Loan Programs

The loan that is right for you depends on several factors:

  • your current and projected financial situation
  • how long you intend to keep the home
  • how much you want to put down
  • your eligibility for special programs such as veterans, first-time homebuyers or jumbo loans
Learn More About Buying a Home

Fixed-Rate (Conventional) Mortgages

The traditional fixed-rate mortgage has both an interest rate and monthly payment that remains constant (locked in) for the life of your mortgage loan. Typical loans of this sort come in 15, 20 and 30 year terms. Principal payments are the money used to pay down the balance of the loan. Interest payments are the charges paid to the lender for the privilege of borrowing the money. Fixed-rate mortgage payments consist of principal and interest payments which are amortized over the life/term of your mortgage loan.

Adjustable-Rate Mortgages (ARMs)

An ARM is a loan type that features an interest rate that will change/adjust at a scheduled interval.  One type of ARM, called a Hybrid ARM, begins with a fixed interest rate for a period of time and then switches to a variable interest rate loan that changes/adjusts on a yearly basis – i.e.: a 5/1 ARM loan will have a fixed interest rate for the first five (5) years, followed by a variable interest rate that changes/adjusts on an annual basis.

Construction Loan/Rehabilitation Loan

Construction loans are usually short-term and typically have specific guidelines related to how loan funds will be disbursed during the construction process.  This disbursement schedule is commonly referred to as a “draw” and typically follows the phases of the construction project.  During construction, borrowers are usually expected to make interest only payments on the borrowed funds. Upon completion of construction, the construction loan may be converted into a fixed or adjustable rate mortgage loan, which is referred to as a “construction-to-permanent” financing arrangement. For your convenience Ulster Savings also offers single close construction loans.

Jumbo Mortgage

A Jumbo Mortgage (also known as a Non-Conforming Loan) is a mortgage that is above the conventional conforming loan limits set by the Federal Housing Finance Agency and adhered to by Fannie Mae and Freddie Mac. These larger loans may have their own set of guidelines and qualifying requirements. Visit fhfa.gov for a complete list of current conforming loan limits.

Land Loan

Land loans are unique compared to existing home loans and are dictated by the purpose and use of the land. Your mortgage specialist will discuss various options and help you make the best decision based on your specific needs.

Government Mortgage Loans

FEDERAL HOUSING ADMINISTRATION (FHA) Mortgage

The FHA mortgage program is one well-known example of a government-insured loan program. FHA loans are available to a variety of borrowers, including first-time home buyers. These programs feature competitive interest rates, low down payment requirements, and down payment assistance. Generally, you can only have one FHA loan at a time.

STATE OF NEW YORK MORTGAGE AGENCY (SONYMA) Mortgage

The SONYMA offers programs to assist first-time home buyers with the purchase of a home in New York. These programs feature competitive interest rates, low down payment requirements, and down payment assistance. Income and purchase price restrictions may apply based on your family size and the area you are buying in.

UNITED STATES DEPARTMENT OF AGRICULTURE (USDA) home loan

A USDA home loan is a zero down payment mortgage available in areas designated by the government as eligible. These loans are issued through the USDA (Rural Development Guaranteed Housing Loan Program) by the United States Department of Agriculture and allow for financing up to 100% of the appraised value in some cases.

UNITED STATES DEPARTMENT OF VETERANS AFFAIRS (VA) Mortgage

This loan type is made available by the VA to members of the military and their families. It is guaranteed by the federal government and the buyer can receive up to 100% financing for the purchase of a home since no down payment is required.

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