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 3.5 percent down payment is required.
  • Closing costs can be financed.(Utah Housing) 
  • More flexible credit and income qualifying guidelines than conventional loans. 
  • Loans are assumable to qualified buyers which can make selling easier.
  • Gift funds may be used for 100% of the down payment. 
  • 203K Program for fixer-uppers/Remodeling.
  • FHA Reverse Mortgage
  • Good Neighbor Next Door Program for Teachers/Police Officers/Fire Fighters 
  • Loan can be used for purchasing a home or refinancing your existing mortgage.
  • FHA and VA Streamlines
  • High Balance Limit / Jumbo FHA Loan

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:

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

 

FHA and VA Streamline Refinance

 

The "streamline" refers only to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean that there are no costs involved in the transaction. Lenders may offer streamline refinances in several ways. Some lenders offer "no cost" refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction.

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:
  • The mortgage to be refinanced must already be FHA insured.
  • The mortgage to be refinanced should be current (not delinquent).
  • The refinance is to result in a lowering of the borrower's monthly principal and interest payments.
  • No cash may be taken out on mortgages refinanced using the streamline refinance process.
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

HIGHLIGHTS

• 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.