Home Purchase

Let Tarheel Mortgage Corporation find the right home loan product, tailored to your needs.

In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:

  • Purchase your home with no down payment using Private Mortgage Insurance (PMI) or Lender-paid Mortgage Insurance (MI).
  • Piggyback loans: 80-10-10 or 80-15-5. Avoid PMI payments by using Lender-paid MI.
  • Debt consolidation programs.
  • Home Improvement loans.
  • You may qualify even if you've been turned down before!

Find out more about our loan programs 

Fixed Home Loans
Fixed Home Loans

30-year fixed

15-year fixed





Advantages

Monthly payments are fixed over the life of the loan

Protected if rates go up

May refinance if rates go down

Disadvantages

Rate does not drop if interest rates improve

First Time Home Buyer
First Time Home Buyer Loans

For new home buyers









Advantages

Lower down payments

Easier to qualify

Lower rates may be available

Disadvantages

May be subject to income and property value limitations

Some government subsidized programs may generate a recapture tax if you sell the house too soon

Education courses may be required to qualify for these loans

No Points, No Fee Loans
No Points, No Fee Loans

A fixed loan bundled to reduce closing costs for buyers









Advantages

No out-of-pocket loan costs at closing

Closing costs are paid from the lender rebate

Less money required to close

Refinance without increasing your loan amount

Disadvantages

Higher rates

Higher payments

Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you

Some require a prepayment penalty for the first one to five years

Imperfect Credit Home Loans
Imperfect Credit Home Loans

Home loan for buyers with past credit issues









Advantages

Potential for reestablishing credit if you pay your mortgage on time

When used for debt consolidation, you may be able to reduce your monthly debt payment

Disadvantages

Higher rates

Terms may not be as favorable

Harder to get long-term fixed loans

Loans may have prepayment penalties

Piggyback loans
Piggyback Loans

A second loan guaranteed by home equity or home value















Advantages

You only borrow what you need

Pay interest only on what you borrow

Flexible access to funds

Interest may be tax deductible

May be free of closing costs

A good source for an emergency fund, if set up in advance

Can be used for debt consolidation and lower payments

Rates are usually lower than consumer loan or credit card rates

Disadvantages

Rates can change. The maximum interest rate can be relatively high
Payments can change

Harder to refinance your first mortgage

Interest Only Loans
Interest Only Loans

No longer prevalent











Advantages

You have several payment options

Lower monthly payments

Qualify for a higher loan amount

Qualify at the interest only payment

Option to pay the full normal payment

Interest only payments for up to ten years

Disadvantages

Higher rates

Principal loan balance will not decrease during the interest only payment period

Payment will be higher for the remaining term

Adjustable Rate Home Loans
Adjustable Rate Home Loans

10/1 ARM

7/1 ARM

5/1 ARM

3/1 ARM

1 year ARM

6 month ARM

1 month





Advantages

Lower initial monthly payment

Rates and payments may go down if rates improve

May qualify for higher loan amounts

30 year term, no balloon payment

Disadvantages

More risk

Payments may change over time

Potential for higher payments if rates increase

Balloon Mortgages
Balloon Mortgages

7 year

5 year








Advantages

Lower initial monthly payment

Lower payment for a predetermined period of time

Many balloon mortgages offer the option to convert to a new loan after the initial term

Disadvantages

Risks of rates being higher at the end of the initial fixed period

Risk of foreclosure if you cannot make balloon payment, refinance, or exercise the conversion option

Balloon payment requires you to sell or refinance after the term, as opposed to a 7/1 or 5/1 program with a 30 year term

 

Once you select the home loan product that is right for you, it's time to apply for your mortgage.

Use our step-by-step guidelines for a  hassle-free home loan.