Types Of Mortgages Available

Types of​ Mortgages Available
Types of​ Loans
What types of​ loans are available to​ me? There are many different types of​ mortgage offered to​ consumers .​
Some of​ the​ most popular mortgage broker are the​ FHA Home Loan (Federal Housing Administration) and the​ VA Loan .​
Because the​ FHA mortgage and VA mortgage are guaranteed by the​ government,​ borrowers are able to​ make a​ smaller down payment,​ and take advantage of​ more relaxed credit and asset requirements than traditional conventional loans. .​
Details about the​ major types of​ loans,​ including FHA mortgage and VA mortgages,​ follow.
Conventional loans generally are considered loans with loan amounts at​ or​ under the​ maximum loan amount available for purchase by Freddie Mac or​ Mannie Mae .​
Fannie Mae is​ the​ common name of​ the​ Federal National Mortgage Association .​
Fannie Mae is​ a​ congressional chartered,​ shareholder-owned company that buys mortgages from lenders and resells them as​ securities on​ the​ secondary home mortgage market .​
Before approving you,​ Fannie Mae looks at​ a​ number of​ factors including credit ratings,​ debt ratio,​ and employment history.
Freddie Mac Freddie Mac is​ the​ common name for the​ Federal Home Loan Mortgage Corporation .​
The 2018 maximum loan amount for both Fannie Mae Mortgage and Freddie Mac company is​ $417,​000 .​
Freddie Mac does not issue mortgages directly,​ rather,​ they buy mortgages from lenders and resell them as​ securities on​ the​ secondary mortgage market .​
Before approving you,​ Freddie Mac looks at​ a​ number of​ different factors including credit ratings,​ debt ratio,​ and employment history.
Government guaranteed loans .​
FHA,​ VA loans .​
An FHA mortgage (Federal Housing Administration) has some advantages over conventional mortgage .​
Since FHA Mortgage are insured by the​ government,​ they generally have more lenient qualification and requirements,​ lower down-payment requirements,​ and they may be assumable .​
The maximum mortgage amount for an​ FHA mortgage varies depending on​ the​ city where you​ live .​
As your mortgage broker on​ what these maximum amounts are for your specific city .​
FHA loans are very popular with first time buyers .​
They also make great sense if​ you​ are buying a​ multi family property to​ live in​ and want to​ get maximum financing .​
Mortgage insurance on​ an​ FHA loan is​ the​ same no matter what loan to​ value your loan is,​ something that is​ not the​ case with a​ conventional loan .​
High LTV's pay a​ far greater insurance payment.
A VA (Veterans Affairs) mortgage carries many of​ the​ same advantages as​ an​ FHA home mortgage .​
However,​ to​ qualify for this mortgage,​ you​ must be a​ qualifying veteran,​ the​ unmarried widow of​ a​ veteran,​ or​ an​ active-duty serviceman .​
Talk with your mortgage broker on​ maximum loan limits,​ required down payments (if any) and what your funding fee will be .​
VA loans do not have a​ mortgage insurance payment,​ instead borrowers pay a​ one time fee for their insurance What percent of​ the​ loan amount varies,​ currently it​ will not exceed 4% .​
These are different than origination or​ discount points.
Non-Conforming / Jumbo mortgage are loans where the​ loan amount is​ greater than the​ conforming loan limit .​
$359,​650 currently for a​ single family .​
So if​ you​ need to​ borrow $500,​000 to​ purchase your new home,​ it​ will be a​ jumbo loan .​
Jumbo loans typically have interest rates slightly higher than conforming loans,​ about 1/2 percent higher .​
If you​ will be borrowing this much money you​ should ask your broker if​ you​ could split up your loan into a​ 1st .​
and a​ 2nd .​
mortgage to​ avoid needing a​ jumbo loan and avoid the​ increase interest cost.
A mortgage broker can help you​ find the​ best rate and product to​ fit your situation .​
Ask them about what are your options.

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