| Getting a new mortgage loan today can be confusing. | | | | a gift of the cash involved from a blood relative, your |
| Contrary to what you often see on the news lately, | | | | employer and some charitable agencies. |
| there are plenty of mortgage loans available. In fact, | | | | FHA (k) -- This is their new "streamlined" loan program. |
| there are too many to completely cover here. My aim | | | | It has all the same basics of a regular FHA loan plus |
| is to pull back the curtain and give you information on | | | | you can add up to $35,000 in home rehabilitation or |
| the programs I think are some of the best available. | | | | remodeling costs to your loan as long as the work is |
| VA -- Still a great program, designed for the veteran. | | | | completed with in 30 days. The maximum loan though |
| It's the one place a veteran can get a home loan up to | | | | is still $289,000 including the repairs and improvements. |
| $729,000 at a reasonable interest rate and 0% (that's | | | | This program is great for buying damaged foreclosed |
| Zero Percent) down payment. There are no PMI | | | | homes. |
| charges required as there are on FHA and | | | | CONVENTIONAL -- There are way too many |
| Conventional loans of more than 80%. There are less | | | | conventional loan programs to cover here, but if you |
| strict credit qualification standards for veterans and | | | | have the time and can find a good independent loan |
| lower income requirements. The loans have no | | | | broker, he will take your qualifying information and |
| prepayment penalties. In Texas and a few other | | | | comb through the many programs offered and give |
| states, there are also veteran's programs (that include | | | | you a synopsis of the ones that best suit your needs. |
| National Guard and Army Reserve members) for | | | | I'll be giving some tips on finding a good loan broker in a |
| purchases of land and homes with loans insured by | | | | future article. |
| the state. | | | | INCENTIVES -- Don't forget about the tax credit. This |
| FHA -- For the non-veteran, FHA is still the best, | | | | is a credit for new home buyers (someone who hasn't |
| offering a 30 year fixed mortgage with a 3-1/2% | | | | owned a home in 3 years). The incentive under the |
| down payment plus 1.75% PMI up front, or 5.25% total | | | | Bush package was $7500 tax credit for buying a |
| down. They allow the seller to absorb 6% of your | | | | home and it had to be paid back in payments over 7 |
| closing costs and some prepaid items, so if you are a | | | | years. Under the new stimulus program that was |
| good negotiator, it's possible to get into a home for no | | | | changed to $8,000 and you don't have to pay it back. |
| more than 5.25% of the sale price. FHA loan limits | | | | That means whatever you normally pay in taxes for |
| aren't as high as VA but are still substantial at | | | | the next year after you buy a home you get the first |
| $289,000. They are a little more relaxed on credit | | | | $8,000 of it back. |
| requirements than on conventional loans. If you put a | | | | Don't be discouraged by what you hear on the news, |
| little more down, like 10%, you can avoid the up front | | | | good loan programs are out there, and now is a very |
| 1.75% PMI charge. They will also allow you to receive | | | | good time to buy a home. |