Government loan programs

FHA loans

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy individuals and families who do not meet the continued tougher requirements for conventional loans. In many cases FHA loans can be more affordable than their conventional counterpart loans.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:

• Only a 3.5 percent down payment is required.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• More flexible underwriting criteria than conventional loans
• FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
• Loans are assumable to qualified buyers.

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Negotiable interest rates.
• Closing costs are comparable and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

USDA Loan

USDA Rural Home Loans have some outstanding benefits over ANY other type of mortgage loan you will find for Ohio.  USDA Loan Benefits include:

• True Zero Down Financing – USDA Rural Home Loans let you keep your cash in your bank account
• Fixer Up Ability – Repairs can often be financed for that Fixer Upper
• Zero To Move In – If properly set up, you wont need to bring any cash to closing. 
• No Monthly MI - On a $200,000 home you could save up to $11,000 in mortgage insurance payments over the next 10 years as compared to FHA
• A large portion of Butler, Warren, Clermont and some of Hamilton County qualifies for USDA Rural Home Loans – Parts of Liberty Township, Monroe, Mason, Batavia, Oxford, Hamilton, Ross  OKAY!
• Generous Qualifying Ratios – Due to low rates, No MI and superior performance of the USDA Rural Home Loan it is much easier to qualify than for Conventional or FHA Mortgage Loans
• Not just for First Time Home Buyers
• Permanent Rate Reductions

To find out how much USDA Rural Home Loan you qualify for today fill out the form below and we will provide you with your personal USDA Rural Home Loan plan.