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.