1. Loan Programs for Veterans Loan Programs for Veterans – Which is Best for You? There are many loan programs for veterans that can fit almost any need. Please call and ask which loan program best fits your situation. Recommended Programs Use the information below to choose the best program for your need. Years you plan to stay in the house: Recommended Program(s): 1 – 3 3/1 ARM, 1-year ARM or 6-month ARM 3 – 5 5/1 ARM 5 – 7 7/1 ARM 7 – 10 10/1 ARM, 30 years fixed or 15 years fixed 10+ 30 years fixed, or 15 years fixed 15-Year and 30-Year Fixed Rate Payment and rate stay the same from start to finish plus tax. Adjustable Rate Mortgage (ARM) Lowest start rate Adjusts either every 6 months or every 12 months depending on program and grade and is based on the economy 6% ceiling for prime and 7% ceiling for sub-prime.

2. 5/1 and 7/1 Fixed Rate Rate is fixed for the first 5 or 7 years, then shifts to an adjustable rate mortgage (ARM). Which Loan Program is Best for Me? Here are a few things to keep in mind when selecting a loan program. 15-Year and 30-Year Fixed Rate Advantages: Disadvantages: Pay more interest over the life of the loan, higher starting interest rate, Lower debt ratio (Larger Income to qualify) Higher monthly payment. Maximum interest deduction for taxes, sometimes easier to qualify, stable predictable payments, high loan to value, lower down payment, possible secondary financing if needed. Adjustable Rate Mortgage (ARM) Advantages: Disadvantages: Lower starting rate than 30 years fixed. Great for refinancing from a higher rate use when you plan a move in 5-7 years. Some are convertible to 30-yr fixed or a treasury ARM, low fees, good rates. Loan balance due can change long term financial planning if you plan to live there over 7 years.