Government backed Loans and Today’s Marketplace

Oct
9
Government backed Loans and Today’s Marketplace
Posted by Josh Schlesselman under For Buyers, For Sellers, For Realty Professionals, Regional News, Virginia Beach

In today’s market, the most desireable and obtainable loans are the government backed loans. In total contrast to how the market was 4 or 5 years ago, where VA loans were frowned upon, they have become the norm.
The three most common loan products being used in our marketplace are the VA, FHA and the VHDA loans. The VA loan deals with military persons whether currently active or not, and offers 100% financing and very competitive interest rates with no mortgage insurance. FHA loans are open to everyone who qualifies and offers 3% down payment with competitive interest rates but does require mortgage insurance. Lastly, the VHDA loan program is targeted to first time home buyers, but offers a staggering 102% financing but once again, requires mortgage insurance.
Conventional products have just become not as applicable as of late because of the amount needed for downpayment and the higher mortgage insurance premiums. They are still being used for certain applications, but just becoming more and more out of reach.
If you are active or prior military, your best bet is to use your VA loan, one major misconception about it is that you CAN use it more than once. Actually, you can use it as many times as you want as long as you don’t go over 417,000K.
If you don’t have a military background but have purchased before and have some money to put on a downpayment, then your best bet is to go FHA. You will have the MIP to deal with, but for everything else that’s available to you, this will probably work the best.
If your a first time home buyer, and don’t have much if any money, they are still offering the VHDA first time home buyer program, which is great. It will give you a competitive 30yr. fixed rate with a competitive interest rate and you will need little to no money.
For more information on any of these topics, visit my website at www.JoshSellsVirginia.com