Any mortgage that is not insured or guaranteed by the federal government is considered to be a conventional loan.  Conventional loans may be conforming or nonconforming.  Conforming lmortgage oans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. Nonconforming mortgage loans are described as loans in which the terms are underwritten based on guidelines that differ from lender to lender in which the loan amount, the loan to value ratio, the terms, or some other aspect of the loan exceeds permissible limits as specified   Currently, the conforming loan limit for a single family residence in Montana is $417,000. 

A jumbo mortgage is a loan product that provides financing for those who are purchasing or refinancing a property that exceeds the current maximum conforming loan amount.  A jumbo mortgage will carry a slightly higher interest rate than a conforming conventional mortgage. American Mortgage is one of the few lenders currently offering both fixed and adjustable-rate jumbo mortgage loans in Montana.

The greatest benefit of the 80/20 loan product is that you avoid paying mortgage insurance.  You do this by receiving a 1^st mortgage at 80% of the purchase price and a 2^nd mortgage (piggyback) for the remaining 20% of the purchase price.

The 1^st mortgage can be a fixed rate, adjustable rate or an interest only loan.  The 2^nd mortgage can be a home equity line of credit that changes with the prime rate or a closed end loan with a fixed or adjustable rate option.

An interest only mortgage loan allows a borrower the option of paying just the interest portion of the mortgage payment, instead of principal and interest.  The borrower reaps the benefit of lowering his/her monthly payment, while still having the ability to make principal payments in addition to their required monthly interest payment.  Interest-only loans can be fixed rate or adjustable rate mortgages.  The interest only option is available for a portion of the term, followed by a fully amortized period.  For example, on a 30 year fixed interest only option, you would pay the first 15 years of the note at the interest only payment, followed by the remaining 15 years at the fully amortized payment.

FHA loans provide a great resource for anyone looking to purchase a single-family or multi-family home with a minimal down payment. FHA loans are insured by the Federal Housing Administration and require a borrower to put down as little as 3.5%. In addition to FHA purchases, we are pleased to offer FHA refinance options, including FHA Streamlined Refinances. Loan limits vary from state to state and county to county and are periodically updated as the housing market changes. To learn more about FHA loan requirements, limits, and availability contact one of our knowledgable Loan Consultants today!

The USDA Rural Development guarantee program provides loans for homebuyers in rural areas.  This program does not require a downpayment.  It is a 30 year fixed rate program with no mortgage insurance.  It is available for borrowers with flexible credit.  There is a required guarantee fee that may be rolled into the loan amount.  Income restrictions do apply. 

American Mortgage a division of Network Funding LP, is proud to offer VA loans to our veterans.  These loans are available for the benefit of eligible veterans of the armed services, active-duty personnel, reservists, and their spouses.  VA loans allow for relaxed qualifying requirements, including no down payment for qualified borrowers.  With a VA loan, you are required to pay a funding fee which may be financed in whole or in part in the mortgage you receive.  Applying for a VA loan is not much different then applying for a conventional mortgage, although you will be required to submit your certificate of eligibility to document the guaranty or insurance benefit available to you.  Purchase and refinance loans are available through the VA loan program.