Stay connected and up to date with all the latest changes to Fannie Mae, Freddy Mac, FHA, VA & USDA Rural!

Government loan programs

FHA loans (Our most popular puchase and refinance product)

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans. Tough in today's market FHA loans have become much more universally useful to borrowers of all income ranges.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:

• Only a 3.5 percent down payment is required. This number changed to 3.5% in January 2009.
• Closing costs can be financed.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• More flexible underwriting criteria than conventional loans
• FHA limits the amount lenders can charge for certain closing cost fees.
• Loans are assumable to qualified buyers.
• Eligible for future Stream Line Refinancing (This is a key benefit call TODAY for more details-401-965-9384 or Email me)
• Cashout refinances to 85% of the homes value

USDA Rural

A great option for folks in the low to moderate income range. This government program is similar to FHA, but has a heavy focus on property location and borrower income. It allows for 100% purchase financing, and has NO monthly mortgage insurance. Call to see if you, and the home you are looking at qualify? Borrowers must meet certain income and geographic requirements.

Key Benefits:

• No monthly mortgage insurance
• Up to 6% Seller Concession on purchases
• No down payment requirement
• Click HERE to see if your tageted property is eligible

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Negotiable interest rates.
• Closing costs are comparable and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

Fannie and Freddy

On the short term, the recent government bail out of these 2 industry giants, has done wonders for the residential mortgage industry. However, the program guidelines remain stringent and the reduced income document programs are no longer available. Banks and investors are still calling for more conservative underwriting guidelines as we ride out the industry changes and economic challenges. The implementation of the Fannie Mae Loan Level Price adjustments make this loan the best option for loans that are less than 80% of the appraised value.

Please keep in mind, that as your Personal Mortgage Consultant, I know the sweet spots among all the lending platforms. No one agency is perfect for every borrower, and no bank or lending institution will remain static. It has never been more important to have a tried and true mortgage professional at your side. Allow me to guide you in the right direction.

Warm regards,

-The Friendly Neighborhood Mortgage Guy

401-965-9384 Cell

swheelan@tmgltd.biz Email