Mortgage Lender Serving Bend, Oregon
A2Z Home Loans
Finding the Right Mortgage Lender and Mortgage Broker in Bend, Oregon
There are many mortgage lending options available, which can make it confusing when trying to choose the right one for you. From conventional conforming loans, FHA, VA, and USDA, the “right” answer isn’t always black and white. Plus, with different mortgage brokers in Bend, OR, offering different rates, it can be hard to tell when you really are getting the best loan for your unique situation. That’s why it is critical to choose a mortgage broker and mortgage lender in Bend, Oregon, who understands the market, the options available, and your unique needs.
Andy Zook, owner and founder of A2Z Home Loans, has been helping Oregon homebuyers finance and refinance their homes for almost two decades. Andy has the tools and connections without the added expenses of a large mortgage brokerage. This means his costs are lower than competitors. If you are looking for a mortgage lender in Bend, Oregon, or anywhere else in the state, don’t hesitate to give him a call and see what the best options are for you. He can’t wait to meet you.
Which Mortgage is Right for You?
Conventional Conforming Loan
A conventional mortgage loan is a “conforming” loan, which simply means it meets the requirements for Fannie Mae or Freddie Mac (government-sponsored enterprises that purchase mortgages from lenders and sell them to investors).
Conventional mortgages are the most common mortgage in the U.S. (82% conventional vs 18% FHA, VA & USDA).
Typically, conventional loans offer lower costs and more attractive rates than other loan types. If you meet credit score requirements and want a down payment of as low as 3%, a conventional mortgage may be the best solution for you.
FHA Loan
An FHA loan is a type of mortgage insured by the Federal Housing Administration (FHA), a government agency. These loans are designed to make it easier for people with lower income or credit scores to purchase a home. The FHA sets standards for the loans it insures, but the loans themselves are made by private lending institutions.
FHA loans offer the ability to get approved with a credit score that is lower than conventional loans allow and have a minimum down payment of 3.5%. FHA loans also allow higher debt-to-income limits than conventional loans. As such an FHA loan may be the appropriate loan program for some first-time home buyers or those with past credit challenges.
VA Loan
While conventional loans are available to anyone who can meet the requirements, VA loans are designed to help veterans, active-duty military members, and eligible surviving spouses purchase a home.
The requirements for VA loans are similar to conventional loans but they have a few excellent benefits. Typically, rates for VA loans are lower than those for conventional mortgages and do not require a down payment. While VA loans do not have monthly mortgage insurance, they do have a one-time funding fee ranging from .5% to 3.6% of the loan amount. This funding fee is waived for veterans with a service-related disability.
VA loans are an outstanding loan option for those who are eligible.
USDA Loan
A USDA loan, also known as a Rural Development loan, is a type of mortgage guaranteed by the USDA. These loans are designed to help low- and moderate-income individuals purchase a home in rural or suburban areas.
USDA loans do not require a down payment. Mortgage rates and mortgage insurance costs for USDA loans are often more favorable than conventional or FHA offerings, but it can be challenging to qualify for the program. The home must be located in a USDA-designated area. Generally speaking all of Central Oregon, except within the Bend city limits, is eligible for the USDA loan program.
See the USDA property eligibility map.
Additionally, a family (up to four) cannot have an income that exceeds 115% of the median household income. In most of Oregon that income limit is $103,500. This figure is higher if you have a family larger than four.
View the USDA income limit tables.
USDA loans have stringent debt-to-income limits which can be a hurdle for families wanting to buy in higher costs areas. If you can meet the income, geographical, and debt ratio requirements, the USDA loan offering is tough to beat.
Refinancing Your Current Loan
The goal of refinancing is typically to lower your monthly mortgage payment, pay off your loan faster, or to take cash out of the equity of your home.
There are several reasons you may choose to refinance your mortgage. One of the most common reasons is to take advantage of a lower interest rate. When interest rates fall, refinancing can allow you to secure a lower rate on your loan and reduce your monthly mortgage payment. Another common reason to refinance is to shorten the loan term, which will result in paying off the loan faster and save on interest over the life of the loan.
Borrowers can also refinance to change the type of loan they have, for example, from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or from a government-insured loan to a conventional loan. Additionally, borrowers can refinance to cash out some of the equity in their home for home improvement projects, debt consolidation, or to pay off other expenses.
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“I am a leading local Realtor and have worked together with Andy Zook for over 14 years. I find that Andy is exceptional with his communication skills throughout the loan process. Andy makes himself available to Realtors and clients in the evenings and on weekends. My home buyers appreciate Andy's professionalism and his attention to detail. Andy and his team consistently meet essential timelines to ensure a successful home closing. It is always a pleasure to work with Andy Zook and A2Z Home Loans!”
— DANA F.
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