 |
|||
|
Financing -- Overview of Loan Types SECONDARY MORTGAGE MARKETS: private investors and governement agencies that buy and sell real estate mortgage loans. They buy the loans all over the country. Usually offers competitive interest rates. Properties must qualify in addition to the buyer. CONFORMING VS. NON-CONFORMING: conforming loans follow the criteria set by the secondary market, so the buyer, the property, and the type of financing must fit its guidelines. If one of those elements do not match the requirements (i.e. the property is an investment property with minimal money down, the property is in need of major repairs, the buyer's credit score is lower, etc.). ARM: ARM's permit the lender to periodically adjust the rate up or down with the fluctuationis in the cost of money. The rate is traditionally lower than a 15 or 30 year fix. It is a good option for people wanting to purchase a property when they know that they will not be owning the property more than 3-5 years. FHA: FHA loans allow qualified buyers and properties to be purchased with a 3% down payment. There is no secondary financing. PMI insurance is required. It is an assumable loan. There are no pre-payment penalties. VA: VA loans are available to qualified veterans (usually 4 years active duty or 6 years reserve duty is the minimum). It requires a VA certificate of eligibility. It offers veterans the ability to purchase a property with 0% down payment and no secondary financing required. It is an assumable loan with no pre-payment penalties. CONVENTIONAL LOANS: conventional loans are any loan not insured or guaranteed by a government agency. They are usually fully amortized. The different types are 80% conventional, 90% conventional, and 95% conventional. PMI is required with less than a 20% down payment. additional terms to know>>> |
||
|
Home | About Ray A Hill | Contact Ray A Hill | Marketing Tools | Listings |
|||
| Powered by WebFatCat.net | |||
