VA Home Loans
VA home mortgage loans guaranteed by the Veterans Administration provided to veterans, active service members and eligible surviving spouses. Aside from the veteran’s certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan.
Main Advantages of VA:
- No private mortgage insurance premium.
- No down payment is required (as long as the sale price does not exceed the appraisal value).
- Closing cost may be paid by the seller.
- VA funding fees are rolled into the loan amount.
- VA benefit may be used multiple times.
- VA loans can be refinanced up to 100% of the home value.
USDA mortgage loan, also known as, Rural Housing Loan, is guaranteed by United States Department of Agriculture. Home buyers must select a home as their primary residence in a qualified USDA area and must meet USDA income eligibility requirements. Your Loan Officer can let you know which areas qualify!
Main Advantages of USDA:
- 100% financed! You may still have the option to place a down payment.
- USDA home loans do not have a specific loan size limitation.
- You may refinance via USDA Streamline Pilot Refinance Program that requires no appraisal.
FHA offers a variety of loan programs with fixed or adjustable interest rates. These loans are appealing mainly because they require small down payments. These loans have more lenient qualifications than traditional mortgages.
Main Advantages of FHA:
- This is a great option for first-time home buyers
- Required down payment is 3.50% of the purchase price – you have the option to apply more.
- Cash gifts can be used for down payments and closing costs.
- Sellers Concession is up to 6% of the purchase price.
- Mortgage Insurance (MI) is required to secure the loan.
- FHA mortgage loans can be refinanced up to 97.75% of the home’s value.
Conventional loans are not insured or guaranteed by the federal government. They are a good choice for borrowers with good credit and funds for larger down payments ranging from 5%-20% of the home’s purchase price.
Main Advantages of Conventional:
- These loans may be used from primary, secondary, vacation or investment properties.
- There are no requirements for upfront MI premiums or funding fees.
- Borrower has the right to cancel Private Mortgage Insurance (PMI) once their property reaches as least 78% loan-to-value ratio.
- If your home property declined and you are not behind on your mortgage payments, you may refinance through Home Affordable Refinance Program (HARP) up to 125% loan-to-value ratio.
Mortgage Credit Certificate (MCC)
Residents of North Carolina may take advantage on our approval with North Carolina Finance Agency to get a Mortgage Credit Certificate (MCC). Applicants that qualify can claim 30% of your mortgage interest, up to $2000 per year, as a credit on your federal tax with-holdings and still claim 70% interest as a deduction.
Advantages of MCC:
May be used immediately by filing a revised W-4 with your employer(s) to increase your take home pay, allowing more of your monthly earnings to be applied to your mortgage payment. It’s relatable to taking an advance on your mortgage interest deduction.