By John Aretos, CEO of Police Mortgage
FHA and VA loans may be an immediate alternative for those who don’t have 20% to put down and want to have a low-money-down payment option to buy a house. Let’s say, hypothetically, the conventional rate today is at 7%. The FHA rate in comparison is probably going to be 6.5% or lower, depending upon the market. For Police Mortgage, it’s more about trying to create strategies for people to find a way to get them into a home at lower interest rates, which equals cheaper payments.
Just as important, FHA recently lowered their overall mortgage insurance rates. So, as a result, they have made the mortgage insurance component more competitive. That directly competes against conventional private mortgage insurance.
FHA has MIP, which stands for Mortgage Insurance Premium. Conventional mortgages have PMI, Private Mortgage Insurance.
If borrowers are putting 20% down, a conventional loan would be their best option, but if they’re looking for low down-payment options, FHA and VA are often more competitive than conventional. When it comes to making home loans for law enforcement, it’s about finding the best police mortgage rates and making the payments as comfortable as possible.
For example, if someone is trying to make a $200,000 home purchase, and it’s a 5% down situation, the client can go either FHA or conventional at that point. That’s if they only have $10,000 to put down in this scenario.
If this individual is a veteran or an active reservist there is an additional option in the form of a VA loan. We will get into that in a bit. For now, know that we at Police Mortgage are experts on this option. We answer questions like “How long is a VA preapproval good for?” and many others like that all the time.
Going back to FHA loans, the biggest bonus is the newly competitive mortgage insurance premium rates, and the better current offerings on interest rates. The FHA option certainly has certain costs to it that a conventional loan doesn’t have but today in 2024 the benefits outweigh the costs in many situations.
So, we’re giving our police officer credit union members a couple of different options right now. When there is 20% to put down we will likely recommend a conventional loan. The rate is probably going to be a half point or better below market rates for a conventional 30-year fixed rate program. If 20% down isn’t possible, more times than not we will recommend an FHA transaction. That FHA interest rate is usually about a half point below market.
Obviously if the member is a veteran, then we’re talking about a VA loan where there is no money down and no mortgage insurance.
When borrowers are applying with Police Mortgage, they don’t need to have a decision made on loan type. We’ll explain all of the possible rate-saving options and let the decision be theirs.
As we continue to say, it’s not “push button get mortgage” with us. Each and every situation is different. The best thing you can do is to have a conversation with us and let us know what is most important to you.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
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I have my bachelor’s in business administration and have been involved in the banking industry for over 10 years. During that time, I managed two of the Chicago Patrolmen’s Federal Credit Union branch locations prior to transitioning to Police Mortgage. I have family members who are police officers with the Chicago Police Department. My work has been very rewarding, and I take pride in having assisted countless members and their families with their financial needs and financial wellness. My hobbies include exploring new restaurants in the city and running in marathons that support pediatric cancer foundations and Chicago Police Memorial Foundation’s Run to Remember. I come from a large family primarily from the south side of Chicago and love to share all the diversity and beauty the city has to offer with my two children.
I am honored to grow up in a multi-generational family of Chicago Police Officers. I joined Police Mortgage in the summer of 2020 and love the opportunity to help both first-time buyers and repeat clients alike achieve their dreams of purchasing a home. Having been born and raised in the south suburbs of Chicago, I happily live in the Lakeview neighborhood today. Along with my two younger sisters, I am a graduate of the University of Illinois at Urbana-Champaign and a lifelong Chicago Bears fan. I have a strong passion for food and love exploring the vast array of restaurants throughout our city. Nothing makes me happier than spending a summer afternoon on a golf course with family and friends!
I joined my brother at Police Mortgage as a loan officer in August of 2021 after a 10-year career in sales and marketing. Most recently, I worked as a Senior Account Executive for Ricoh North America, an office electronics company, where my main responsibilities were building new client relationships and maintaining over 400 existing customer accounts. I believe my work experience has transferred over to the mortgage industry well, because I am able to multi-task effectively while working with multiple customers. The skillset I learned in my previous employment allows me to stay organized and to manage my time well for my customers. My number one goal is always to make the loan process as quick and painless as possible for our borrowers. I am excited to further develop the Police Mortgage brand with my brother. It is a unique situation, and I believe working in an office together allows us to help our borrowers even more due to streamlined communication and our ability to help each other with our respective files. I like to spend my free time relaxing, watching sports, exercising, going out to eat with my wife, and trying to keep up with our three daughters – all under five years old!
After graduating from the University of Missouri in 2015, I moved to Chicago where I began a career in marketing at a firm called Ansira. I sought a career change and contacted Police Mortgage, where I was first introduced to the mortgage industry. I have spent the last 5 years training with our CEO, John Aretos, who has taught me all of the intricacies of the mortgage process. I love finding solutions for our clients to help them purchase the home of their dreams. I feel a huge sense of accomplishment when helping homebuyers, especially first-time homebuyers, all the way through the loan process, from pre-approval to closing day. I recently moved back to my hometown of St. Louis, where we opened a new office. I am excited to help start this new chapter for Police Mortgage. My wife, Megan, and I are happy to be back in our hometown. We are always checking out new outdoor events such as music or food festivals – anywhere we can take our dog, Remy!
As the CEO of an organization associated with serving the Police and their loved ones, I am privileged to play a role in helping our clients achieve their life’s financial goals. Our mission is to make the home buying or refinancing process as comfortable as possible, providing our clients with competitive products and excellent service.
I was born and raised in the Chicago metropolitan area, and I have a deep-rooted love and appreciation for the diverse culture which makes our city so special. My two older siblings and I grew up working in our parent’s restaurant, which instilled a work ethic and sense of family that I carry with me to this day.
I am a graduate of Indiana University and have been involved in the mortgage industry for nearly 25 years, helping thousands of clients save money or finance the home of their dreams. My passions are passing down my love of food, music, art, snow skiing, and red wine to my three children, who motivate me to be a better person each and every day!
