Government loan programs

FHA loans

FHA is by far the best loan available in today's market.

"Contrary to Popular opinion, FHA is now for everyone, not just the low income borrower." According to James Hennessy. with the new loan limits, FHA is relevant to a much wider spectrum of borrowers. there are no income limits, rates and terms are great. FHA's 97% LTV carries over to the new FHA-jumbos (until year end). FHA may be the White Knight you are looking for because it is offering a host of refinance alternatives to people in current conventional jumbo loans who desire a lower monthly payment.

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.

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 percent down payment is required.
Closing costs can be financed.
Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancelation of the premium.
More flexible underwriting criteria than conventional loans
FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
Loans are assumable to qualified buyers.

FHASecure Loan Program

many Americans are currently facing interest rate resets, it's hard to keep up with the mounting monthly mortgage payments. There may still be a way to save your home.

FHASecure is a new FHA mortgage refinancing option enacted on August 31, 2007 to assist home owners who are now facing a mortgage default or foreclosure due to the mortgage payment adjustment of the Interest rates on there existing loans.

Who Should Use the FHASecure Refinance Program?

If you match any of the following statements, the FHASecure Loan maybe able to help you.

Currently late and behind on mortgage payments?
Interest rate increase has caused you to go into mortgage default or foreclosure?
Have little or no equity in your home?

If any of the above is your current situation, then the FHASecure loan may allow you to refinance your home at competitive mortgage rates even if other mortgage lenders have said no. Below is the FHASecure loan qualification guidelines.

FHA Secure Refinance Program Guidelines

In order for homeowners to qualify for the FHA Secure home loan refinance, you must meet all of the following five FHA Secure refinance criteria:

Your mortgage interest rate must have or will reset between June 2005 and December 2009.
You must have three percent cash or three percent equity in the home.
You must have a credit history of on-time home mortgage payments before your mortgage teaser rates expired and home loan reset;
A sustained history of employment for last two years
Sufficient income to make the new FHA Secure mortgage payment.
New mortgage loan amount cannot exceed current FHA loan limits.

The new FHA Secure refinance program will require an escrow impound account for property taxes and insurance as well as FHA MIP - mortgage insurance premium to be included in new mortgage payment.

All FHA Secure home loans will not have any mortgage pre-payment penalties as is traditional with FHA loans.

If you meet the required guidelines you may request additional information regarding this FHA Secure loan program click here

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.