Mortgage types

Starion offers many different kinds of mortgages to fit your needs. Your Starion mortgage banker can help you choose the mortgage that is best for you.

Fixed rate mortgages

Starion offers 10, 15, 20 and 30 year fixed rate mortgages. With a fixed rate mortgage, your interest rate and monthly principal and interest (P&I) payments remain the same for the life of your loan, though your escrow payments may change. Your loan can be a conventional, government VA or FHA fixed-rate loan:

  • Conventional loans
  • FHA loans
  • VA loans

A fixed rate mortgage lets you lock in an interest rate that will remain the same for the life of the loan. This provides stability and simplifies your personal budgeting. Fixed rates can be advantageous if you plan to stay in your home for a long time.

What to consider

  • The amount of interest you pay is higher on longer-term loans.
  • On a shorter-term loan. Monthly principal and interest is most often higher than a longer-term loan.

Adjustable rate mortgages (ARM)

Starion offers 5/1 and 7/1 ARMs, meaning your interest rate and monthly principal and interest payments stay the same for 5 or 7 years and adjust annually thereafter. ARMs have lower initial interest rates, but at the end of the initial loan term, the rate will adjust to match current market rates. There are interest rate caps that limit how high your interest rate can go. ARMs provide flexibility if you expect future income growth or if you plan to move or refinance within a few years.

What to consider

  • Monthly principal and interest payments may increase as interest rates change.
  • Monthly principal and interest payments may change every year after the initial term (5 or 7 years) is over.

Government loans

If you are a veteran or qualify for other programs, you may be able to lower closing costs or have other special provisions through Federal Housing Agency (FHA), Department of Veteran’s Affairs (VA), Rural Development loans or other special loan programs. Your Starion Mortgage Banker has more information on these programs.

FHA loans

  • Available in a variety of fixed-rate and adjustable-rate loan options.
  • Has down payment options as low as 3.5%.
  • May allow you to use a gift or grant for all or a portion of the down payment or closing costs.
  • Lets you add features such as a temporary buydown.

FHA loan benefits

  • Requires less cash up-front for your down payment and closing costs.
  • Available for all income levels.
  • Allows a new buyer to take over the loan if you sell your home (subject to loan approval).
  • Allows a co-applicant to help you qualify even if the person doesn't live in the home.

Considerations

  • Typically have to pay up-front and monthly FHA mortgage insurance premiums.
  • Can normally only have one FHA mortgage at a time.

VA loans

  • Provides financing for qualified veterans, reservists, active duty personnel or eligible family members.
  • Available in a variety of fixed-rate and adjustable-rate loan options.
  • Has low and no down payment options.
  • Allows closing costs to come from a gift or grant.
  • Lets you add features such as a temporary buydown.

VA loan benefits

  • Provides a wide range of rate, term and cost options.
  • Doesn't require monthly mortgage insurance.
  • Provides the potential for minimal out-of-pocket expenses with seller contributions.

Considerations

  • Typically have to pay a one-time VA funding fee that can be rolled into the loan amount.
  • Financing is for your primary residence only.

Rural Development loans

  • Offered through U.S. Department of Agriculture.
  • Assists low to moderate income rural homebuyers.
  • Loan amount may not exceed 100% of the appraised value.

Rural development loan benefits

  • 100% financing, no down payment is required.
  • Flexible credit guidelines.
  • No maximum purchase price.

Considerations

  • Fixed 30-year interest rates apply.
  • Applicants must purchase a home within eligible rural areas.
  • Household income must not exceed established limits where the home is located.

Jumbo loan

Also known as a non-conforming loan, a jumbo loan is above limits set by the federal government. It costs more than a standard loan, so expect higher interest rates. The home must be located in a neighborhood that can support higher-level mortgages.

Bridge loan

If you’re buying or building a new home, a bridge loan lets you complete the purchase and closing process before you sell your current home. It’s a short-term financing tool which is expected to be paid back relatively quickly.

Lot & construction

When you are having a home built, this loan is designed for the special needs you'll encounter with new home construction. Generally, a lot loan can be used to take advantage of low rates or the availability of a specific property, while a construction loan is used to build on that lot.

Are you a first-time homebuyer?

If you need assistance with purchasing or building your new home, Starion offers a first-time buyer assistance program. For more information on these programs, contact your Starion Mortgage Banker.

You can also visit these state websites:

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