FAQ - Frequently Asked Questions

The following FAQ is divided into two sections: Domestic Loans, for borrowers who are either U.S. citizens or permanent resident aliens; and International Loans, for borrowers who are foreign nationals or are non permanent resident aliens.

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Domestic Loan Program - FAQ

Q. How do I know which mortgage program is best for me?
A. InterBanc Mortgage has professional loan officers that can help determine which loan type is best for your needs.
 
Q. How much down payment do I need?
A. Down payment varies on loan types. VA requires 0 down, FHA requires as little as 3% down and conventional loans require as little as 5% down (or 3% if you are a first time home buyer), depending on your circumstances.
Q. What is a Conventional loan?
A. Conventional loans are loans that are not obtained by FHA or VA but are typically held by institutional investors.Top
Q. What is an FHA or VA loan?
A. An FHA loan or VA mortgage is a loan insured and guaranteed by the respective agencies. These programs allow lenders to arrange financing for the borrower with a minimal down payment. These programs require a mortgage insurance premium for FHA or a funding fee for VA to insure the mortgage. These fees may be paid at the time of closing out-of-pocket or financed by increasing the loan amount.
Q. What is loan to value?
A. Your loan to value, or "LTV" is a ratio that describes the amount of your loan compared to the sales price. For example, if you borrower $150,000 on a property valued at $200,000, then you would have an "LTV" of 75%.
Q. What is private mortgage insurance?
A. Private mortgage insurance is required on conventional loans and may allow you to purchase a home with as little as a 5% down payment. PMI is usually required if your loan to value is 80% and above. A monthly insurance fee is paid.
 
Q. What is the difference between a fixed rate and an adjustable rate mortgage?
A. A fixed rate mortgage is offered with an interest rate that remains unchanged for the term of the loan. Adjustable rate mortgages, also referred to as "ARMs" or variable rate mortgages have rates that change at a predetermined interval during the term to reflect general interest rates.
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Q. What is "PITI"?
A. PITI is Principal, Interest, Taxes and Insurance which are the components of your monthly mortgage payment.
 
Q. What are escrows?
A. Escrows are funds collected with the borrower's monthly payment and accumulated to pay for items as property taxes and hazard insurance when they come due. Escrows are also collected at closing to start the escrow account.
 
Q. What if I had credit problems?
A. You will need to explain the circumstances. If you have overcome the problem and kept up with your obligations on a timely basis for a year or more, most lenders will accept your application.
 
Q. What are "points"?
A. Fees used to adjust the yield on a mortgage to current market conditions are called points, sometimes referred to as loan discount points. The relationship between points paid and the interest rate on the mortgage is that as the points increase the interest rate decreases. A point equals 1 percent of the mortgage amount. For example, 1 point on a $100,000 mortgage is $1,000.
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Q. What is a Construction to Permanent Loan Program?
A. This is a one-time close loan program which finances the construction of homes by providing both the construction funds and the permanent loan all in one closing. During the construction period, interest is only charged on the amount of the loan actually outstanding. When the home is completed the permanent loan begins.
 
Q. What is a No Income Verification Loan?
A. A No Income Verification Loan is when you simply state your income on your loan application but no verification of the income is required. Your application is analyzed based upon your stated income.
 
Q. What is meant by "reserves after closing"?
A. Reserves represent a required amount of PITI payments remaining after closing in the borrower's bank accounts.

Q. What is a permanent resident alien?
A. A permanent resident alien is an individual who holds acceptable evidence of permanent residency issued by the Immigration and Naturalization Service (INS).
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Q. What is property appraisal?
A. An appraisal is an estimate of the value of the property you intend to purchase or refinance.
Q. What are taxes?
A. Taxes are fees determined by the county or city to cover operating costs of local government and the amount is based on the assessed value of the property.
Q. What is insurance?
A. The insurance required on the property is hazard insurance. This insurance coverage compensates for physical damage to the property by fire, wind or other natural disasters.
 
Q. What is A.P.R. ?
A. A.P.R. is the rate of interest that represents the relationship of all of the finance charges (interest, loan fees and discount points) to the amount of the loan. The A.P.R. is not the interest charged on the loan.

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International Loan Program - FAQ

Q. How do I know which mortgage program is best for me?
A. InterBanc Mortgage has professional loan officers that can help determine which loan type is best for your needs.
Q. What is a Foreign National?
A. A Foreign National is a citizen of a country outside of the U.S. who periodically visits the U.S. and is buying a home in the U.S. A Foreign National is not a U.S. citizen.
Q. What type of properties can Foreign National's purchase?
A. Foreign Nationals may purchase newly built or existing homes or condominiums for vacation home use or investment purposes.
 
TopQ. What type of eligibility must a Foreign National have to obtain a mortgage?
A. A Foreign National must provide either a copy of their visa or Passport.
 
Q. Can a Foreign National obtain financing for the construction of a new property?
A. Yes. A Foreign National is able to take advantage of the Construction Permanent Mortgage program if they will be building a new property.
 
Q. What if supporting documentation required for the loan process is not in English?
A. All documents provided will be translated into the English language by an independent third party at the customer's expense.
Q. At what time in the mortgage process does a Foreign National transfer funds to the U.S.?
A. Funds must be transferred to a U.S. bank account along with the required reserves two weeks prior to closing. We strongly advise that an automatic debit be set up for your mortgage payments to ensure the payments are not made late.

TopQ. What is a non permanent resident alien?

A. A non permanent resident alien is a Foreign National who has no lawful residency status in the U.S.
Q. How do I know if I should request a No Income Verification Loan or a Full Income Documentation Loan?
A. The No Income Verification Loan Program eliminates the need to verify income.
A Full Income Documentation Loan Program requires income verification. On a full documentation loan, if you are self-employed (you receive income from a company where your percentage of ownership is 25% or greater) your two most recent tax filing statements and a year-to-date profit and loss statement needs to be provided to InterBanc. If you are not self-employed, a full documentation loan requires your most recent two years company provided year end statements and a year-to-date company provided pay stub.
Q. What determines if I am self-employed?
A. A borrower is considered self-employed if they derive income from a company where their percentage of ownership is 25% or greater.
Q. What is the difference between a fixed rate and an adjustable rate mortgage?
A. A fixed rate mortgage is offered with an interest rate that remains unchanged for the term of the loan. Adjustable rate mortgages, also referred to as "ARMs" or variable rate mortgages have rates that change at a predetermined interval during the term to reflect general interest rates.
 
TopQ. What is property appraisal?
A. An appraisal is an estimate of the value of the property you intend to purchase.
 
Q. What is loan to value?
A. Your loan to value, or "LTV" is a ratio that describes the amount of your loan compared to the sales price. For example, if you borrower $150,000 on a property valued at $200,000, then you would have an "LTV" of 75%.
 
Q. What are "points"?
A. Fees used to adjust the yield on a mortgage to current market conditions are called points, sometimes referred to as loan discount points. The relationship between points paid and the interest rate on the mortgage is that as the points increase the interest rate decreases. A point equals 1 percent of the mortgage amount. For example, 1 point on a $100,000 mortgage is $1,000.
 
Q. What is "PITI"?
A. PITI is Principal, Interest, Taxes and Insurance which are the components of your monthly mortgage payment.
 
Q. What are escrows?
A. Escrows are funds collected with the borrower's monthly payment and accumulated to pay for items as property taxes and hazard insurance when they come due. Escrows are also collected at closing to start the escrow account.
Q. What is meant by "reserves after closing"?
A. Reserves represent a required amount of PITI payments remaining after closing in the borrower's bank accounts.
 
TopQ. What is a Construction to Permanent Loan Program?
A. This is a one-time close loan program which finances the construction of homes by providing both the construction funds and the permanent loan all in one closing. During the construction period, interest is only charged on the amount of the loan actually outstanding. When the home is completed the permanent loan begins.
Q. What are taxes?
A. Taxes are fees determined by the county or city to cover operating costs of local government and the amount is based on the assessed value of the property.
Q. What is insurance?
A. The insurance required on the property is hazard insurance. This insurance coverage compensates for physical damage to the property by fire, wind or other natural disasters.
 
TopQ. What is A.P.R.?
A. A.P.R. is the rate of interest that represents the relationship of all of the finance charges (interest, loan fees and discount points) to the amount of the loan. The A.P.R. is not the interest charged on the loan.

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who we are loan programs mortgage application
who we are loan programs mortgage application

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equal housing lender InterBanc Mortgage Services, Inc.
237 Lookout Place, Second Floor
Maitland, Florida, 32751 USA
Phone: 407-539-1300 — Fax: 407-539-2280
E-mail info@interbancmortgage.com

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