Government loan programs

FHA loans

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:

• Only a 3.5 percent down payment is required.
• Excellent Interest Rates available 
• Seller may contribut to pay for closing costs 
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• More flexible underwriting criteria than conventional loans
• FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
• Loans are assumable to qualified buyers.

FHA 203K Streamline: 

• Used to finance repair costs on a home with purchase price
• Up to $35,000.00 can be financed to repair home
• Interest rates are the same as other FHA loans
• Excellent Opportunity to purchase that foreclosed property and fix it up before moving into it.
• Call for details.  

USDA Rural Loans

USDA Rural Loans are designed to help low to moderat income level families purchase homes with little to no money down!  

• USDA Allows for 100% financing
• No Mortgage Insurance
• Sellers can pay for closing costs
• Closing costs may be financed into loan
• Not limited to First Time Home Buyers
• No prepayment penalty
• Income limits for a couple or as high as $85,000.00.  Call for updated information as guidelines may change.          

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Benefits of VA Loans:

• 100% Financing is allowed 
• Excellent Rates available 
• No private mortgage insurance 
• Right to prepay loan without penalties
• Seller may pay for closing costs
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

Other Loan Programs:

Conventional Loans

Conventional loans are best used for refinances on homes that have at least 20% equity or for purchases that the buyer is putting at least 20% down on the property.  In general, these loans will have the best interest rates since they require the most amount of money down or equity in the home. 

Construction Loans:

• We have many construction loans available
• Call for details as each scenario is different.

Let's get started today.  Feel free to use our online loan application or our quick pre-approval form to see what we can do to help.  If you prefer, contact me directly to seup a free mortgage consultation.  I will develope a mortgage plan that is designed especially for you.