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Loans to Purchase Your New
Home
FHA (Federal Housing Administration)
An FHA loan
requires only a 3.5% down payment with excellent rates and without the credit
score restrictions of a conventional loan. The Seller can contribute up to 6%
toward pre-paid items & closing costs. Non-Owner Occupied Co-Barrowers are
allowed if necessary. There is an upfront financed mortgage insurance of
2.25%,
and a monthly premium of .55%. This is an excellent choice for many first time
homebuyers.
FHA 203K
This is the
rehab loan. With the FHA 203k loan you can borrow the money to buy the house
AND all the money needed to fix it up, all in one loan! If you find yourself
saying "If only this house had..." a new roof, new windows, new carpet, an
updated kitchen and bath, handicap accessibility, or a garage? With the FHA
203K, you can have it all and do the work after settlement. If you are looking
to buy a home that needs improvements, this could be the ideal loan for you.
NO
MONEY DOWN!
There is a financed VA funding fee of 2.2%, and no monthly mortgage insurance.
The seller can pay all of the closing costs & pre-paid items. Even veterans
earning entitlement from the Reserves can participate. Disabled veterans don't
pay the VA funding fee.
Conventional
Purchases
require at least 5% down payment, and allow the seller to contribute 3% toward
pre-paid & closing costs. There is no upfront mortgage insurance, however the
monthly premium is .72%. If a down payment of 20% is made, the seller can
contribute up to 6% toward closing costs & pre-paid items, and there is no
mortgage insurance.
USDA (Rural Development)
The Rural
Housing Program's objective is "to assist low and moderate income households in
obtaining adequate but modest, decent, safe, and sanitary dwellings in rural
areas." USDA requires No down payment and No mortgage
insurance! There are income limits for each county and the home must be located
in an eligible rural area.
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A man
builds a fine house; and now he has a master, and a task for life: he
is to furnish, watch, show it, and keep it in repair, the rest of his
days. ~Ralph Waldo Emerson |
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