Do you need a government secured loan? Are you in the armed forces, a veteran, reservist or the surviving spouse looking for a home mortgage?


FHA Loans

The Federal Housing Administration was created in 1934 as an effort to bolster homes sales during the Depression. By financially guaranteeing loans the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.

Advantages:

  • Bankruptcy not an automatic disqualification.
  • Less stringent credit requirements.
  • Lower interest rates.
  • Down payment is less.
  • Lower mortgage points and other closing cost requirements.
  • Resale can be made quicker.
  • Is backed by the U.S. government.Features:
  • Down payment required.
  • Higher MIP than on conventional loans.
  • Loan Limits are lower than conventional.
  • MIP required regardless of the Loan-to-Value (LTV).

    VA Loans

A VA loan is a mortgage loan guaranteed by the Veterans Administration. It was created in 1944 and signed into law by President Franklin D. Roosevelt. A VA loan provides veterans and/or their surviving spouses with a federally guaranteed home with zero down payment. The program, also referred to as the GI Bill, has been highly successful and has helped millions of American veterans and their families acquire a home.

Advantages:

  • No down payment.
  • VA does not require private MIP.
  • Limit on the amount of origination fees and closing costs that the lender can charge.
  • Limit also placed on appraisal fees.

Features:

  • Borrower must have a Certificate of Eligibility (CoE) from the VA in order to avoid a longer processing time.
  • Borrowers are required to make a one-time funding fee based on loan amount and applicant’s service length.
  • Closing costs may be paid by the lender and/or the seller.

USDA Rural Loans

The USDA Rural Housing Service has various programs available to aid low- to moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities. USDA rural housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no down payment.

Advantages:

  • No Down Payment requirement.
  • Property must be located in an eligible rural area (moved up from disadvantages).
  • Closing Cost can be added into the loan (if the property appraises high enough to include it at up to 102% of the appraised value).
  • Loan government guarantee fee and not monthly guarantee fee.
  • Low interest rates.
  • Applicants with a wide range of credit profiles.
  • Income eligible applicants who do not qualify for conventional financing.
  • Families & Individuals that have minimal funds for a down payment and closing costs.
    Includes First Time Homebuyers and Repeat Homebuyers.
  • Seller Concessions – 6% max.
  • No cash reserve requirement.
  • No Non-Allowables costs.
  • No First Time Homebuyer Requirement.
  • 30 Year Loan @ Competitive Fixed Rate.
  • No Limit on Gift Funds.

Features:

  • Property must be in very good condition and have a high insulation R-factor.
  • You can not make over 50% of 115% of the median county income to qualify.
  • Must be able to verify income limits.