Soooo. . . you're thinking of buying? Where should you start?
So what are the different loan programs available? Here's just a sampling:
There are programs through Frederick City and County that will give you money towards a home purchase. These programs are available as frederick county has funding available and can range anywhere from $5000 up to as much as $7500, depending on what's available at this particular time and if you qualify. Be sure and ask Jeri about these programs.
Conventional options are available for as little as 3% down. These loans also present several ways of handling mortgage insurance and loans with no Mortgage Insurance options. See how these can benefit you. If you have the ability to put 20% down- Conventional loans are the best option for you. Frederick County is a high cost area and our 2017 conforming loan limits are $424,100 and a high balance of $625,500 for a 1 unit property and $800,775 for a 2 unit property. Your 20% down payment means the best rates for 30 year amortization with no mortgage insurance.
Do you lack the funds for a large down payment? Less than perfect credit? Not much credit or need to build credit? FHA loans are the answer for you. With just 3.5% down you can own your own home. Manual underwrites are possible with a FICO of 620 or higher. Buyers are eligible for up to 6% closing cost help from the seller – this means your investment is minimal and your gain is great.
Find a good home, but want to make it great? Want to update the kitchen or the bathroom? Then the FHA 203k renovation loan might be just what you need. We have 2 options to suit your renovation needs. If your repairs and updates are less than $35,000 then the Streamline option is just what you need. If your renovation work entails more; than the standard 203k renovation loan is in order. This allows you to buy a house with potential and make it your own.
As a Veteran you are eligible for 100% financing at great market rates for your service to our country. This is one loan at 100% with no mortgage insurance and if you are disabled from a service related injury, you may be eligible to waive the funding fee. Manual underwrites are available with a fico score of 620 or higher. With the possibility of seller paid closing costs of +4%, you can get into your new home with little to no money.
Did you know that 100% financing for properties outside major city limits is still available through this program backed by the U.S. Department of Agriculture? If your family of 4 makes less than $101,000, or your family of 5-8 makes no more than $133,300, you could be eligible for this little known loan program. If you have child care costs subtract that amount off of your income, which means you could actually earn more than the limits. Income limits are county dependent. It is one loan at 100% with no mortgage insurance option- this program can’t be beat.
With reverse mortgage programs there are no employment, income, assets or credit verification required. If you are age 62 or over, a purchase money reverse mortgage may be a great option to provide cash flow solutions for your financial challenges. A reverse mortgage allows you to pull money out of your primary residence and you never have to make a payment on the balance for as long as you live!