FHA VA Government Mortgage Programs

 FHA  Loan Programs       First Mortgage Home Loan

FHA loans are insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). Not all mortgage lenders offer an FHA home loan mortgages. FHA home loan mortgages are a popular option with some lenders because the FHA does not loan money, it provides investors protection through mortgage insurance in case the borrower unfortunately defaults on their loan obligations. In other words, if a buyer cannot meet their obligation to repay the loan, the Federal Housing Authority will buy out the loan thus keeping the lender and their investors from losing money.

FHA home loan mortgages have been available since the 1930s. The FHA loan program was implemented as a result of the stock market crash of 1929 and the great depression. Millions of homes were foreclosed upon at that time due to the owners' inability to pay due to high unemployment and the economic status of the U.S economy. An FHA home loan mortgage is something that was set up to help more people fulfill the American dream of home ownership.

Available to all qualifying home 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 helpful to those buyers with less available down payments. 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% down payment is required. (can be a gift from a family member)
• Closing costs can be financed
• Lower monthly mortgage insurance premiums compared to conventional loans
• More flexible underwriting criteria than conventional loans
• FHA limits the amount lenders can charge for some closing cost fees
• Loans are assumable to qualified buyers
• Allows “non-traditional” credit for buyers with little to no credit history
• 3% maximum seller concessions allowed (FHA) 

As you look into FHA loans and loan limits, you will find that the area in which you plan to purchase a home will dictate on the amount of money that you are eligible to borrow.

What Is an FHA Jumbo Home Loan Mortgage ?

When you apply for a conventional mortgage loan, there are limits to the amount of money you can borrow, if you are looking at a property that costs more than that the FHA loan limit guidelines, you need financing via a jumbo mortgages.

Traditionally, a lender and their investors who would normally have concerns about approving such an applicant would either increase the interest rate of the mortgage or simply not qualify a borrower for the full amount of the loan they applied for. However, with an FHA jumbo home loan mortgage lenders recognize that the government is willing to guarantee the loan. As a result, more financing is available to those looking to purchase a home that is more expensive than traditional FHA loan limits allow.

VA Loan Programs  First Mortgage Home Loan

  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.

Other benefits of a VA loan include:

• Negotiable interest rates.
• Closing costs are comparable and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• 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.

Give Patrick Schoen a call at (800) 343 - 4450. These EZ qualifying Government Loan programs are available for Purchases and Refinance.