Parkland Mortgage Broker - Pre Approvals, Refinances, & Purchases
It is believed that the economy will grow up to 3.3% in the year 2015, and this will guarantee more home ownership. In spite of that, there are still those who need some help when it comes to purchasing their first home, and there will always be those who need to take out a mortgage for one reason or another. Let’s talk about a few of the different mortgage types that you might be dealing with and how they differ from one another. Remember, even if you don’t have the cash at hand, it is still more than possible for you to obtain the house that you want.
FHA Loans & First Time Home Buyers
The FHA is an acronym for ‘Federal Housing Assistance’, and it is intended for those who are buying their first home. This type of loan is provided to those who have the credit score required to obtain a home loan, but they may not have the money to put down up front. Most loans will require an initial investment of 20%(or more, depending on your credit rating), and this is 20% of the home’s entire value. This initially might not sound like much, but take into account that the average home will cost around $300,000. Now, take 20% of that and you will realize that you have a cost of about $60,000. Most people do not have that type of cash laying around, but many want to own a home. That being said, the FHA loan waives the typical fee so long as you meet other requirements. The following is a brief list of items you will need when you apply for your FHA loan:
- Home Address(for the last two years)
- Your Social Security Number
- Names of your Employers
- Monthly Salary(Gross)
- Checking/Savings Account Information
- Information on Open Loans
- Value of Personal Property
- Check Stubs
- Personal Tax Returns
With this information you will be well on your way to qualifying for the loan that you need, and even closer to owning the home of your dreams.
VA Loan Mortgage Broker
There are average citizens, and then there are those who have fought and bled for their country. In the United States, veterans are entitled to certain privileges, one of them being the entitlement to a home loan without the same restrictions as a typical applicant. As a veteran, assuming you qualify and have paperwork proving so, you will be able to do the following at a reduced interest rate, and with a waiver of the downpayment:
- Buy a New Home/Condo
- Build your Own Home
- Purchase a Home and perform Renovations
- Make Energy Efficient Modifications to your Existing Home
- Buy a Manufactured Home or Lot
Something to note is that you can use your VA loan more than once. After you have used your VA entitlement you may use it to purchase another home if you have paid off the prior VA loan, or another qualified veteran is willing to substitute his or her entitlement for yours.
Reverse Mortgage Loans
A reverse mortgage loan is a special type of loan that pays the individual who has taken it out rather than the individual paying the bank. Essentially, the value of your home will be calculated, and you will be mailed a check each month representing a percentage of that value. These payments will continue until the entire value of the home has been paid, or until you expire. The following are a few pointers to remember about this type of loan:
- You Must be 65 or Older to Qualify
- You Must Agree to Live in the Home during the term of the Reverse Mortgage Loan
- You Cannot Sublet your Home
- If you die and are Survived by your Spouse, They will continue to Receive the Loan Payments
- You Can Continue Living in the Home Until your Death
- The Lending Institution will take Control of the Home following your Death
The Reverse Mortgage Loan is an outstanding way to spend your golden years with a little extra money, and it will not affect any other government payments that you are receiving. For example if you are receiving disability or social security, you may continue to receive your loan payments without interruption.
Conventional Mortgage Broker
The conventional mortgage broker will allow you to take out a standard loan with the normal 20% down on your property, unless of course your credit score or circumstances qualify you for a smaller down payment.
Fixed Rate Mortgage: When Applying for a mortgage this is the most common type simply because it remains at the same interest/repayment price for the life of the loan rather than changing with the market. Should the market price drop later you will be entitled to a refinance if you so desire.
Adjustable Rate Mortgage: This is also known as an ARM, and is used for short term ownership or jumbo loans. This type of mortgage will change along with the state of the market, making it unpredictable at best.
Loans of the conventional type can be taken out for any number of different reasons whether you want to buy your first home or are looking to do a renovation.
Jumbo Loan Mortgages
A jumbo loan, or a jumbo mortgage exceeds conforming limits which are set by Fannie Mae and Freddie Mac. The current limit in most parts of the United States sits at $417,000, but in some higher cost areas the limit is $625,500. The down payments on these loans are large, and in order to qualify, your credit score must be no lower than 700. In addition to that, you will need to be able to demonstrate your income/assets.