95% Jumbo Loan Financing

95 Jumbo Loan Financing

A Florida Jumbo loan is a mortgage loan amount above conventional conforming loan limits. In most of Florida this limit is $417,000 – some locations in South FL (Miami) are even higher.  This standard is set by the two governmental backed enterprises Fannie Mae and Freddie Mac, and sets the limit on the maximum value of an individual mortgage they will purchase from a lender. When Freddie Mac and Fannie Mae max loan limits don’t cover the full amount, it is commonly known as a “jumbo loan”. The current jumbo mortgage starts at loan amounts greater than $417,000. The average interest rates on jumbo mortgages are typically higher than for conforming mortgages. Why is this?  Florida Jumbo loans are typically considered higher risk mortgages which accounts for the higher interest rates. This is because if a jumbo mortgage loan defaults, it may be harder to sell a luxury residence versus a standard priced house. Luxury properties are more vulnerable to market highs and lows. This is one of the main reasons most banks and lenders prefer to have a higher down payment from jumbo loan seekers.

At Five Stars we offer some of the highest loan to value (LTV) Jumbo loans available in Florida.  We currently offer a non-conforming jumbo loans with a minimum down payment of only 5%.  So If you are a FL homebuyer looking for the lowest down payment Jumbo loan, at the lowest interest rate,  be sure to contact us. We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

Below we have listed our 2015/2016  Jumbo loan LTV / Credit requirements. Full Documentation, Owner Occupied Primary homes:

  • 95% LTV – up to $850,000 with 700+ credit score.
  • 90% LTV – up to $1,500,000 with 720+ credit score.
  • 85% LTV – up to $2,000,000 with 740+ credit score.

Contact us to learn about Adjustable Rate Mortgage terms (ARM) or vacation/ second home Jumbo requirements.

Up to 95% Jumbo Loan Financing – Serving all of Florida, including Collier, Monroe, Palm Beach, Dade, Broward County:  West Palm Beach, Miami, Key West, Coral Gables, Homestead, Palmetto Bay, Pinecrest, Pinewood, Sunny Isles Beach, Belle Glade, Boca Raton, Boynton Beach, Delray Beach, Juno Beach, Jupiter, Lake Worth, Lantana, Loxahatchee, North Palm Beach, Ocean Ridge, Pahokee, Palm Springs, Riviera Beach, Royal Palm Beach, Sandcut, South Bay, South Palm Beach, Tequesta, Wellington, Naples, Marco

100 Percent USDA Home Loan

100 percent USDA home loan

The 100 percent USDA home loan provides a great opportunity for home buyers thinking about buying a home in Florida’s rural or suburban locations. Many home buyers are not even aware the USDA / Rural Housing offers government backed home loans through approved USDA lenders in eligible rural locations.  Even more surprising are the areas that are still considered USDA rural eligible  –  many suburbs right outside of Orlando – Tampa – Jacksonville – Sarasota – Tallahassee and Gainesville are still approved for the 100 percent USDA home loan.

Below we will discuss the USDA Rural Development Single Family Housing 502 Guaranteed Loan Program, explain the benefits of this mortgage program and how to determine if you can qualify.

What exactly is a USDA Rural Loan?

The 100 percent USDA home loan program is a program where the federal government will guarantee or “back” a mortgage loan as long as the applicant meets certain criteria. The intent of this program is to encourage rural development, and provide an easy means to obtain mortgage financing with no down payment.  The USDA mortgage is a great solution for those who are looking for 30-year fixed rate loan with no adjustable terms or early pay off penalties.

USDA Mortgage Loan Benefits

There are numerous USDA mortgage benefits especially for first time home buyers that have limited cash saved up. USDA loans offer full 100 percent financing so you won’t have to place a large down payment when buying the home. In addition the home seller can pay all the buyers closing costs.  The USDA offers very competitive 30-year fixed interest rates, along with low mortgage insurance costs. There’s also no maximum home purchase price or loan amount limits with USDA mortgages. Eligible homebuyers qualify for what their debt-to-income ratios allow.

USDA Mortgage Loan Requirements

The USDA mortgage program is open to all homebuyers that meet a number of initial requirements. The home you intend to purchase has to be located in a approved rural area and it cannot be a vacation home (2nd home) or investment property. The home seller can be just about anyone – bank, real estate company, distressed sale, foreclosure, etc. USDA just requires the property address is approved according the USDA loan map here.   As with all loans these days applicants will need a decent credit history – generally a minimum of 620 credit score. Finally, the annual gross income for the entire household must be below the limits USDA sets for each county. The current USDA income limits can be found here.

It’s easy to see that the USDA Rural Development Mortgage program can be an excellent option if you’re planning on buying a home in a more rural or suburban area. Contact Five Stars Mortgage by calling 800-871-2636 with any questions about getting approved. For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  The USDA application process is simple and often done is less than 30 minutes.


Mistakes First Time Homebuyers Make

Florida First Time Home Buyer

First-time homebuyers need a lot of guidance since the territory they are stepping into can be rather tricky. When you are buying a home for the first-time, it’s easy to jump into a decision to get your very first home ownership, but there are many mistakes first time homebuyers make. In order to make sure you are not getting the shorter end of the bargain in your first home-buying experience, you need to know the following things:

Mortgage Pre Approval Before Anything Else

An important part of buying a home is knowing how much home you can afford to purchase.  In addition you need to understand the different loan programs available, and what program best fits your needs.  USDA no down payment, FHA loan, VA mortgage, Conventional loan, etc.  Down payment, loan terms, cash needed – these are all important things first time buyers need to understand.  Furthermore, home sellers will want to know and often times demand buyers are pre approved before considering an offer. Contact us at ph: 800-871-2636 to discuss all the available loan options in your area.

Connect With A Good Realtor

Like your mortgage lender, the realtor is equally as important.  Make sure you are working with a proficient realtor local to your area.  Realtors play an important role in the contract negotiation process. Please reach out to us if you need a Florida Realtor recommendation in your area.

Car after Home is The Wrong Way to Plan

Most of the lenders present in the market analyze each buyer stringently, making sure they are capable of making a commitment they apply for. This means, that you should be able to look good on paper, and having a history of saving up and collecting funds for personal assets like cars are very helpful in this regard. Not getting yourself in to too much debt is also an easy way of getting your application approved since all lenders are essentially looking for long-term security.

Too Much Emphasis on Online Loan Information is a Great Way to Get Misguided

Online websites are generally a good source when you are looking for information, but often, this is not all the information that there is and you need to do a little more. Make sure you have phone conversations with lenders you are dealing with, to comprehensively understand all the details of your agreement. You need to understand the whole home-buying process before searching for homes. Most importantly, always try to deal local. If you are purchasing a home in Florida, it’s wise to only deal with a lender in FL.

Foregoing Home Inspections is Also a Huge Mistake

Many first time home owners try to cut down on some expenditures, like not getting their homes inspected. This may help lower the costs in the beginning, but it’s a very bad practice that actually makes buyers commit home ownership blunders. Getting a home inspected right before or after your purchase gives you a comprehensive view of all the work that has to be done on the property and how much that would amount to. You can reduce your costs in the long run by fixing the problems before moving in, or have the lender contribute for the fund required to fix any problems with your property too.  The costs of a home inspection is normally around $250.00 – $400.00

Questions? We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

Serving all Fla & GA first time buyers –  Orlando, Atlanta, Jacksonville, Tampa FL, Miami, Pensacola, Sarasota, Naples, Lakeland, Ocala Fla, Gainesville

St. Augustine VA Refinance

St. Augustine VA Refinance

Veterans in St. Augustine have some great VA refinance options available in 2015 -2016. Depending on your current needs and equity situation, The VA IRRRL Streamline refinance or 100% VA Cash Out could make sense. Let’s take a closer took below at both options available to homeowners in St. Augustine FL.

VA IRRRL “Streamline” Refinance Mortgage

A VA IRRRL loan is also referred to as “Streamline” refinance. The Streamline Refinance guidelines are very simple and straight-forward with little paperwork – hence the name “streamline” No cash can be taken out by the homeowner with this type of VA refinance. Closing costs and energy efficiency improvement costs can be included into the new loan in most cases. VA IRRRL guidelines do not require the lender to perform a new appraisal or credit, income underwriting as long as the loan that is being refinanced was also a VA guaranteed loan. The is huge because borrowers can be upside down or “underwater” on their home loan, it’s doesn’t matter.  Borrowers that just want to lower their interest rate, change loan term or convert their current VA ARM loan to a VA Fixed rate loan can qualify for the streamline refinance mortgage.  Contact us below to discuss current VA interest rates.

IRRRL streamline loans are not assumable. No cash back is allowed even if you do have equity, just standard closing costs can be included in the new refinance loan. Second loans or home equity loans (HELOC) existing on the property must be subordinated to the new VA first mortgage.  Mortgage interest rates are still near historical lows, veterans can lock-in their rates by opting for a streamline loan offered by a VA refinancing lender. This loans $0 cost option is the primary driver of its popularity among veteran home owners looking for “rate and term” refinance. One should carefully understand the specific refinance option’s guidelines and requirements to choose the appropriate option that fits their financing needs.

VA Streamline (IRRRL) Refinance Guidelines

VA basically provides the backing for the lender providing financing to the veteran and issues its lending guidelines and requirements. A veteran seeking a VA guaranteed home loan must qualify based on the financing lenders underwriting requirements related to income, credit and assets. A lender can choose to enforce their own criteria (overlays) while evaluating a prospective borrower’s financial profile. VA loan eligibility depends primarily on the debt-to-income ratio. The residual income left for the household after paying for all the housing related expenses, monthly debt payments and taxes is used by approved VA lenders to determine the eligibility of prospective seekers of a VA insured mortgage loan. The residual evaluation followed in VA underwriting is much preferred to the plain vanilla debt-to-income ratio used in conventional residential lending guidelines.

When it is required,  it’s the responsibility of a VA mortgage lender to thoroughly assess the eligible veteran’s financial profile and insure it meets the VA residential lending guidelines. A VA loan eligible borrower should collect all the documentation that substantiates these requirements to speed up the loan approval process on both purchase and refinance transactions.

Mortgage lenders that finance residential properties based on conventional mortgage guidelines usually require a borrower to pay for Private Mortgage Insurance when a high loan to value (LTV) home loan is involved. However, VA allows 100% financing with no requirement of PMI on the loans they guarantee. Instead, an upfront funding fee is assessed on all VA purchase and refinance loan transactions. Veterans receiving disability compensation related to the service are exempt from paying the VA funding fee.

Veterans Administration does not handle the loan process or provide the actual funds involved in VA home financing. All factors related to the loan pre-qualification and approvals are exclusively handled by the approved VA lender originating the residential loan. A VA lender also handles all the paperwork and documentation, not VA department. Lenders also pre-qualify, complete loan application, gather supporting financial documents, order the appraisal (when needed)  and title, schedule a closing date and fund the loan. These steps performed during the VA loan approval are comparable to those followed in other government financing like FHA and USDA

The interest rates and discount points charged by lenders for financing VA home loans vary greatly according to applicants credit score and application profile.  Borrowers will have both fixed rate and adjustable rate financing terms available.  VA lending guidelines clearly emphasize the occupancy requirement. Only properties to be occupied as a primary residence by the veteran after purchase can be financed through a VA loan program. The primary residence requirement can be waived for borrowers seeking faster financing through the streamlined VA IRRRL loan.

VA loan benefits can also be reused in the future. The home loan benefits offered by VA do not end after just using them once. Any unused portion of the loan benefit gets carried forward. All state, county and local housing programs or grants have blanket approval from VA. Due to this they can be utilized in combination with VA home loan programs without special permission or review. Grants and programs that are offered to buyers by other non-public entities must be approved by VA before the closing.

The guaranty provided by VA only applies to the lender underwriting and funding the home loan for an eligible veteran. A thorough house inspection is the best way for the buyer to make sure that no significant issues have been overlooked. An appraisal cannot be considered as a substitute for a home inspection as the former a qualified opinion regarding the value of the property based on a rough overview of the property condition, local market and recent sales, while the latter primarily assesses the physical condition of the property by highlighting any issues that needs attention.

VA Cash-out Refinance Guidelines

For St. Augustine VA borrowers that DO have significant equity, a VA cash out refi may be the perfect way to consolidate other high interest debt. 100% VA cash out refinance loan allows a qualifying veteran to payoff high interest debt credit cards, college loans and any other debt. One may also use refinancing to make further home improvements to increase their residential home value. A number of VA lenders process these loans quickly and efficiently according to the refinancing guidelines set by Veterans Administration. The VA cash out refinance program will require a new appraisal to verify the property current value.

VA cash-out refinance guidelines require that the veteran still occupy the property as their primary residence. When sufficient home equity is present, the owner can take out up to 100% of the homes value.  This loan can also include closing costs and other fees. As long as the LTV requirement is met, the seasoning of the loan may not be needed. For exact VA refinance guidelines, Contact us below 7 days a week.

Serving all of St. Johns and surrounding counties –  Crescent Beach, Fruit Cove, Hastings, Orangedale, Ponte Vedra, St. Augustine, Julington Creek, Vilano Beach

Questions about starting the VA mortgage process?  VA Home owners in St. Augustine – St. Johns County can submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Or just call ph: 800-871-2636

St. Augustine VA Refinance – Five Stars Mortgage News

Gainesville 100 percent USDA Loan –

Gainesville USDA Loan

First time home buyers around Gainesville should take note that most of Alachua County is still eligible for the 100 percent USDA Rural Housing program.  The towns of Alachua, Archer, Hawthorne, High Springs FL, La Crosse, Micanopy, Newberry and Waldo are all approved for $0 down home financing.   For those that haven’t heard of this great government backed home loan, let’s take a closer look.  Basically the United States Department of Agriculture ( USDA & Rural Development) offers 100% home loans in approved rural locations throughout Florida.  USDA Rural Housing is a great fit especially for first time home owners that have little cash saved up, after all it’s the last 100% home loan in Florida.  The USDA program has invested almost $20 billion in 2014 to help nearly 140,000 families nationally buy and improve their homes. The program is designed to expand Florida’s rural communities by making home ownership affordable. USDA offers Alachua County home buyers low 30 year fix interest rates with no down payment needed.  Many buyers are surprised to find just how the application process is. For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

USDA Rural Housing home loans are government backed and typically used by low to medium income households to purchase homes in eligible “rural defined” locations throughout FL.  Great for first time home buyers, the USDA home loans are available in all 50 states to qualified applicants. The general guidelines for the loan program are the same throughout all eligible areas in the US.

There are a few different types of USDA mortgage programs interested home buyers should be aware of:

Direct USDA program:  These loans are processed directly by the local USDA service office. These loans are strictly for very low income households and income thresholds vary by region. To apply, contact your local USDA Rural Housing office.

USDA 502 Guaranteed program:  These loans are catered to more of a average household incomes. Most USDA loans fall into the 502 Guaranteed program.  Due to the higher volume, the 502 loans are processed and underwritten only by approved USDA lenders and banks, and are insured through the USDA’s Rural Development program. Contact us at ph: 800-871-2636 if you would like to apply. The 502 Guaranteed program allows home buyers to get a low interest rate, even without a down payment.

USDA Interest Rates & Terms

The standard term is a 30 year fix with interest rates that are comparable with any other 30 year government mortgage programs. Because of the terms of a USDA home loan, payment are lower than most other loans on the market today. There is no maximum loan amount. There is a annual fee that is 0.5% of the loan amount per year broken down into 12 monthly payments – monthly PMI.

USDA Loan Eligibility Factors

First and foremost the home being purchased must be located in a USDA approved area – Most of Alachua County is approved. Alachua, Archer, Gainesville, Hawthorne, High Springs, La Crosse, Micanopy, Newberry, Waldo FL are approved locations.  Basically the immediate area around Gainesville is the only location in the county NOT approved as of 2015.  As for the seller of the home, it can be anyone, the home just needs to be located in a USDA approved area.

Second – the income for the household must be below the set USDA income limit here.

USDA Loan Approval Criteria

To be eligible the applicants middle credit score must be at least a 620 with no major financial issues in the last 4 years – bankruptcy, short sale, foreclosure, etc. The standard debt to income (DTI) ratios for the USDA RD mortgage is 29%/41% of the gross monthly income of the applicants. USDA will sometimes allow slightly higher ratios with strong compensating factors. There are no guidelines on the amount of applicants per loan, however,  non occupying co-borrowers are not allowed, therefore, applicants must provide evidence that they will occupy the home.

Property / House Requirements

The USDA’s Rural Development home loan program requires that the home being purchased meets standard HUD handbook guidelines 4150.2 and 4905.1. These guidelines are typical for all government backed loan like FHA or VA. Any problem with the home being purchased that would impact safety and overall livability could be an issue.  Small issues are not a concern and are always expected. USDA Rural Housing is more concerned with major safety issues – think major electric issues, HVAC, roof issues, etc. Existing manufactured housing is not permitted unless it is already financed with an USDA loan. However, most lenders, use included, will not process mobile/ or manufactured housing loan requests in any capacity.

Contact Five Stars at ph: 800-871-2636 with any questions about applying for a USDA loan.  Serving – Gainesville, Alachua, Archer, Gainesville, Hawthorne, High Springs, La Crosse, Micanopy, Newberry, Waldo FL

Orlando VA Streamline IRRRL Refinance Loan

Orlando VA IRRRL Refinance

The Orlando VA Streamline IRRRL Refinance Loan program is designed specifically for veterans, and is a government help program to aid homeowners who are underwater and have kept up with their mortgage obligations. The best feature of the program is the fact that it enables veterans who fulfill the eligibility criteria to refinance their house into a lower interest rate with ease.

What is VA IRRRL Program

Also known as VA “Streamline Refinance” this mortgage refinance program is offered by VA approved lenders in Florida, and is guaranteed by the VA if the mortgagor (homeowner) defaults on loan payments. This is a popular refinance option because the program helps streamline the qualification process and limits the amount of paperwork involved. Other notable features of VA loans include flexible requirements, no need of private mortgage insurance (PMI), and highly competitive interest rates.

VA IRRRL Basics – Orange County, Orlando

The VA Mortgage Interest Rate Reduction Refinance Loan (IRRRL) brings the VA mortgage interest rate low by refinancing the existing VA Florida mortgage loan. There could be a significant reduction in monthly mortgage payment if lower VA mortgage interest rates are obtained.

  • Loan assumptions in VA IRRRL are not acceptable.
  • It is necessary that the homeowner has timely mortgage payments for the last twelve months, and must be current at the time of refinancing to obtain this loan.
  • IRRRL refinance can be done with zero out-of-pocket money by adjusting all costs in the new loan,  or by creating the new loan at a slightly higher interest rate to make sure the lender pays the cost.
  • The homeowners can’t accept any cash back. Homeowners that do have some equity and want to “cash out” some money can learn about the 100% VA Cash Out here.
  • Most the time a new appraisal report or termite WDO report of the house is necessary.
  • This refinance program is very “streamline” in regards to paperwork and time.  Easy paperwork with fast closing times.

IRRRL Eligibility Criteria

The eligibility criteria of VA IRRRL are similar to the criteria for a home purchase VA loan. Normally, a service of more than 90 consecutive days of active duty during wartime or 181 days of service during peace time is required. The National Guard and Reservists veterans must have served for six years minimum to be eligible for this loan. Conditionally, the surviving spouses of the veterans who die in the line of duty, or from a service related disability may also be eligible for VA IRRRL. Also, in order to receive a VA IRRRL, you must have an existing VA loan.  Finally,  a new Certificate of Eligibility (COE) is not required.

Advantages of the VA IRRL Program

Listed below are some of the advantages of the VA IRRRL program:

  • Interest rates are low, depending on your original loan rate, it may be possible to save a lot.
  • Homeowners can often times skip a few mortgage payments while going through the refinance process.
  • Even if the property values are going down, no appraisals or inspections are required.

Call us today at ph: 800-871-2636.  We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.

FHA Streamline Refinance Mortgage

Florida FHA Streamline Refinance


An FHA loan is defined as a loan that is insured by the Federal Housing Administration. In principle, the federal government covers loans for the lenders that are FHA approved to make sure their risk of loss is reduced if a borrower fails to pay their mortgage payment.

FHA Streamline Refinance on mortgage, in a nutshell, is the easiest way to refinance an FH loan. What differentiates between a traditional refinance and an FHA refinance?  The streamline allows the borrower to refinance without going through all the hurtles often seen with other refi programs. A new appraisal is often times not required as loan to value (LTV) is not important.  Let us take a look at FHA Streamline Refinance in detail:

What is an FHA Streamline Refinance

The Florida FHA Streamline Refinance is a unique refinance program that is solely available to homeowners with FHA insured mortgages. This is a “streamline” process as the name implies meaning less verification’s, less paperwork, no appraisal or home inspection. The program is formulated to reduce a homeowner’s monthly mortgage payment, or as a mean to refi out of an adjustable rate mortgage (ARM)  Advantages the FHA Streamline Refinance Mortgage

Eligible residents of Florida that currently have a FHA mortgage should remember a few things when applying for the program:

  • You are not obligated to go through the full normal mortgage paperwork process, like when the home was originally purchased. The only requirement is a timely mortgage history.
  • You are not required to verify as much in regards to income and assets.
  • You don’t have to pay any closing costs out of pocket. Often time the costs can be included in the new loan or paid by the lender in certain cases.
  • You are not obliged to pay for a new appraisal, home inspection, etc.  This saves in closing costs.

Why you should go for it?

This program is your government supported bailout. FHA Streamline Refinance rewards a responsible and hardworking homeowner by allowing historically low interest rates even if they are underwater on their mortgage, provided it’s not due to their own fault. These guidelines change often, so contact us for the latest requirements.  Homeowners also want to be aware of recent FHA mortgage insurance changes,  FHA mortgage insurance is going down for new all loans.  Low FHA interest rates together with the newly reduced mortgage insurance costs makes this a great time to refinance.

Call and communicate with one of the qualified Florida Mortgage professionals 7 days a week by submitting the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

Serving:  FL & Georgia –  Tampa FL – Orlando – Jacksonville – Miami – Tallahassee – Gainesville – Ocala – Daytona Beach – St. Augustine – Spring Hill – Pensacola – Panama City – Destin – Sarasota – Naples – West Palm Beach – Deerfield Beach – Pembroke Pines – Fort Pierce

New USDA Rural Pilot Refinance

USDA Pilot Refinance

USDA Pilot Refinance


The new USDA Rural Pilot Refinance program is now available to eligible Florida borrowers who qualify to refinance their current USDA mortgage loans. This limited time program by Rural Housing ( RD) is offered through approved lenders and brokers and designed to give home owners a simple “streamlined”  way to refinance into lower interest rates.  The best part is the USDA Pilot program doesn’t require a new appraisal report, or home inspection report.  So homeowner that have zero equity, or even underwater home values can apply!  In addition to this the lender does not need to submit a new credit report except for determining the interest rate the home owner receives.  USDA mortgages, like other home loans, have tiered interest rates based on credit score. Generally credit scores over 720 receive the lowest USDA interest rates, while credit score under 640 may be 0.25- 0.5% higher rates.

USDA Refinance Benefits:

  • Lower payment
  • Rate is lowered by a minimum of 1%
  • Closing costs can be financed / added to the loan so NO out of pocket costs to the home owner at closing
  • No appraisal or home inspection needed – saves on closing costs
  • Borrower does not have to credit qualify or debt ratio

Eligible Borrowers For USDA Pilot Refinance:

  • Home owner must currently have a USDA 502 Guaranteed Loan (regardless of original lender)
  • Meet current household income eligibility requirements see below ( this rule also applied when the loan was originally obtained)
  • Reside in an eligible rural area or an area that was eligible at the time of the original loan closing
  • Have made timely mortgage payments for the 12-month period prior to the refinance.
  • If you do have equity in your home, you cannot “cash out” any equity

Florida USDA Rural Income limits 2015

In regards to income limits – please add $480.00 for each dependent in the household. Please also note this apply to all income producing household members – even if they are NOT applying for the loan. Contact us if your income is close to the limit, as there are other deductions for certain child care and elderly. 

Again, this program is strictly for home owner that currently have a USDA home loan. If you have another type of home loan like FHA or VA, please contact us about the FHA streamline or VA IRRRL refinance. We can be reached Ph: 800-871-2636. Home owners can also send in the short “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.

New USDA RD Fee Chart 2015 -2016

2016 USDA Guarantee Fee


The new USDA RD Guarantee Fee structure has been set in regards to Rural Housing loans. The new Guarantee Fees start October 1, 2015 and will  be effective for Single Family Housing, 502 Guaranteed loans in fiscal year of 2016.  The new upfront guarantee fee will change from 2 percent of the loan amount to 2.75 percent of the loan amount.  The current annual fee monthly PMI of .50% will remain unchanged.   This annual fee is actually a monthly charge that USDA collects on all loans – think of this similar to private mortgage insurance or PMI. The upfront guarantee fee is a one-time fee that is charged by all government mortgage programs ( USDA, FHA, VA) and commonly rolled into the borrowers total loan amount.


Current guarantee fee on a $175,000 loan =  $3,500.  Total adjusted loan amount with guarantee fee = $178,500

New guarantee fee on a $175,000 loan starting 10/1/2015 = $4,812.50. Total adjusted loan amount with new guarantee fee = $179,812.50

This is a pretty big increase and will start for any USDA loans obligated on October 1, 2015 through September 30, 2016. The new higher fee’s will impact both USDA purchase and USDA refi programs (Pilot, Streamline, etc)

It’s a good idea of buyers / lenders to insure their package is received by USDA and in the system no later than the 2nd week of September in order to stay at the current 2% Guarantee Fee.  Keep in mind, it generally takes the lender a 2-3 weeks to get a package ready enough to sent to USDA for final approval.

Questions? We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

New USDA RD Fee Chart 2015 -2016

Please note: If you have questions regarding an existing USDA loan already in process with another mortgage company,  you will need to speak to them directly for status, etc.

97% Conventional Program – 3% Down Payment


Five Stars MortgageIn the golden days of the real estate boom, 97% Conventional Mortgage Financing was readily available for South Florida home buyers and the programs weren’t so hard to find. Many mortgage lenders were even offering 100% financing in locations like West Pam Beach and Broward County which worked well for a while. Then the mortgage industry experienced bad declines the new rigid mortgage regulations changed everything and all but eliminated low down payment home financing options.

97% Conventional Mortgage Financing starting popping back up around December 2014 by Fannie Mae, through My Community Mortgage product and for a standard non-MCM Conventional Loan Product. Meant to help first time homebuyers who may not have the resources for a larger down payment, the program allows them to receive loans requiring little to no down payment. It is also great for homeowners whose homes have lost value since purchase but who are otherwise ineligible for the Home Affordable Refinance Program (HARP).

This program makes mortgages more accessible and affordable. Fannie Mae offers guidelines and tools that enhance the benefits of 97% Conventional Mortgage Financing. The flexibility of the program is what distinguish it from other conventional mortgage financing in the market.

‘97% Conventional’ LTV Highlights

  • The program provides Maximum loan to value (LTV), Combined Loan to Value (CLTV), and High or Home Equity Combined Loan to Value (HCLTV) is 97%.
  • Manufactured homes are not eligible for 97% LTV loans.
  • Cash gifts may be used for down payments and reserves.
  • It limits the upfront monthly costs of mortgages.
  • It supports the long term success of buyers.
  • Private Mortgage Insurance (PMI) cancels when the loan reaches 80% LTV.

97% Conventional LTV Home Buying Requirements

  • Only 30-year fixed rate mortgages are allowed.
  • Only available for low to moderate income families.
  • The program requires a minimum of 3% down payment.
  • May require home buyer education prior to loan closings.
  • Borrowers are required to pay Private Mortgage Insurance (PMI).
  • At least one of the borrowers on the loan must be a first time home buyer.
  • The loan must be used for a 1 unit primary residence (including Condos and PUDs).
  • Borrower must score more than 620 on the Loan Level Price Adjustment (LLPA) chart.

Other than these features, 97% conventional mortgage financing is quite similar to other conventional mortgage types. But because 97 %conventional mortgage insurance goes away at 80% LTV, it can become a better value overtime, especially if you have high credit scores. The higher your credit scores, the cheaper 97% conventional mortgage funding will be. You can check your eligibility for the 97% conventional program and buy your dream home with a down payment of just 3%.

Homebuyer that have questions or maybe want to get pre approved can submit the Request Information form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

97% Conventional Program – 3% Down Payment – serving South Florida including – Palm Beach County – Belle Glade, Boca Raton, Boynton Beach, Delray Beach, Highland Beach, Hypoluxo, Juno Beach, Jupiter, Lake Worth, Lantana, Loxahatchee, Manalapan, Palm Beach, Palm Springs, Riviera Beach, Royal Palm Beach, South Bay, South Palm Beach, Tequesta, Wellington and West Palm Beach. Broward County – Coconut Creek, Cooper City, Coral Springs, Dania Beach, Davie, Deerfield Beach, Fort Lauderdale, Hallandale Beach, Hillsboro Beach, Hollywood, Lauderdale Lakes, Margate, Miramar, Oakland Park, Parkland, Pembroke Park, Pembroke Pines, Plantation, Pompano Beach, Port Everglades, Sunrise, Tamarac, West Park, Weston