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Loan Categories
Homebuyers are understandably concerned about interest
rates, but most homebuyers underestimate the importance
of choosing the right mortgage. A loan that is
customized to your needs can provide huge savings, while
choosing the wrong mortgage can be very expensive.
Let's begin with a quick lesson on
mortgages. You’ll find links for additional information
if you want to learn more.
There are three general categories of
mortgages:
VA loans
are "guaranteed" by the Veteran's Administration for
eligible veterans. The most outstanding feature of a VA
loan is the ability to obtain 100% financing. A funding
fee is paid to the VA at closing, and the fee may be
included in the loan. The loan is assumable to
subsequent buyers. The maximum VA loan amount is
$359,650. If you think you qualify for a VA loan,
contact a Loan Officer for assistance. For more
information on VA loans, contact one of our Loan
Officers.
FHA loans
are insured by the Federal Housing Administration.
Borrowers typically provide a small down payment, but
with special associated programs the down payment can be
obtained as a gift from a home advocacy non-profit
association. A “Mortgage Insurance Premium” is paid to
the FHA at closing, and the fee may be included in the
loan. Additionally, there is a small monthly insurance
premium added to the payment. The maximum loan amount
for an FHA varies with location. For more information on
FHA loans, contact one of our Loan Officers.
Conventional
Loans are very common and are typically the most
flexible. Loans amounts not exceeding $359,650 for
single family homes are called "conforming" loans, while
loans above $359,650 for single family homes are called
"jumbo" loans, and loans greater than $1,000,000 are
considered "super jumbo" loans. The down payment can be
as little as 0% (with specialized financing) to as much
as desired. Mortgage insurance may be required on some
loans, but we have many products that do not require
mortgage insurance. For more information on mortgage
insurance, click here. For more information about
conventional loans, contact one of our Loan Officers.
VA, FHA, and Conventional loans offer
various financing options (such as fixed rate,
adjustable rate, balloons, etc.) so you can customize
your loan to your needs. For information about these
options
click here.
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