Thursday, July 17, 2008

DIFFERENT INDIVIDUALS DIFFERENT TYPES OF LOANS

Do you want to know what types of loans are available to you? Well let me start off telling you that there are many different types of loans. Some of the most popular loans are the FHA Federal Housing Administration and VA Veteran Affairs loans. These loans are backed by the Federal Government; generally they are lower interest rates, have lower mortgage refinancing rates, and lower mortgage fees, than other mortgage brokers. These are the Conventional loans: Fannie Mae, Federal National Mortgage Association, is the common name used for this type of loan. Fannie Mae is a shareholder-owned company and is congressionally chartered the company buys mortgages from lenders and resells them as securities on the secondary market. Fannie Mae looks at a number of factors to determine if the individual qualifies. They will use debt to income ratio, credit ratings, and employment history. Mortgages that are approved by Fannie Mae should qualify for better interest rates. Freddie Mac, Federal Home loan Mortgage Corporation, buys mortgages from lenders and resell them as securities on the secondary market. Freddie Mac like Fannie Mae looks at generally the same financial factors. You should still get a better interest rate with Freddie Mac approval. A mortgage company can help you find the best rate from various lenders for Freddie Mac Mortgage as well as Fannie Mae loans. The lenders can help you determine if you are eligible for a mortgage. AdvantagesFHA loans have some advantages over conventional mortgage loans. Because FHA loans are insured by the government, they generally have less stringent qualification and requirements, lower down-payment requirements, and they are assumable mortgages. The maximum mortgage amount for an FHA mortgage (single family) ranges vary depending on the city you live in. You can contact a mortgage specialist for these maximum amounts for your specific city. Government mortgages, including the FHA mortgage, make up 20 percent of residential mortgages in the U.S.VA mortgage carries many of the same advantages as an FHA home mortgage. There are other qualifications you must meet before being considered. You must be a Public Health Service Officer, an active-duty serviceman, an unmarried widow of a veteran, or a qualifying veteran. The maximum loan amount is $240,000. If you can make a large payment VA is now considering mortgage amounts above $340,000. Normally you would need to put down 20% of the value exceeding $340,000, and must not exceed the conventional mortgage limits. No down payment is required for most mortgages below the $340,000 limit. The Non-Conforming mortgage or jumbo mortgage conventional loan that is too large for governmental agencies are termed this way. At present any mortgage over $350,000 are classified as such. Jumbo loans have higher interest rates than conforming mortgages. From .5% to 1% higher. Jumbo mortgages also have higher down-payment requirements. You have all of these different loans to choose from but as usual make the right decision for you. Apply your research online, use the valuable information listed here, home buyer defense guide, mortgage loan tips, mortgage secrets exposed and become even more informed than you already are, be a smart borrower.

Happy Surfing,