Government Loans

FHA

There are many different types of FHA insured loans. We will focus on the most popular one which is technically called the FHA 203B loan. This program allows the borrower to purchase a home with as little as a 3.5 percent contribution. It does have specific maximum loan limits (by county) that you can find HERE. This is not a government loan. It is “Government INSURED” by HUD (Dept of Housing and Urban Development) but the loans are underwritten, approved, and serviced by outside investors. It is possible for the 3.5% contribution requirement to be a gift from several acceptable sources. This loan is often more flexible with regards to credit profiles and credit histories. Two caveats to be watchful of…

  • There is an up front Mortgage Insurance Premium (UFMIP).That premium is presently 1.75% of the loan amount. This fee can be added to your loan amount if needed, So you don’t have to pay it up front. But you need to be aware of fee and what impact it has on your loan.
  • The Monthly premium you pay to HUD (FHA MIP) will remain a part of your loan as long as you have it. Effective June 2013, FHA mortgage insurance on loans that had an INITIAL LTV of greater than 90%… will never drop the MIP

Be careful in choosing FHA. It has many positives for homeowners. It opens home ownership doors for many buyers and prospective Homeowners. But with so many alternate loan programs out there, it is not always the best choice just because of the low down payment. You can gather additional information about this program by clicking HERE

FHA 203K Streamline

Like the FHA 203B loan above, this loan known as the 203K Loan is an FHA Loan that allows some renovation/repairs to be included in a purchase transaction or as a refinance transaction. There are two different types of 203K. They are aptly called the 203K Rehab loan and the 203k Streamline. Both allow for remodel/renovation projects. While we do not offer the 203k REHAB loan, it is a beefier version of the 203k Streamline, which limits improvements to $35,000 and limits the inclusion of room additions or any repair that is structural. Do you have a home that needs some maintenance done? Do you hope for that new Kitchen or master bathroom? Do you want to take the screened porch and make a Sunroom? Is there some maintenance you need done? Well now it is within reach. Click HERE for more good information on these loans and the parameters you may want to know about.

VA

This loan is specifically for active duty military, reservists, or veterans. It offers purchase loans for up to 100% of the sales price for qualified applicants and has no mortgage insurance requirements. Again this loan is often more flexible regarding income, credit profiles and credit histories. Refinances are also more flexible with VA loans. They offer both an IRRL (Interest Rate reduction LOAN) as well as a cash-out refinance for up to 90% LTV. Ask us about them. Or you may check HERE for more specific information. Two very attractive features of this loan program…

  • If you are presently earning ANY VA disability pay, you would be exempt from the VA funding fee. See HERE for the funding fee chart.
  • As mentioned, this can be (and often is) a 100% loan. Or put more succinctly: a zero downpayment loan with no mortgage insurance. (Ask us to be sure of the max loan amount) and there is no monthly mortgage insurance. If you are unsure if you have available eligibility, call us. We can help you research your eligibility. There is now an online portal allowing us to obtain your “certificate of eligibility” (COE) for you. Call us, we’re glad to help.

A loans are a true hidden gem for those who have served our country and we would love the opportunity to help you see if this loan is what fits your needs. 

USDA RURAL Housing

This loan also allows for 100% financing to qualified applicants, For many years there was no mortgage insurance requirements. NOW, you must pay a small annual premium (paid monthly as part of your payment). Qualification for this loan, is tied to the property as well as the applicant. Typically the property must be in a less developed area, but always ask first. You can also look HERE You will be very surprised to see where this loan program remains eligible even in developed areas.

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