If you or someone you know has plans to use a cash gift as their down payment for an FHA home loan, pay close attention. While the cash gift is not only allowed but encouraged by the Federal Housing Administration, there are rules to how the money can change hands and how it is all documented. If the steps are not followed it is very likely that the home loan will be rejected.
An offshoot of the popular FHA home loan is the 203k mortgage. The loan is named after the section of the FHA guidelines where the mortgage is located. While an FHA mortgage was designed to allow people to buy a home in move-in condition, the FHA 203k program has a very different goal. It is aimed at allowing people an opportunity to purchase and either repair or renovate the property before moving in. The uniqueness of the program has made it possible for more people to become homeowners and helped some areas inject new energy into their neighborhoods.
The mortgages offered via the Veterans Affairs home loan program have long been vital to the country’s economic health. Now that home values are on the rise and a bit of stability has returned to the real estate market, it is time for eligible veterans to consider buying a home. Here is a summary of some of the similarities and differences between a VA home loan and a conventional loan.
Lots of people are in love with the idea of building a home, but can’t seem to pull it off for a variety of reasons. Chief among those reasons is the ability to find an available lot in the part of town that has access to quality schools, shopping, and entertaining activities. Most of those spots are occupied by current homeowners or properties that need some major work. However, there is another alternative. The HomeStyle Renovation Loan, a conventional mortgage offered by Fannie Mae, will allow people to purchase a home AND get the money for repairs all with one loan.
A mortgage lender is the primary link for the majority of people searching to buy a home. While some individuals do indeed pay cash for a home, their numbers are quite low. Considering that the average home costs well over $120,000 in America, it is safe to say that this is a serious transaction that should be handled with great care. Here are some major questions any potential home buyer should ask their mortgage lender before signing up for a loan.