Home Loan Guidance Topics

Keep an Eye Out for Special Loan Programs Unique to You

Many different programs are available for a number of unique homebuyer situations. Here are just a few.

First-time homebuyer
The most popular of these is the FHA loan. This loan is designed for first-time homebuyers, particularly those with only a little to make in a down payment. The Federal Housing Administration is a government agency that tries to make it easier for lenders to make loans even to buyers with little down payment. Loan To Value ratios can be as high as 97% - meaning, these FHA loans will allow you to put as little as 3% of the home's value in as a down payment. Many other first-time buyer programs exist.

Veterans of the US Armed Forces
If you are a veteran, the VA loans from the Veteran's Administration can also be valuable. Some mortgage sources specialize in these, others do not. If you fall into this category, you will want to make sure your mortgage source is an expert with VA loans and has done many of them. We've heard many, many complaints from veterans about problems with these loans because the brokers were not as familiar with these as they seemed to advertise.

Special geographic programs
Depending on the area you want to move into, there are often governmental programs that encourage lenders to make loans in areas they want to develop. Often times, the government will even pay for the loan origination costs to help you get a better interest rate. When you comparison-shop, you may want to include a few mortgage sources that reside right in the area. This is one reason that you may want to include in your comparison-shopping a few mortgage brokers who live in your target home area. You would definitely include this as one of your interview questions.

Special church or community membership
Do you or could you belong to a certain credit union with your church, company, union or other organization? Often, savings and loan institutions or credit unions will have special loan deals only for their members. These loans can have low interest rates unavailable elsewhere. We have heard people say that those types of lending institutions are often less likely to try to sneak extra fees into your loan because the loan officers are often fellow members of your organization.

Combined home and rental property
As we mentioned earlier, you may have the capacity and the desire to purchase a multi-family unit. There are often lenders who specialize in making loans to people that will also be collecting rent from a tenant. Those lenders will understand your situation better and may make it easier for you to qualify and get a better interest rate. Conforming loan limits are higher, among other things, for multifamily property.

Other programs
Other characteristics that may put you into a special group where you should seek a particular program include self-employment, condominium purchasers, blemished credit profiles, and others. The key is to explain your situation fully to convey any special uniqueness to your mortgage source and ask if they know of anything that fits your special needs. Don't settle for the first answer that comes your way.

Five General Tips to Save | Equal Home Finance Articles | Consumers Helping Consumers | Equal Home Finance ALERTS! | About the Equal Home Finance Bureau | Contact Us

Copyright © 2001 EQUAL HOME FINANCE BUREAU • Contact Webmaster