Weston Mortgage Broker - Pre Approvals, Refinances, & Purchases
With a five star rating on Zillow, it should come as absolutely no surprise that we not only specialize in finding the best mortgage deals for would-be homeowners, and that we are the best of it. There are many different types of home loans out there, and as a new homeowner, it might be difficult to find a balance between the perfect price and the perfect house. Still there are others who are not looking for the perfect house, but rather the perfect mortgage situation for a home that they already own. Let’s examine a few of the most common mortgage types and situations.
FHA Loans & First Time Home Buyers
For the first time homebuyer, especially someone who has limited access to funding, and FHA loan can be a lifesaver. The federal Housing Administration insures loans for FHA-approved lenders so that the lender’s risk maybe reduced in the event of a default. The sole purpose of this form of loan is not necessarily to help the homeowner, but rather to stimulate the housing market. FHA loans are very popular today, especially with first-time buyers.
The FHA loan is now one of the easiest loans to qualify for due to the low down payment and the less strict credit requirements. The typical down payment on any home is about 20 percent, but if a buyer cannot afford that, it is assumed that the FHA loan is the best option, assuming that the individual filing the application is able to meet the requirements.
There are several requirements for those looking to obtain an FHA loan, the most obvious being a steady employment history. To qualify, you must have held the same job for the past two years with the same employer, and you must also be able to make a minimum down payment of 3.5%. In addition to that, you need to be at least two years out of bankruptcy(if you have filed) and you should have a minimum credit score of 580.
VA Loan Mortgage Broker
The VA loan was first launched in 1994, through the Servicemen’s Readjustment act, more commonly known as the GI bill of rights. It was signed into law by President Roosevelt and was designed to provide veterans with a federally guaranteed home requiring no down payment. The American dream is still alive and well today for those who are willing to take advantage of it, though as an ex service member you will need to ensure that you qualify. For example you will need to furnish your social security number(s), residence for the last two years, the names of your employers, gross salary, your DD-214, etc.
Those who have served our country honorably have the right to not only live here, but also raise a family in a home environment. The VA loan will give you that opportunity.
Reverse Mortgage Loans
The reverse mortgage loan is more of an ‘end of life’ solution that senior citizens can enjoy assuming they meet the qualifications, one of which is being age sixty-five or older. The general idea is that those eligible will apply for a reverse mortgage loan and if successful, they will be sent a monthly check based on the value of their home. This check will not affect or interfere with any social security payments or disability earnings that the individual is currently entitled to. The payments stop once the individual is deceased or the value of the home is fully paid; whichever comes first.
It should be noted that the reverse mortgage loan will continue after death if there is still a living legal spouse. Once all involved are deceased, the home will become the property of the lending institution. During your reverse mortgage loan you will be responsible for all property taxes and failure to pay them could endanger your agreement with the lending institution.
This is an outstanding option for those who are simply looking to add a little extra security onto their income and can afford to lose the home after the mortgage is complete. All in all, it’s a great deal for your golden years.
Conventional Mortgage Broker
The conventional mortgage broker is the one you hear about most often and there are plenty of different options. In these situations you, as the potential homeowner, will need to be able to put down twenty percent of the home’s value before you are considered eligible for the loan in question. There are two major types of loans to consider:
Fixed Rate Mortgage: With this type of loan you will choose to pay whatever the current conventional rate happens to be, and it will not change throughout the life of the loan unless you choose to refinance.
Adjustable Rate Mortgage: This is also known as an ARM, and your monthly payment will change depending upon the state of the market. This is typically only used for short term residencies.
Jumbo Loan Mortgages
Conventional mortgage sizes have simply become too small as of late, meaning more and more potential homeowners are needing to seek out the comfort of jumbo loans. A jumbo loan is for those seeking properties costing well over one million dollars. Keep in mind that a jumbo loan is not a commodity, and is typically only provided by larger banking institutions. You must additionally be prepared to pay for an ARM, as most jumbo loans will never be fixed rate.