Government Loan Programs
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:
Other benefits of a VA loan include:
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.
FHA and VA Streamline Refinance
Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount. Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal. The basic requirements of a streamline refinance are:
FHA 203(k) Rehabilitation or Remodeling Loan Program
Obtain home loan financing and the funds for renovation in one loan. Have you found a home that would be perfect with a few renovations? Or perhaps you are considering expanding your current home, or renovating your bathroom or kitchen. If any of these possibilities are in your future, an FHA 203(k) loan may be a good option for your renovation needs.
The FHA 203(k) loan provides financing and funds for the cost of renovation in one easy loan closing process to qualified borrowers. If you qualify, you will receive a cost-effective, single-close loan option that enables you to remodel a kitchen or bath, repair a roof or make other important improvements to an existing or newly purchased home that needs renovation.1
• One loan and one set of closing costs
• Financing based on the as-completed value of the home
• Buy or refinance a home with up to four units
• Monetary gifts from family toward down payment allowed
Call to get more details about Government Loans. If you are looking to purchase a home, there may be available grants in your area. Grants in your area may vary but some do not require repayment. Get approved for your home financing now call (801) 403-8887.