FHA or VA Loan For First Time Home Buyer Home Loan
FHA or VA Loan For First Time Home Buyer Home Loan - If you are a veteran and are buying your first home you have many different choices when it comes to home loans. Both FHA and VA offer great first time home buyer loans to veterans. What home loan is better for the first time home buyer FHA or VA?
Both FHA and VA loans can be scored through Automated Underwriting Systems.(AUS) Your mortgage professional can score you through both types and give you a comparison of your payments, etc.
VA loans currently have a higher maximum loan amount at $417,000. FHA loan limits vary by county and range from $200,160 to $362,790 for single family homes. Consult with your mortgage professional at 415-617-5448 to see which program best fits your needs.
Both FHA and VA loans have a financed Mortgage Insurance Premium. For FHA, this is referred to as your Mortgage Insurance Premium (MIP) and for VA loans it is called a Funding Fee. The VA does not charge a monthly mortgage insurance premium and FHA uses has a .5% monthly MI premium. These fees often work out to be significantly cheaper than conventional financing MI premiums.
As a veteran, in some cases, you can only use your VA letter one time to obtain a VA loan.
FHA and VA Loans for First Time Buyers -
First time homebuyers often experience the most difficulty amounting a significant down payment and everyone should have the opportunity to buy a home. For this reason the Federal government has developed two loan programs to assist homebuyers that have a little or no down payment. These programs are called the Federal Housing Administration (FHA) and the Veterans Administration (VA). These programs are not solely intended for first time home buyers; your home loan advisor will be able to determine if you qualify and if so which program is acceptable for your needs. FHA and VA loans can be especially advantageous when combined with a HFA or MCC first time homebuyer program.
Many FHA and VA borrowers can get into a home loan with zero money down.
FHA and VA loans are not credit score driven and are a great alternative to subprime loans.
Benefits of FHA Financing - FHA Loans, although not for everyone, have many different unique benefits. For instance, Lender "junk" fees and in some cases even attorney closing fees are reduced, resulting in savings to the consumer.
To find out if you qualify for an FHA home loan, please call 415-617-5448 to speak with a specialist in FHA mortgages. Even if you don't qualify for an FHA home loan, alternatives exist which can help you achive your financial goals with many of the same benefits as FHA loan programs.
There is no credit score requirement for an FHA Loan. Typically, the past 12 months are scrutinized. You need not have "traditional" credit established. You may qualify using alternative credit such as a cable bill, elelctric bill, cell phone, and rental history.
FHA financing will consider fiinancing loans on singlewide and doublewide mobile homes set on a permanent foundation. There is no rate or fee adjustment for this type of financing either. The mobile home must have been built after June 15, 1976.
FHA will consider purchase money financing for someone who uses a Non-Occupant Co-Borrower. In other words, you can have someone co-sign an FHA Loan to improve your chances of qualifying based on debt-to-income ratios. No income is necessary for the primary borrower if the Non=Occupant Co-Borrower qualifies on their own.
Gift funds can be used for your entire 3% down payment for an FHA loan.
FHA will consider financing for those who have a Chapter 7 Bankruptcy discharged for only 2 years for 97% Financing. FHA will also even consider financing for those CURRENTLY in a Chapter 13, provided they have permission from their trustee, at least 12 months timely Ch. 13 payments, and at least 12 months timely mortgage/housing payments.
Their is no monthly MI premium for 15 Year FHA loans.
For refinancing, FHA will consider financing up to 95% of the value of one's home for cash-out. There is no rate adjustment for financing up to 95% of their value of your home for cash-out. FHA's Mortgage Insurance Premium of 1.5% and monthly MI of .5 does not increase for any type of property or LTV.
FHA loans allow purchases of 1-4 unit properties with just 3% down and a seller comcession of up to 6%. There is no rate adjustment for a 4 Unit purchase with just 3% down.
FHA will often times over look certain bad credit accounts if there is a good reason for the delinquencies. This may require the borrower to write a letter of explanation or "LOX" as it is referred to in the mortgage industry.
FHA Financing can be an alternative to conventinal home financing. Ask Your Mortgage consultant about more information on FHA home financing
Benefits of VA Loan Financing - If you are a Veteran, a VA Loan may be a great fit for you to purchase a home. The VA guarantees a portion of the approved Loan, making it easier for a lender to extend credit. There are many benefits to using your VA Entitlement to obtain mortgage financing.
VA Loans may be used in refinance situations up to 90% of the appraised value.
VA Loans are assumable and do not have prepayment penalties. You may refinance or sell your home at any time during the mortgage.
VA Loans can be used for simultaneously purchasing and renovating a home.
VA loans currently allow for 100% financing for loans up to $417,000. There is no monthly mortgage insurance charge for VA financing. A one time VA funding fee is allowed to be financed into the loan amount.
Veterans from world war II to present can qualify for a VA loan as long as their discharge was honorable. Reservists must have 6 years of reserve service and either be still enlisted or have an honorable discharge. Reservists may pay a slightly higher funding fee then active duty applicants.
VA loans can still be used for purchasing a manufactured home if within HUD guidelines.
VA loans allow for up to a 6% seller concession on a purchase. The seller concession can even go towards paying down your current debt in order to help you qualify.