Mortgage product fundamentals – part 2

Coldwell Banker Mortgage Advisor Steve Nimmer NMLS # 186680 ph. # 912-604-3834 comes through with part two.

Federal Housing Administration (FHA) and Veterans Affairs (VA) loans are both backed by the government and offer similar benefits, including the potential of being a more affordable option for those who qualify.
FHA loans overview

FHA loans can be very appealing to new homebuyers. The federal government insures mortgages for FHA-approved lenders to reduce their risk of loss if borrowers default on their mortgage payments.
Benefits:

• Lower down payment
• Lower monthly mortgage insurance fees than with conventional loans
• More flexible debt-to-income ratios
• More relaxed credit requirements
• Competitive interest rates

General eligibility requirements include:

• Two years of steady income
• Proof of funds for down payment and closing costs
• Bankruptcies must have been discharged for at least two years
• More flexible debt-to-income ratios than for many other types of loans

VA loans overview

VA loans are available to those who served or are currently serving in the U.S. military. The VA does not lend money for VA loans; it backs loans made by mortgage lenders to veterans who qualify.
Benefits

• No money down
• No private mortgage insurance (PMI)
• Competitive interest rates that may be lower than conventional rates
• No prepayment penalties
• More flexible debt-to-income ratios than for many other types of loans

Eligibility requirements include:

• Certificate of Eligibility from the VA to prove eligibility for a VA loan
• The home must be a primary residence
• Ability to meet income requirements and must have a good credit record

Buyers should consult a trusted lender early in the home search process for more information and to find out about the types of home loans which may be right for their needs, including fixed rate and adjustable rate mortgages.

Useful information you need to make an educated decision. And if you live in the Savannah, GA MSA and are ready to buy give me a call 912-352-1222.


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga