LOAN PROGRAMS

Government

How Do You Know If An FHA Loan Is Right For You?

The Federal Housing Administration (FHA) offers a number of programs that promote home ownership. Because it requires a relatively small down payment, an FHA loan might be the perfect way for you to purchase your first home, or your next home.

FHA home loans are insured against home owner default by the FHA. This protects the lender from financial loss and increases your chances of being accepted. You are charged an upfront mortgage insurance premium that is included in your monthly payment.

It's not difficult to qualify for an FHA loan

  • You will need a decent credit history, (but it does not have to be excellent)

  • You will also need a reasonable debt-to-income ratio

You will likely be approved for a home loan relative to the market prices of homes in your search area. Family Finance Mortgage can help you determine the FHA mortgage limits for your region.

FHA loan benefits

  • The ability to purchase with a down payment as low as 3.5 percent

  • Lack of prepayment penalties

  • FHA loans may be assumable by another buyer if you decide to sell

  • More relaxed credit qualifications than conventional loans

Contact us today to see if you qualify for an FHA home loan.

According to American Census Bureau data, many veterans have not taken advantage of VA loans over the past three to four years. Only 10 percent of eligible veterans utilized the benefit in 2009.

Since then those numbers have improved little. However, with expert loan consultants like those from 1st Point Lending Inc., the statistics are bound to improve. For veterans who qualify for these special loans, a host of handsome advantages lie in store. Get started today!

VA loan advantages

The best feature of VA loans is they often require no down payment. With a VA loan, out-of-pocket expenses are likely to be nil. As your 1st Point Lending Inc. advisers will explain buyers can save thousands of dollars over the term of their loan.

1st Point Lending Inc. advisers may help new buyers assume the loans of veterans who plan to sell their properties early. In order to make the most of benefits associated with VA loans, it is essential to partner with expert loan advisers who can guide veterans correctly and efficiently. Contact us today to find out if a VA loan is right for you.

Five easy steps to a VA loan

  1. Apply for a Certificate of Eligibility. A veteran who doesn’t have a certificate can obtain one easily by completing VA Form 26-1880, Request for a Certificate of Eligibility for VA Home Loan Benefits and submitting it to one of the VA Eligibility Centers with copies of your most recent discharge or separation papers covering active military duty since September 16, 1940, which show active duty dates and type of discharge.

  2. Decide on a home the buyer wants to buy and sign a purchase agreement

  3. Order an appraisal from VA. (Usually this is done by the lender.) Most VA regional offices offer a “speed-up” telephone appraisal system. Call the local VA office for details.

  4. Apply to a mortgage lender for the loan. While the appraisal is being done, the lender (mortgage company, savings and loan, bank, etc.) can be gathering credit and income information. If the lender is authorized by VA to do automatic processing, upon receipt of the VA or LAPP appraised value determination, the loan can be approved and closed without waiting for VA’s review of the credit application. For loans that must first be approved by VA, the lender will send the application to the local VA office, which will notify the lender of its decision.

  5. Close the loan and the buyer moves in.

Reverse mortgages are becoming popular in America. Reverse mortgages are a special type of home loan that lets a home owner convert the equity in his/her home into cash.

They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more.

With an interest rate established at the loan closing, and fixed for the life of the loan, this HECM provides homeowners with peace of mind. You’ll always know exactly how much interest is accruing on your loan. However, with a HECM Fixed Rate, you are required to take all of your money at closing in one lump sum.

This may be a desirable choice, if you’re using your HECM to pay off a larger existing mortgage or cover other immediate needs. The interest rate on this HECM fluctuates on a monthly basis, but it also offers more options for homeowners.

You can choose a lump sum draw, line of credit, monthly payment, or a combination of these options. For example, you might choose to take some of your cash up front and put the rest in a line of credit, so it’s available when, and if, you need it.

You only accrue interest on the money that you actually take. This HECM helps you purchase a new home that will better fit your future needs by taking out a loan on that home. Both the purchase and the HECM are handled in one transaction.

Eligibility Requirements

To be eligible for HECM, you’ll need to meet requirements set by the federal government:

  1. All borrowers must be age 62 or older (this applies to all co-owners listed on the home’s title).

  2. The home must be your principal residence. And it must meet standards set by the U.S. Department of Housing and Urban Development (HUD) on property type and condition. You can, however, user your HECM to pay for any required repairs in order to meet these standards.

  3. Eligible property types include single-family homes, 2-4 unit properties, manufactured homes, condominiums and townhouses.

A reverse mortgage loan can help:

  • Supplement retirement income

  • Pay off an existing mortgage or other existing debt

  • Pay for medical care, prescription drugs and in-home care

  • Cover large or unexpected expenses

  • Make home improvements and repairs

  • Stretch retirement savings

If you are looking for a home loan without a down payment, a USDA loan could very well be your best pick. Ask our professional staff at 1st Point Lending Inc. and we will help you understand whether you actually qualify for a loan like this. Some necessary pre-conditions need to be confirmed in order for you to be eligible.

income Restrictions

The processing of a USDA loan requires potential borrowers to provide proof of income. Every county has its own set of restrictions with respect to eligibility norms. Our officials at 1st Point Lending Inc. can help you determine your specific guidelines.

The prime aim of mobilizing these loans is to help the smaller communities residing in rural belts flourish by making property and land much more affordable.

Place of residence

To qualify for a USDA loan, you must reside in an area that is designated as rural and fulfills USDA requirements. Contact us so we can check the eligibility of your county. Contrary to popular belief there are quite a few areas that actually qualify for zero-down-payment home loans.

Provided you have a proficient team of advisers like the ones at 1st Point Lending Inc., you will find the qualification process very straightforward.

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