costs and discount points (in some cases without limit)
- Home seller can pay prepaids, funding fee and temporary buydown funds up to a maximum of 4%
- No cash reserves required for loans up to $417,000 (two months cash reserves are required
for loans greater than this amount) - Lenient income, debt, and credit qualifications
- SunTrust underwrites our own VA loans (a SunTrust Advantage)
- May be assumed by a qualified purchaser if home is resold
- Available for purchases of primary residences only; however, investment properties are
permitted on Interest Rate Reduction Refinancing Loans (IRRRLs) - No penalty for prepaying your loan
The FHA ARM combines the low initial interest rate of an Adjustable Rate Mortgage (ARM) with the low down payment and lenient qualifying terms of FHA-insured mortgages to produce one of the most affordable loan products at SunTrust Mortgage. This loan offers exceptional interest rate protection with annual and lifetime interest rate caps that are lower than most ARM programs, as well as an extended period before the first rate change, depending on the closing date.
- Choosing a higher margin allows you to obtain a lower initial rate
- For 5-year ARMs, first adjustment occurs 60 to 66 months after the first installment payment is due
- Interest rate cannot increase more than 1% per year or more than 5% over the life of the loan
- 5/1 ARMS qualify at note rate
- May be assumed by a qualified purchaser if home is resold
- No penalty for prepaying your loan
As a benefit to veterans, the Department of Veterans Affairs guarantees repayment of loans made to veterans with no down payment, in most cases, and liberal qualifying guidelines. This special program helps veteran finance their homes.
- 5/1 ARMS qualify at the note rate
- 100% financing means no down payment needed
- Home seller can pay closing costs and discount points (in some cases without limit)
- Home seller can pay prepaids, funding fee and temporary buydown funds up to a maximum of 4%
- No cash reserves required for loans up to $417,000 (two months cash reserves are required
for loans greater than this amount) - Lenient income, debt, and credit qualifications
- May be assumed by a qualified purchaser if home is resold
- Available for purchases of primary residences only; however, investment properties are
permitted on Interest Rate Reduction Refinancing Loans (IRRRLs) - No penalty for prepaying your loan
ARM Alternative (Rate Buydown)
SunTrust Mortgage's Adjustable Rate Mortgage (ARM) Alternative is a temporary buydown of the interest rate on a fixed rate mortgage loan. The ARM Alternative provides a compelling option for borrowers who want the best of both worlds -- a low initial rate and the interest rate protection of a fixed rate mortgage.
- Available with either conventional fixed rate loans, FHA, or VA loans
- Maximum loan amount is the conforming loan limit
- Interest rate is known over the life of the loan; no guessing
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