Let's Discuss if Government Mortgages are Right  for You!


Pamela J. Gordon

941.758.0600 office   248.770.7066 mobile/text   888.738.2845 eFax

pam@thegordongroupinc.com

MORTGAGE SPECIALISTS      NMLS#328599
27 Years of Professional Creative Real Estate Financing in Florida and Michigan


The Veterans Administration helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of their mission to serve you, they provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a primary home for your own personal occupancy. The VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.


VA Purchase Loans help you purchase a home at a competitive interest rate often without requiring a downpayment or private mortgage insurance. Cash Out Refinance loans allow you to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements.



FHA and VA Mortgage Programs

    Low Down Payment and No Down Payment Government Loans


The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. Learn more about FHA loan requirements and guidelines.


FHA insured loans require mortgage insurance to protect lenders against losses that result from defaults on home mortgages. The initial mortgage insurance is 1.75% of the loan amount that is added onto the mortgage amount and increases the amount that you owe.  The monthly mortgage insurance rates can vary with the loan type, but the average is 1.35% of the initial mortgage amount per year divided by 12 and added to your monthly payments of principal, interest, taxes and insurance.


FHA lending limits vary based on a variety of housing types and the state and county in which the property is located.  In both Florida and Michigan you can borrow up to $417,000 with a FHA mortgage.

 

FHA loans are not the right choice for everyone.  They are one of the several options for low down payment or no down payment loans. You can purchase a home with as little as 3.5% down payment.  The interest rates on FHA loans tend to be lower than on low down payment conventional mortgages.  However, if you have great credit scores, the mortgage insurance on a FHA mortgage is higher than on a conventional  mortgage with 5% down payment and makes your total monthly payment, as well as your total mortgage amount higher.  But, FHA mortgages are a bit more forgiving for credit issues so they are especially appropriate for people whose credit scores may be slightly less than perfect.  FHA mortgages also allow some conditions that conventional loans do not.  That is why we are always evaluating every situation for the best option.


FHA allows you to purchase several different types of properties.  Condominiums must be on their approved list.  You can also purchase a single family home or a 1 to 4 unit residential property.  You must be purchasing the home for your primary property.  FHA mortgages are not for vacation homes or investment properties.  There are special programs for homes that need rehabilitation or minor improvements.


Interest Rate Reduction Refinance Loan (IRRRL): also called the Streamline Refinance Loan can help you obtain a lower interest rate by refinancing your existing VA loan.


Native American Direct Loan (NADL) Program: helps eligible Native American Veterans finance the purchase, construction, or improvement of homes on Federal Trust Land, or reduce the interest rate on a VA loan.


Adapted Housing Grants: help Veterans with a permanent and total service-connected disability purchase or build an adapted home or to modify an existing home to account for their disability.


The length of your service or service commitment and/or duty status may determine your eligibility for specific home loan benefits.