Home Loans – Which is right for you?
At Security America, we strive to provide the most comprehensive package of programs to serve our clients which is why we also offer a full range of other home mortgage products that’s not VA specific. Conventional Home Loans, FHA-backed Home Loans, USDA-based Home Loans, and Non-conforming loans are all options we also provide to ensure that our clients are able to secure the home they want, how they want.
USDA Home Loans are backed by the US Department of Agriculture. Since USDA Loans are insured by the government and are for the purpose of improving home ownership in rural areas no down payment is required. USDA Rural Development loans are a good for most borrowers looking to purchase a home outside of major metropolitan areas.
Non Conforming Loan
A non-conforming mortgage is a term in the United States for a residential mortgage that does not conform to the loan purchasing guidelines set by the Federal National Mortgage Association /Federal Home Loan Mortgage Corporation (Fannie Mae and Freddie Mac). Mortgages which are non-conforming because they have a dollar amount over the purchasing limit set by FNMA/FHLMC are often called “jumbo” mortgages. Mortgages which are non-conforming because they do not meet FNMA/FHLMC underwriting guidelines (such as credit quality or loan-to-value ratio) are often called “subprime” mortgages.
Conventional loans are the most common of all loans. These loans are typically sold to Fannie Mae or Freddie Mac. Conventional loans do not come with a government guarantee and require a down payment. For down payments that are less than 20% of the purchase price, mortgage insurance is required. Conventional loans can be used to purchase a primary residence, second home, or investment property.
FHA Loans are insured by the Federal Housing Administration. Since FHA Loans are insured by the government, a down payment of only 3.5% is required. FHA loans are a popular loan option for first time home buyers who have not have the savings for a 20% down payment.
A jumbo mortgage is a home loan of which value exceeds conventional home loan limits which are set by Fannie Mae and Freddie Mac.
Typically, jumbo mortgages are used to finance the purchase of luxury, high-end properties, homes or condos. The jumbo mortgage, conforming limit in “high-cost” areas is currently $625,500. Jumbo mortgages also subject lenders to significantly higher risk due to the fact that if a jumbo mortgage loan defaults it would be harder to sell a luxury residence quickly for full price.
VA Home Loans
VA loans are home loans made available to military veterans, reservists, and active duty members for the purchase of a primary residence. The Veterans Administration does not lend money for VA loans; instead it guarantees the top twenty five percent of the loans made by private lenders, such as Security America Mortgage, to those who qualify.
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