Government Loan Broker

Newsweek: How our homeownership fetish hurt us
In some ways, American homeownership is a great success story. In 1940, 44 percent of households owned a home; by 1985, the rate was 64 percent. The size and quality of homes have increased dramatically. Owning a home contributes to neighborhood stability and encourages property improvement. Unfortunately, we let a sensible goal become a foolish fetish. United States – Newsweek – Business …

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Many people are kept out of the housing market due to lack of sufficient down payment and/or funds available for closing costs. Yet these potential homeowners can afford to make a rental payment that would be equivalent to a mortgage payment. In fact, the lack of resources keeps veterans renting instead of becoming owners as they try saving money to buy a home. Meanwhile home prices continue to appreciate as housing continues to rise in cost.

Here is where the Veteran Home loan program excels over competing loan products. VA mortgages allow for a home to be financed in one loan up to 100% of the acquired home’s value. In addition, the seller is allowed to pay most-if not all-of the closing costs and prepaid items. This means little to no cash out of pocket. Most housing types are eligible: residential homes, condominiums, townhouses, manufactured homes, new construction and even 1-4 unit rentals (additional conditions apply). If lack of available funds is the issue preventing home ownership, VA Loans offer the solution.

Still, very few veterans take advantage this type of mortgage. It is a shame that more veterans don’t familiarize themselves with this benefit. The interest rate is the same or lower than most conventional financing. The mortgage products offered range from 10-30 year fixed rate mortgages, ARM’s (adjustable rate mortgages), and even temporary buy-downs are allowed. The eligible loan amount is the same as a conforming conventional loan-currently at 417K. In addition, VA financing can be used for refinancing existing homes. As you can see, the product isn’t the problem. The product is as competitive as most that is available. The lack of awareness is the problem. Ask your mortgage broker or lender to explain your options. If they don’t offer the VA mortgage, then find someone who does. We at Venture Development offer VA loans. In the end, you may end up with a conventional or FHA loan if these products are better suited for your situation. Until you compare mortgage options you won’t know what is right for you.

Another advantage of a Veteran mortgage is the flexibility found within the underwriting process. Employment history is very flexible. Credit for all types of mortgages is more stringent today than in the past. That being said, the focus is going to be on the last 12 months of payment history. Underwriting can use alternative sources of credit such as utility bills and cancelled checks if the credit depth is weak. A prior BK or foreclosure is also forgivable. Depending on the type of bankruptcy, you would be eligible one to two years following your discharge date if you’ve reestablished positive credit.

Who is eligible to obtain this loan? Many veterans and even some of their spouses can obtain a veteran mortgage. Here is a very short list of who is eligible: Veterans who served during WWII, Korean Conflict, Vietnam War, or Persian Gulf Conflict AND who have served 90 days of active duty, or have been honorably discharged, or were National Guard/Reservists activated. Veterans with service during Peacetime periods and active duty military personnel must have had more than 181 days of consecutive active service before becoming eligible. Reservists and National Guardsmen are eligible after 6 years of enrollment in a selected service. There is even a program for non active duty spouses. Consider this: an un-married spouse of a veteran who died while in service or from a service connected disability or a spouse of a service person who is considered MIA/POW for at least 90 days are also eligible.

Veterans have spent a part of their live defending our way of life. Freedom isn’t free. Why shouldn’t they be allowed to participate in the very same American Dream that they selflessly protected for you and me. The VA loan was created to help those that have helped all of us. Collectively we can spread the word about the benefits of this unique type of loan.

FHA Mortgage, FHA loan, FHA home loan, FHA mortgage Loan, FHA Mortgage lender,

FHA home loans are alternatives to conventional financing for your Florida home purchase. The FHA (Federal Housing Administration) helps to make low cost Florida home loans available to thousands of new Florida  and current Florida homeowners each year. FHA mortgage loans require minimal down payments of only 3% and the interest rate is typically better than prevailing conventional mortgage rates.

For the Florida home buyer the FHA program can simplify the purchase of buying a Florida home, making financing easier and less expensive than a conventional Florida mortgage. here are some highlights of the Florida FHA mortgage program:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:  

No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.

 http://www.FHAmortgageFHAloan.com

The most popular FHA mortgage loan is the 203(b) also called FHA fixed rate mortgage loan. The FHA Mortgage loan often works well for Florida first-time homebuyers because it allows Florida homebuyers to finance up to 97 percent of their home loan, which helps to keep the mortgage payments low and closing costs to a minimum. This type of  FHA financing is called the FHA 203B home loan is also the only loan in which 100 percent of the closing costs can be paid for by the seller.

FHA 203b mortgage is the centerpiece of FHA single-family mortgage insurance program. It developed from the original FHA mortgage loans that helped save Florida homeowners from default during the great depression, and today the FHA mortgage loan  is helping revive the Florida mortgage market. FHA mortgage applicants can purchase a One- to Four-Family Mortgage that allows the Federal Government to expand homeownership opportunities for Florida first-time homebuyers and mortgage applicants who would not otherwise qualify for a conventional loans under affordable terms. FHA One- to Four-Family Mortgage also serve homebuyers who live in areas where mortgages may be harder to obtain.

FHA mortgage Fixed Rate Benefits

FHA loans allow for Lower \Down Payment
In contrast to conventional Florida mortgages which frequently require 10% or more of the purchase price as down payment, FHA mortgage insures under the FHA mortgage 203(b) can have down-payments as little as 3%. In some cases, FHA insurance allows Florida homebuyers to finance approximately 97% of the mortgage amount.

FHA Finances Your Closing Costs
With most conventional loans, FHA mortgage applicants must pay closing costs, which include many fees and charges associated with buying a home, equivalent to 3.5% of the price of the Florida home. Fixed Rate FHA Mortgages allows the Florida mortgage applicant to finance much of their closing costs, thus reducing the up-front cost of buying a Florida home. FHA mortgage insurance is not free: Florida Mortgage applicants pay an up-front insurance premium (which may be financed) at the time of purchase, as well as  mortgage monthly premiums that are not financed but added to the regular Florida mortgage payment.

FHA Limits the FHA Lenders Fees
FHA Lenders imposes FHA limits on some of the fees that lenders may charge the Florida mortgage applicants. For example, the FHA loan origination fee charged by the Florida mortgage lender for the administrative cost of processing the loan may not exceed 1% the amount of the mortgage.

FHA Protects Mortgage Amounts
To make sure that FHA mortgage loans serve low- and moderate-income Florida families, FHA sets Florida mortgage limits on the dollar value of the mortgage loan. FHA/HUD sets limits on the amount that may be insured. FHA loan limits are there to protect Florida homebuyers, and may vary over time and by place, depending on the cost of living and other factors (higher limits also exist for two- to four-family properties).

 About
The FHA mortgage insures more than a million Florida home loans. The FHA  agency has helped originate more than 33 million since it was created in 1934. The FHA mortgage program does not fund the mortgage loans itself. However, FHA insurances private FHA mortgage  lenders so they will not incur any loss if the Florida mortgage applicant defaults. In this way, FHA mortgage lenders are encouraged to make loans to low and middle income Florida mortgage to whom they would not otherwise extend a mortgage loan..

Florida homebuyers of single family homes can put as little as 3% and the seller can over up to 6% of the buyers closing cost and prepaid taxes and insurance. Good credit history is not necessary to qualify for FHA financing, although is definitely a “PLUS.” Income to loan payment, and to total monthly payment, ratio requirements make it easier to qualify than for conventional mortgage loan. Visit http://www.fhamortgageprograms.com/ to learn more about FHA qualifying in Florida.

This sounds pretty good, right? But keep in mind that  FHA requires that Florida homes be in livable, habitable, moving condition Largely because of this, most Florida sellers will not accept an offer if the buyer intends to obtain an FHA mortgage . The acronym “FHA” unfortunately has acquired bad connotations for many real estate professionals and their clients.

Also, the FHA severely limits how much the lender can charge in fees. The bank cannot lose money because of the FHA insurance. However, it cannot profit as much as when it commits its money to other mortgage loans. Lenders have to be FHA-approved in order to make FHA mortgage loans. Few Florida mortgage lenders are FHA approved..

However, there is a big exception to this circumstance. The FHA serves locales (and, of course, the people who wish to obtain FHA financing for homes in these areas) that would not otherwise be attractive to Florida mortgage lenders. Most very large, big city lenders are FHA-approved, and a significant portion of the home loans that they originate are FHA mortgage loans.