FHA
FHA Loans (Federal Housing Administration) are government-backed loans that
allow the borrower to have a minimum amount of money to put down on a home.
Some people believe that FHA is only for first time homebuyers, or for people
who have had credit problems in the past. Actually, FHA is a great loan
for everyone. Even if you’ve owned a home previously, and have perfect
credit, FHA may still be the best loan for you.
There are several advantages to an FHA loan. There is a low minimum down
payment (3.5% of the sales price of the home). The seller can contribute up to
6% of the purchase price toward the buyer’s closing costs and prepaid expenses,
which can significantly reduce your out of pocket expense. Streamline
refinances are available for FHA customers who have acceptable mortgage pay
history for the most recent 12 months. With a streamline refinance, there
are no employment or income requirements, and no appraisal is required.
It’s a great option to ensure your ability to take advantage of lower rates
down the road without having to re-qualify!
Conventional Loans
Conventional
loans, also known as "conforming loans,” are insured by Fannie
Mae and Freddie Mac, and have varying loan amount limits based on the
property’s location. In Texas, for
example, the conforming loan limit is $417,000. In San Francisco, where the median home prices are considerably higher,
the loan limit is $729,750. These loans
typically require PMI (private mortgage insurance) if the loan to value exceeds
80%, however, you may be able to obtain a conventional loan without PMI with
less than 20% down if a subordinate lien is obtained. You may have heard this
type of structure referred to as an 80-10-10. 80% loan with a
10% second lien and 10% down from the buyer. Give our office a
call to discuss your options.
VA Loans
VA loans are government-backed loans for qualifying veterans who have served
or who are serving in the 
United States military, and for qualified reservists.
A VA loan is a great product, and we believe that the men and women who serve
our country deserve the best financing available.
There are several advantages to a VA loan. The program does not require a
down payment, the seller may pay the buyer’s closing costs and/or prepaid
expenses up to 4% of the loan amount. In addition, the loan limits are
significantly higher than the FHA limits, and there are many closing costs that
VA does not allow the Veteran to pay, which reduces your out of pocket
expense. The Veteran can move into a home for as little as $1.00.
Whether you are currently serving in the military, have served in the past
with an honorable discharge, or are the surviving spouse of a Veteran, give us
a call to prequalify for the best loan available - you’ve earned it!
USDA Rural
Development Guaranteed Housing Loans
USDA Guaranteed Loans are Government insured 100% purchase loan. 
These Loans
are only offered in rural areas and serviced by direct lenders that meet
federal guidelines. As an approved
direct lender, we can extend 100% financing to rural individuals and
families. Other advantages to this
program are no down payment required, no monthly mortgage insurance, and
flexible credit and qualifying guidelines, closing costs can come from any source
including gifts, repairs and improvements can be included in the loan. These homes must be located in an approved
rural area. Call today to see about
qualifying! It’s a great way to purchase
in a rural area.
Jumbo Loans
A jumbo loan is defined as a loan whose loan amount exceeds the Fannie Mae
conforming loan limit. In Texas, the conforming loan limit is $417,000. In high
cost states, such as California, the loan limit is as high as $729,750. Many
lenders don’t have access to jumbo loan products, but Affiliated Banks has many
available, and at considerably lower rates than the competition. Give us a call
today to discuss jumbo options available.
