Mortgage Programs How Can A Borrower Know What's Best for Them?
This home loan guide explains everything from closing costs to amortization. That way a borrower can truly know which option is best for them. By only being armed with information about mortgage programs a borrower can miss out on opportunities that may have been right in arms reach but neglected due to qualifications. By understanding how mortgage rates fluctuate, closing costs are determined and amortization is calculated, a homeowner can make the best financial planning possible.
Yes, some mortgage programs have lower closing costs and some have no closing costs. Many times when a lender says there are no closing costs it is because the costs are already built into the loan. There are very few times you actually receive a no cost home loan because this is where the lender, broker or even the bank makes their money.
The Government mortgage programs 2010 are the extensions and improvised versions of the existing mortgage help plans. These help the home owners to pay their monthly loans on time. The government intends to draw cash from the $50 billion designated to real estate in the Troubled Asset Relief Program and not from the new taxpayer cash in order to finance these programs.
Mortgage programs offered by different departments of the government help borrowers. There are two main departments helping homeowners and home buyers, the VA and the FHA. Although offered by the government you still must receive these loans through a lender. The lender must also be approved by the government to process these types of mortgages.
FHA loans are highly recommended by most loan counselors. FHA loan or the Federal Housing Administration loan has been around since 1934 This is ideal for first time home buyers because FHA loans require low down payment, closing cost, and your credit score doesn't have to be too high. The FHA also offers Reverse Mortgage programs for senior citizens with low loan balance, converting a potion of their equity to cash.
SBA financing, like all sectors in the industry, have seen a difficult year. No one did or could have predicted what actually happened. The Stimulus Package administered by the government, a welcomed surprise by most in the business, has for the most part been a relative success. Some would say that it likely saved the program from the brink. It has kept SBA Business Loans viable (compared to other commercial mortgage programs that are now dead and gone) as well as motivated borrowers to use the program due to the reduced SBA financing fees.
The states facing the highest foreclosure rates and unemployment are eligible to receive help to provide temporary assistance to qualified homeowners. In an effort to combat the number of foreclosures, the State of California has come up with mortgage reduction California, a 2010 program that works in conjunction with federal programs for mortgage assistance. The California Assist Loan program will actually provide potential buyers with up to $10,000 in down payment. The loan is interest-free and is set up as a second mortgage on the home with no monthly payments. Repayment of the loan comes due when the house is sold. The Homeowner Assistance for Moderate Income Loan Program offers up to $5000 towards their down payment or closing costs, at a standard 5% interest rate. However, borrowers have to fulfill certain requirements to qualify for these programs.