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Calculators
Wondering how much your mortgage will be? Use our calculators to perform mortgage-related calculations such as your expected monthly payments.
Government Loans
Government loans are guaranteed loans by one of two federal agencies, allowing lenders to lend money with miniscule risk. However, government doesn't lend the money, they do guarantee repayment to the lender and ensure any potential loss that may incurred if any loan go into default and subsequently foreclosure. There are three types of Government loans. They are:Federal Housing Administration (FHA) loans, Veterans Administration (VA) loans and USDA Loans.
The advantages of financing using FHA loans are that they are easier to qualify for, and allow a borrower to finance more of the loan amount than non-government loans. A FHA loan allows a borrower to finance 96.5% of the loan amount. FHA loans are recommended for those borrowers who are first-time buyers, have low down payment, have a short credit history, or are having trouble qualifying for a Conforming Loan.
The two main advantages of financing using VA loans are that the VA allows borrowers to finance 100% of the loan amount, and that, the VA only requires proof of service status to qualify for the loan. VA loans are offered as both 15 and 30 year fixed rate mortgages and 3/1 & 5/1 Arms. The primary advantages of VA loans are no down payment requirement and their less stringent qualification requirements. VA does require an up front funding fee that's usually financed into the loan but DOES NOT require monthly mortgage insurance. VA allows up to 6% seller concessions to cover the borrower's closing cost and pre-paids to minimize funds needed for closing.
USDA is a loan that's guranteed by the US Department of Agriculture. This loan is still offering 100% financing with no down payment required. This loan is designed for median income families in designated areas of the state to be able to purchase a home with no downpayment and obtain a 30 year fixed interest rate. There is an up front gurantee to fee to USDA that can be financed into the loan and there is NO monthly mortgage insurance. Seller concessions may by used for closing cost & pre-paid items. There are geographic restrictions & household income restrictions on this product, so please contact us for details.