If you are in the market to purchase your first home, your next home or a vacation home, you will find the answers and advice you need when speaking with a MortgageRight loan officer.
Conventional Loan Purchase
Conventional (conforming) mortgage loans are financed and insured by private lenders and investors, rather than being insured by the Federal Government (FHA). Conventional loans are often sold to Freddie Mac (FHLMC) or Fannie Mae (FNMA), the largest source of loan funds in the United States, who purchase closed mortgages, freeing up funds so lenders can make more home loans. A conventional loan may also offer the choice to pay homeowners insurance and taxes directly, rather than be included in the monthly payment each month.
FHA Mortgage Loan
Fortunately, the Federal Housing Administration (FHA) requirements for credit scores and down payments are lower than for conventional loans. Borrowers may be able to qualify for an FHA loan with a credit score of at least 580 and a downpayment of just 3.5 percent. FHA loans may allow sellers to pay up to 6 percent of the loan amount to cover buyers’ closing costs.
Jumbo Rate Loans
A jumbo rate loan is a loan that exceeds conventional or conforming loan limits and is a great loan for purchasing a high-priced or luxury home. If you have a lower debt-to-income ratio, a higher credit score, and a larger down payment – a jumbo rate loan may be right for you. And, while jumbo rate loans typically require a higher down payment, higher credit score and reserves, the perks of the jumbo rate loan are numerous. Jumbo rate loans have no private mortgage insurance requirements.
Veteran Loan Benefits
The VA (Veterans Affairs) helps service members, veterans and their families become homeowners by providing a home loan guaranty benefit and other housing-related programs to help veterans obtain, retain, or adapt a home for personal occupancy. VA-guaranteed loans are provided by private lenders, such as banks and mortgage companies, and not by the VA directly. Through the VA Home Loan Guaranty Program, VA guarantees a portion of your loan against loss and helps lenders provide you with more favorable financing terms.
USDA Loan Benefits
Originally designed to help rural Americans realize the dream of homeownership, the USDA Mortgage now services a wide variety of locations, homes and properties through USDA approved lenders. The USDA Rural Development Single Family Housing Guaranteed Loan Program is one of the most powerful mortgage options available for rural and suburban homebuyers. USDA Loans come with significant benefits that provide homebuyers the opportunity to achieve loan terms that no other program can offer. Of the many benefits, the most cited is the ability to obtain 100 percent financing.
Reverse Mortgage Loan Benefits
A reverse mortgage or Home Equity Conversion Mortgage (HECM) is a special type of home loan that converts a portion of your equity into cash and the equity that you have built up over time is then paid to you. Unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence – or fail to meet the obligations of the mortgage. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.