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 percent down payment is required.
  • Closing costs can be financed.
  • 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.

 

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.

 

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.

 

 

Improve Your Quality Of Life With A                           Reverse Mortgage.

A reverse Mortgage is a loan that allows seniors to use the equity they've accumulated in their homes over the years to improve their quality of life. By receiving converting equity into income, a reverse mortgage is a way to stay in your home and receive cash to use for any purpose - whether its' day-to-day living expenses, home remodeling or repair, earning a college degree, or even traveling the world. All of this while you retain the title and remain living in your home.

Homeowners who are 62 years or older can qualify. There are no income or credit qualifications. The size of the reverse mortgage granted depends on the applicant age, the type of reverse mortgage sought, the homes value and current interest rate. Best of all, as long as the reverse mortgage is outstanding, no monthly mortgage payments are required. The loan matures when the borrower no longer occupies the property.

Reverse Mortgage Quick Facts.

  • No repayment is made until the home is sold or the owner permanently moves our or passes away.
  • When the loan is due, your heirs have choices – they can repay the loan and keep the house or sell the home and repay the loan.
  • Social Security benefits and Medicare are generally not affected by a reverse mortgage.*
  • You continue to own your home- we do not take control of the title.
  • Closing costs and fees incurred can be financed as part of the loan.
  • No income or credit qualification.
  • You will never owe more than the current market value of your home at the time the loan becomes due.
  • Interest is tax deductible.**
  • Ability to access equity built in the home since its purchase.

* consult appropriate government agencies, ** consult your Financial Advisor.

Making a Reverse Mortgage Work for You.

Getting Started. If you want to lean how a reverse mortgage will work for you; a loan advisor will explain the benefits, features, income options and costs associated with a reverse mortgage.

Releasing Equity in Your Home. The amount of funds available is generated based on the following. Appraised value of home or maximum lending limit. Borrower’s Age Current Interest Rate

Taking Action. When you are ready to move forward, we will assist you in completing a short application request and schedule a counseling sessions with an approved counselor. Counselors will the review with you even further into the product sought prior to closing of the loan.