Mortgage Loans Made Simple
Established in 1991, in Hamilton, Alabama, we are a non-depository, full-service mortgage bank grounded in a commitment to building lasting relationships. Through direct approval with Fannie Mae, Freddie Mac, Ginnie Mae, FHA, USDA, and VA we offer a full set of mortgage products to meet many lending needs. With an innovative team trained to be the best in the business, CIS Home Loans is the best choice when you are looking for a mortgage product. What sets CIS Home Loans apart?
- CIS’ core management team has over 175 years combined experience in the Mortgage Banking industry.
- We are licensed to originate mortgage loans in 26 states across the United States.
- Direct access to your loan, through a single point of contact, is given from application to closing.
- Credit decisions made timely and in-house.
CIS can assist prospective home buyers with the following mortgage types:
USDA - Rural Development
Are you looking to purchase a home outside of a city? You may be able to enjoy 100% financing for a home that is designated in a rural area through the United States Department of Agriculture (USDA) loan program. A qualified buyer can purchase a home without making a down payment. The USDA uses a relatively liberal definition of “rural,” and many small towns, suburbs and exburbs (denser inner suburbs outside major metropolitan areas) qualify as rural according to the USDA’s location criteria.
Other minimum USDA loan eligibility requirements include:
- You must be a citizen or permanent legal resident of the United States
- The property must serve as your primary residence
- A minimum credit score of at least 640 and no late payments or collections in the previous 12 months
- Proof of a stable, dependable source of income
- An adjusted household income not exceeding 115% of the area’s median income
If you are an Active Duty or Retired Military member of Veterans Affairs (VA), the VA loan program offers special home buyer benefits that may be ideal. As with USDA mortgages, VA home loans typically do not require a down payment. While there are no specific minimum credit score requirements, many VA home loan lenders use a FICO score of 620 as a benchmark. Lenders will also view the credit report to evaluate the borrower’s payment history.
Another factor when assessing VA loan eligibility is the borrower’s debt-to-income ratio. DTI is the percentage of the monthly income required to make the minimum debt payments. To qualify for a VA mortgage, the DTI should not exceed 41%. The property must also be deemed safe, sanitary and structurally sound.
If you are an active military member, the service requirement is a minimum of 90 days of continuous service. For veterans, the guidelines are at least 90 days in wartime and 181 days during peacetime. Surviving spouses of military members who died while serving or as the result of a service-rated disability may meet the criteria if they have not remarried.
The Federal Housing Administration (FHA) loan programs offer low down payment options for financing a primary residence. These home loans enable buyers to pay only 3.5% of the purchase price upfront. As an example, for a $200,000 property, the minimum payment requirement would be $7,000. The borrower can receive up to 100% of the down payment amount as a gift. On the other hand, the threshold for conventional loans is less than 20%.
Eligible properties include single-family and multi-family homes located in the United States and its territories. Homes intended for business or investment purposes do not qualify. Other FHA loan eligibility requirements include:
- A FICO score of at least 580 (borrowers with a 500-579 score must make a down payment of at least 10%)
- DTI of less than 43%
- Borrowers making a down payment of less than 20% must pay an upfront and annual mortgage insurance premium (MIP), which protects the lender in the event of default
While conventional loans come with term options of 10, 15, 20 or 30 years, FHA loans are only available with terms of 15 or 30 years.
Conventional - Fannie Mae & Freddie Mac
Enjoy the confidence of knowing your monthly payment and interest rate will not change for the term of your loan with fixed-rate conventional mortgages. Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are government-sponsored home mortgage companies created by Congress in 1938 and 1970, respectively.
Neither Fannie Mae nor Freddie Mac issues or services loans. Instead, they purchase mortgages from lenders to hold or package as mortgage-backed securities they can then sell. Lenders use the funds to originate loans to prospective buyers.
While buyers don’t deal with Fannie Mae or Freddie Mac directly, these programs benefit them in several ways. They help make the mortgage market more stable and liquid, enabling lenders to offer more affordable loans. They also offer various consumer protection programs to ensure mortgage products and practices serve the best long-term interests of borrowers.
Conventional Fannie and Freddie loan products require a minimum FICO score of 620 and a DTI of no more than 45%. Borrowers must also carry private mortgage insurance when making a down payment of less than 20%.
CIS is a full-service mortgage company that strives to help individuals and families buy the home of their dreams. We take pride in our ability to be transparent with every client. We also make customer service a high priority. You can always reach our loan officers via our online loan portal or by phone whenever you have questions.
We offer some of the most competitive home mortgage rates in the country, which could save you thousands of dollars over the term of your loan. Our loan process typically takes around 25 days from origination to closing so you can start enjoying your new home right away.
Contact CIS today to learn more about the available home loan types and start the application process!