As buyers agents, we can help you with your financing alternatives. We can tell you in a matter of minutes what amount you can qualify for and which loans would best serve your purposes. Or, if you prefer, you can have a bank do this for you. We can "shop" the loan for you, finding you the best interest rates, lowest closing costs, etc. Having your financing in place before you make an offer on a property gives you more negotiating power.

Loans

100% Loans

Why use a 100% loan? No down payment. You may not want to liquidate assets for the down payment on a conventional loan. Or, you may have just begun your career and don't have the down payment. Either way, this lets you purchase a home now and take advantage of the tax breaks for the home owner.

FHA Loans

FHA stands for Federal Housing Administration. These loans are sometimes mistakenly believed to be only for the first time buyer. Not so. Anyone can use FHA but there are some guidelines:

1. Must have clean credit for the past 6 months. Any outstanding collections must be paid off.

2. There are no income limits. There are, however, housing limits.

3. FHA cannot be used to buy an investment property. It must be your primary residence.

The down payment on an FHA loan is 3%. Anyone can pay the closing costs; buyer, seller, a loving relative, or your best friend who just won the lottery. Anyone can pay the down payment for that matter. But it must all be GIFT FUNDS, not a loan which you must pay back.

There is PMI with an FHA loan. This is private mortgage insurance and equals about 1/2% a year. In other words, on a $100,000 home, 1/2% would be $500. Divide that by 12 months and the PMI payment each month would be $41.66 a month which will be added into the payment.

You must also escrow with FHA. This means each month you will pay 30 days worth of taxes and 30 days worth of home insurance. It is included in your payment. When the taxes and insurance come due, the bank automatically takes care of these.