Prior to 2008, banks, mortgage lenders, and mortgage brokers were practically giving money away due to what we all know as the subprime mortgage era. This, eventually, led to a crisis in which there were more foreclosures in America than the country had ever experienced before (these record breaking foreclosures surpassed three million, in fact).
Many people were to blame for this crisis: mortgage brokers, banks, homeowners. In reality, however, too many people chose to procure mortgages that were far beyond their means. (In essence, nobody forced them to sign that dotted line.) I digress, however. If you are are a home buyer seeking home loans, there are a few options to consider.
For many first time home buyers, or those who simply do not have a lot of money to put forth on a down payment, there are programs and loans that mortgage brokers can explain to you. An FHA loan, for example, might be a good option. Mortgage brokers Vancouver WA or mortgage lenders Vancouver WA can explain that an FHA loan can be procured with as little as 3.5 percent down and has lower than average closing costs. However, this government funded loan (funded by the Federal Housing Administration) does require a mortgage insurance premium (commonly known as MIP), which adds to your monthly mortgage payment.
Another option that qualified mortgage brokers can discuss with you are VA loans. If you are currently serving in the military, are a veteran, or are an eligible surviving spouse of a service person, you may qualify for a VA loan, which typically has more favorable characteristics than other traditional home loans.
The government also has other programs to help you obtain a mortgage. If you are considering purchasing a fixer upper in a community that is in need of redevelopment, the FHA has a loan called the 203(k) Rehab Program. This type of loan provides funds to cover the purchase of the home, as well as the costs of repairs and remodeling expenses.
As with all things (particularly those that are financial related), there are many caveats and exceptions that must be adhered to. The complicated aspects of a home loan can be overwhelming, but with the help of experienced mortgage brokers in tow, you could be in your new home in no time! More like this blog: mortgagevancouverwa.com