Federated Lending Corporation

Loan Programs

With the help of an FLC loan officer, you can select just the right mortgage for your particular needs and circumstances. Below are some of the currently available types of mortgages. Programs are subject to change without notice.

30 Year Fixed Mortgage

Loan Range:  $40,000 to $484,350 (484,350 limit as of 1/1/19 reviewed by HUD annually)

Maximum LTV: Purchase: 95%   Refinance: 95%Cash-Out: 80%

Program Strengths: Long term rate security

Program Drawbacks: Often the highest rate program. 30 years may be more rate security than the owner will ever need. The average mortgage is retired after 8 years.

Recommendations: A good program if the owner does not plan to move or refinance for more than 10 years. A good choice if rates are historically very low. Points are tax deductible and make sense on a purchase if the borrower plans to be in the property for at least 4 years. The tax deduction for points paid on a refinance transaction must be amortized over the life of the loan.

30 Year Jumbo Mortgage

Loan Range: $417,001 to $1,000,000+

Maximum LTV:  Purchase: 80%   Refinance: 80%Cash-Out: 80%

Program Strengths: Long term rate security

Program Drawbacks: Rates are higher than the 30 year fixed conforming. More expensive mortgage compared to Jumbo ARMs.

Recommendations: A good program for the security conscious and those with fears of rising rates, but not usually a good way to save money.

15 Year Fixed Mortgage

Loan Range: $40,000 to $484,350

Maximum LTV: Purchase: 95%   Refinance: 95%Cash-Out: 80%

Program Strengths: Rate security for 15 years. Rates often .625% better than the 30 year. More of your payment goes to principal and less to interest. Build equity at twice the pace of a 30 year loan without making double the payment.

Program Drawbacks: Borrower will qualify for smaller loan amount than for 30 year amortized programs.

Recommendations: If building equity is your goal and you would rather save money on interest than buy a more expensive home, the 15 year is the program for you.

15 Year Jumbo Mortgage

Loan Range: $417,001 to $1,000,000+

Maximum LTV Purchase: 80%   Refinance: 80%Cash-Out: 80%

Program Strengths: Rate security for 15 years. Rates often .50% better than the 30 year fixed. More of your payment goes to principal and less to interest. Build equity at twice the pace of a 30 year loan without making double the payment.

Program Drawbacks: Borrower will qualify for smaller loan amount than for 30 year amortized programs.

Recommendations: If building equity is your goal and you would rather save money on interest than buy a more expensive home, the 15 year is the program for you.

5/1 Adjustable Mortgage  30 Year Amortization

Rate is fixed for five years then adjusts each following year based on the 1 year treasury + 2.25% to 3.00%. Caps are generally 2% per year and 5% for the term of the loan but can vary.

Loan Range: $40,000 to $484,350

Maximum LTV  Purchase: 95%   Refinance: 95%Cash-Out: 80%

Program Strengths: The five year lock in period offers as much security as most borrowers use (The national average life span of a loan is 4.7 years) and at a noticeable savings over the 30 year fixed. Program Drawbacks:    Five years fixed may not be enough to give one “peace of mind”.

Recommendations: Great program for borrowers who want added security of a longer fixed rate term but still want to save money over a 30 year.

7/1 and 10/1 Adjustable Mortgage

These loans are the similar to the 5/1 mortgage but feature a longer fixed rate period before the loan adjusts annually. These can offer the peace of mind that a 5/1 may lack. The rates are slightly higher for the 7/1 by .25% to .50%. The 10/1 usually rivals the 30 year fixed rate and is generally .125% (1/8) lower making it not worth consideration.

Reverse Mortgages

Everyone has a unique borrowing situation. To speak with a qualified reverse mortgage specialist, contact Federated Lending at 215-493-1500. Our Staff will answer your questions and help you select the reverse mortgage program that best suits your individual needs.

You will also find more information in a separate section of our website devoted to (REVERSE MORTGAGES by CLICKING HERE).

Until recently, there were two main ways to get cash from your home:

1. You could sell your home, but then you would have to move; or
2. You could borrow against your home, but then you would have to make monthly loan repayments.

Now reverse mortgages give you a third way of getting money from your home. And you don’t have to leave your home or make regular loan repayments. A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live there. It can be paid to you all at once, as a regular monthly advance, or at times and in amounts that you choose. You pay the money back plus interest when you die, sell your home, or permanently move out of your home.

All owners of the home must apply for the reverse mortgage and sign the loan papers. All borrowers must be at least 62 years of age for most reverse mortgages. Borrowers generally must occupy the home as a principal residence (where they live the majority of the year).