With so many programs to choose from it seems like picking the right loan program for you can be quite the chore. When I talk to my clients I give them choices. I tell them the important factors of each loan so they can make the best possible decision for their needs.
On this page I will list each program I offer. I will explain the key factors of each. You can click the drop down list under the loan programs tab at the top of the page to select the program you want to learn more about or click the program name below. You will be directed to the page that shows more detailed information about the program.
Loan program details are subject to change. Please contact me for up to date loan program information.
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FHA (Federal Housing Administration) Loans are insured by the government. They allow higher loan to value ratio's and flexible guidelines making them easier to obtain. These loans are available to any borrower whether they are purchasing their first home, currently own a home, or have owned in the past.
HUD (Housing and Urban Development) governs this loan program. They establish the minimum rules to insure the loans. They do not issue the loans. Lenders loan their money to borrowers and FHA insures the loans against default. This program is always available since the loans are not funded by the government. Lenders can establish guidelines that are more restrictive than what FHA requires.
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VA (Veteran Affairs) Loans are guaranteed by the government. They allow higher loan to value ratio's and flexible guidelines making them easier to obtain. These loans are available to Veteran's who have served 2 years of active duty in the military and that have an other than dishonorable discharge.
The United States Department of Veteran Affairs governs this loan program. They establish the minimum rules to guarantee the loans. They do not issue the loans directly. Lenders loan their money to borrowers and VA guarantees them. This program is always available since the loans are not funded by the government. Lenders can establish guidelines that are more restrictive than what VA requires.
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USDA Loan
USDA (United States Department of Agriculture) Loans are funded by lenders and purchased by the government. They allow higher loan to value ratio's and flexible guidelines making them easier to obtain. These loans are available to borrowers who do not currently own a home and have not owned a home in the past 3 years. USDA nicknames this program as a Rural Development Loan. They have geographical and income restrictions.
HUD (Housing and Urban Development) governs this loan program. They establish the minimum rules to guarantee the loans. They do issue some loans directly but not the majority. Lenders loan their money to borrowers and USDA reimburses the lender. This program is not always available because they use funds from the government to reimburse the lender. Lenders can establish guidelines that are more restrictive than what USDA requires
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Conforming Loans are funded by lenders and purchased by Fannie Mae or Freddy Mac. These loans may be insured by PMI (Private Mortgage Insurance) Companies. They are available to anyone and anywhere.
Fannie Mae and Freddy Mac set the minimum guidelines to purchase these loans. They do not issue the loans. Lenders loan their money to borrowers and Fannie Mae or Freddy Mac purchase the loans. PMI insures some of the loans against default. This program is always available since the loans are not funded by the government. Lenders can establish guidelines that are more restrictive than what Fannie Mae or Freddy Mac require.
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Private Loans or Portfolio Loans are issued by lenders who take the risk of the loan upon them self. There is no other insurance or guarantee to protect these loans against default or loss. These loans may or may not be sold to investors. Whoever issues them establishes the guidelines for obtaining them.
I do not offer any of these loans. Over the past few years these loans have become less and less available. A good source for these loans could be a small bank or an independent investor.
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