Bank of Southside Virginia - Home Mortgage

Bank of Southside Virginia

211 Jarratt Avenue
Jarratt, VA 23867-0386
Phone: (434) 535-8545

TYPES OF MORTGAGE LOANS

FIXED RATE

As the most popular mortgage program for homebuyers, a fixed rate mortgage offers the stability and consistency of predictable monthly payments for the life of the loan. It may be a good choice for people who expect to live in a home for an extended period of time, or who want to lock in current low interest rates. With a fixed rate mortgage, payments remain constant, allowing you to plan and budget without factoring potential interest rate fluctuations.
Features of The Bank of Southside Virginia Fixed Rate Mortgage Programs

* Standard 10, 15, 20, 25, 30 and 40-year repayment terms
* Jumbo 15 and 30-year terms for loans over $417,000.00

ADJUSTABLE RATE

With a typically lower mortgage payment, Adjustable Rate Mortgages (ARMs) are an increasingly popular alternative to the conventional fixed rate mortgage for homeowners trying to get the most home for the lowest payment. The downside of the lower payment is a potential increase in the monthly payment over time, if interest rates rise. Therefore, ARMs are most appropriate for people who anticipate an increase in their income during the life of their loan, or who plan on moving in five to seven years.
Features of The Bank of Southside Virginia Adjustable Rate Mortgage Programs

* Standard 1, 3, 5, and 7 year initial fixed interest period with 30 year terms
* Many ARMs have a "cap" on the amount the mortgage can rise, to protect you
against dramatic increases in interest rates

INTEREST ONLY OR INTEREST FIRST
These types of loans offer the ability to pay interest only for a period of time and then the loan converts to principal and interest payments. These types of loans may be appropriate for someone who plans on moving in 5 to 7 years.

VA

Veterans Affairs (VA) Loans

Available to veterans of the armed services, active-duty personnel, reservists, and their spouses, VA mortgages require no down payment and offer some of the easiest qualifying requirements of any home loan. To find out if you qualify for a VA loan, ask your loan officer for an 1880 form for you to complete. After you have completed this form, take it and your discharge papers (or DD214) to your local VA office to determine your eligibility. Active military personnel may also be eligible for a VA loan. http://www.homeloans.va.gov/

VHDA

(Virginia Housing Development Authority)

VHDA is a private agency established in 1973 that sells bonds to fund loans for Virginians who are first- time homebuyers to enable them to purchase affordable housing. Interest rates on VHDA loans are typically slightly lower than loans funded by other investors. Income limits and other restrictions are imposed on most VHDA funded loans. A first-time homebuyer is defined by VHDA as someone who has not owned real estate in the past three years. While most loan programs are aimed at first-time homebuyers, a few new programs have been developed to meet the needs of current homeowners. speedbump-vhda.htm