In a word, an FHA 203k is a solution. It is the solution to people who wish to buy a fixer-upper in a great area but don’t have the money to do the repairs. Homes that have been neglected or abandoned by the previous owner often need extensive repairs. FHA 203k loans allow buyers to purchase these homes and immediately make renovations.
A generation ago people would save money for years, sometimes as long as a decade, in order to have a down payment for a home. It was quite common for the husband to work and the wife to stay at home to raise the children and take care of the house. Many families only had one vehicle. However, times have changed. Dual income families with at least two cars are the norm. Much higher prices on everything from gasoline to homes has made it tougher to live comfortably. Thankfully, the USDA home loan program offers potential buyers a way to buy a home without a down payment.
Since the VA mortgage program offers such a great method for buying a home, it is important for qualifying veterans to understand the basic income rules. The program has experienced a very low rate of foreclosures throughout the history of the program due to their strict enforcement of the income guidelines. Get a handle on how the rules work and you will be better prepared for acquiring a home loan.
Based on the recent news reports of the improved housing market it would seem that the best, and only, choice for a loan would be a 30 year fixed term. For the majority of home buyers, that is a good idea. However, for a few select situations it can make sense to pick an adjustable rate loan, especially if that loan is well above the $417,000 level for conforming loans.
The mortgage problems of the last 6 years have left a lot of people holding a mortgage on a home with a significantly decreased value (although improving). Some people have even wondered if they should stay in the home. In order to help these homeowners recover from the down turn Fannie Mae introduced the DU Refi Plus program. This loan resource can help homeowners get a better rate on their current loan even if their current mortgage balance is higher than the home’s appraised value.