Government loan programs - WE HAVE BEEN DOING FHA & VA LOANS SINCE 1990!

Government loans are excellent, safe ways to buy a new home or refinance your mortgage so call (724-772-2022) or email (lindsay@ourfirstchoice.com) me today for more information!

     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:

• 3.5 percent down payment is now required.
• Closing costs can be covered by up to 6% seller help (why not ask for seller assistance and use some of it to buy down your interest rate for continued savings).
• 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.
• Loans are assumable to qualified buyers.
• Cash out refinances up to 85%.
• Minimum middle credit score is 620.

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:

• Competitive 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.
• Minimum middle credit score is 620.

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.

Rural Housing Loans

Rural Housing loans are made by lenders and guaranteed by the US Department of Agriculture to income eligible borrowers for rural homes in eligible areas.  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 Rural Housing guaranteed loan.

Interest rates and closing costs are similar to other government lending programs and seller assistance can help the borrower pay for their closing costs.  There is also no monthly mortgage insurance.  Although mortgage insurance is not required, Rural Housing charges a 2% 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. 

Government loans are excellent, safe ways to buy a new home or refinance your mortgage so call (724-772-2022) or email (lindsay@ourfirstchoice.com) me today for more information!

*  Interest Rates vary frequently based on a number of factors, please call for a custom no obligation quote.