A conventional loan is a type of mortgage that is not part of a specific government program, such as Federal Housing Administration (FHA), Department of Agriculture (USDA) or the Department of Veterans Affairs (VA) loan programs. Conventional loans typically require a higher credit score. We offer NO MONEY DOWN RATHER THAN 3% THEN CONTINUE WITH FULL PARAGRAPH, otherwise a 5% down program is available. You can as always put down as much as you want 10%, 15%, or 20%…etc.
Choosing the best FHA Mortgage loan can give you a chance to own the home of your dreams. An FHA home loan is a government-subsidized loan that is not only popular with first time home buyers, but with buyers who have previously purchased a home.
FHA mortgage loans are not particularly credit score driven, and because of this, they are very attractive for people with less than perfect credit
(There is a minimum credit score, however). With a small down payment and fantastic rates, it is easy to see why home buyers choose this option.
We offer FHA approved lender services. This type of loan is guaranteed by the Federal Housing Administration and provides you with several financing options. This is the loan type most commonly used by people who are purchasing their first home because it comes with fewer restrictions on qualifications. In fact, some borrowers may qualify for down payment assistance. We also offer FHA refinance products including low-documentation or streamline refinance options.
What Is a Federal Housing Administration Loan (FHA Loan)?
An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). Designed for low-to-moderate income borrowers, FHA loans require a lower minimum down payments and credit scores than many conventional loans.
As of 2019, you can borrow up to 96.5% of the value of a home with an FHA loan (meaning you'll need to make a down payment of only 3.5%). You’ll need a credit score of at least 580 to qualify. If your credit score falls between 500 and 579, you can still get an FHA loan provided you can make a 10% down payment. With FHA loans, your down payment can come from savings, a financial gift from a family member or a grant for down-payment assistance.
All these factors make FHA loans popular with first-time homebuyers.
While Federal Federal Housing Administration Loans (FHA Loans) demand lower down payments and credit scores than conventional loans, they do carry other stringent requirements.
It’s important to note that the Federal Housing Administration doesn’t actually lend you money for a mortgage. Instead, you get a loan from an FHA-approved lender, like a bank, and the FHA guarantees the loan. Some people refer to it as an FHA insured loan, for that reason.
You pay for that guarantee through mortgage insurance premium payments to the FHA. Your lender bears less risk because the FHA will pay a claim to the lender if you default on the loan.
How an FHA Loan Works
An FHA loan requires that you pay two types of mortgage insurance premiums—an Upfront Mortgage Insurance Premium (UFMIP) and an Annual MIP (charged monthly). The Upfront MIP is equal to 1.75% of the base loan amount (as of 2018). You pay this at the time of closing, or it can be rolled into the loan. If you’re issued a home loan for $350,000, for example, you’ll pay an UFMIP of 1.75% x $350,000 = $6,125. The payments are deposited into an escrow account set up by the U.S. Treasury Department, and the funds are used to make mortgage payments in case you default on the loan.
Despite the name, you make Annual MIP payments every month. The payments range from 0.45% to 1.05% of the base loan amount, depending on the loan amount, length of the loan, and the original loan-to-value ratio (LTV). The typical MIP cost is usually 0.85% of the loan amount. If you have a $350,000 loan, for example, you will make annual MIP payments of 0.85% x $350,000 = $2,975, or $247.92 monthly. This is paid in addition to the cost of UFMIP.
WE ARE ONE OF THE FEW LENDERS THAT STILL OFFER OVER COUNTY LOAN LIMIT CASH-OUTS AND 100% CASH-OUT LOANS WHEN ALL OTHER LENDERS ARE AT 90% LTV MAX. WE OFFER THE 100% VA CASH-OUT STILL BECAUSE WE ARE A DIRECT PARTNER WITH THE VA.
With less than perfect credit, your options for a home loan may be limited. But if you’ve served in the military, you may qualify for quick approval and a low down payment with a Veterans Administration (VA) Loan.
We are committed to providing the best possible service to our clients and have simplified the application process so that your loan with being more likely to be approved. We provide the expertise and the experience to help you obtain the best possible loan for your budget.;
VA Mortgages are available to Active Duty Military, Retired Military, some surviving Spouses, and Reservists/ National Guard Members.
Should a borrower be in default on their loan, the VA will repay it. SA VA loan is one o the best lending options available on the market today.
Rather than issuing loans, the VA guarantees to the lender that repayment will be made, no matter what. That guarantee gives VA-approved lenders greater protection when lending to military borrowers, and often leads to highly competitive rates and terms for qualified veterans.
A Jumbo mortgage is a home loan for an amount that exceeds conforming loan limits set by Fannie Mae and Freddy Mac regulations.
Jumbo loans begin at $484,350 in most of the U.S. In counties with high home prices, conforming loans have higher limits, up to $625,500.
If you are in need of a jumbo loan for a property worth more than $484,350, you need mortgage managers you can rely on. We pride our self on doing business the right way which is with honesty and integrity. We will work alongside you to make sure that your financed are secure, and that you save as much money as possible.
The rates are typically higher with Jumbo Mortgages due to the amount of risk associated with financing a larger property. This is because it may be more difficult to sell and recoup losses in the case of a default.
Regardless of the size of your mortgage, the underwriter needs to be certain that you are able to make your m monthly mortgage payments over the life of the loan – whether it’s in the amount of $500,000 or $5 Million dollars. It’s important to be thorough in explaining what you do for a living, the health of the industry, and the likelihood of continued employment.
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2020. In most of the U.S., the 2020 maximum conforming loan limit for one-unit properties will be $510,400, an increase from $484,350 in 2019.
The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price. Earlier today, FHFA published its third quarter 2019 FHFA House Price Index (HPI) report, which includes estimates for the increase in the average U.S. home value over the last four quarters. According to FHFA's seasonally adjusted, expanded-data HPI, house prices increased 5.38 percent, on average, between the third quarters of 2018 and 2019. Therefore, the baseline maximum conforming loan limit in 2020 will increase by the same percentage.
High-cost area limits
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit. HERA establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a “ceiling" on that limit of 150 percent of the baseline loan limit. Median home values generally increased in high-cost areas in 2019, driving up the maximum loan limits in many areas. The new ceiling loan limit for one-unit properties in most high-cost areas will be $765,600 — or 150 percent of $510,400.
Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $765,600 for one-unit properties.
As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2020 in all but 43 counties or county equivalents in the U.S.
· For a list of the 2020 maximum loan limits for all counties and county-equivalent areas in the U.S. click here.
· For a map showing the 2020 maximum loan limits across the U.S. click here.
· For a detailed description of the methodology used to determine the maximum loan limits in accordance with HERA, click here.