The most common type of home loan is a conventional, conforming loan. These mortgage loans are underwritten according to the guidelines set by Fannie Mae and Freddie Mac. Since they follow a uniform set of underwriting guidelines the loans are able to be sold on the secondary market. The most common reason for this is because a lender may need to sell the loan to an investor in order to free up capital in order to loan more money to other borrowers. Also, conventional loans are not guaranteed by any government agency. FHA, VA and USDA home loans are not considered conventional mortgages.

Since the conforming loans are able to be sold on the secondary market, typically these loans will offer the best interest rates and lowest costs for financing a home.

Several of the advantages of Conventional Loans include:

A large variety of loan terms

10 year – 30 year options

Low interest rate options

Low down payment options

As little as 3% down payment

Less than 20% down payments require Private Mortgage Insurance (PMI)

A variety of ways to pay for PMI with less than 20% down

Monthly

One time upfront premium

Lender Paid option

Split premium

Adjustable rate mortgages are available.

Rates are often fixed for 3-10 years

Since conventional home loans are not guaranteed or insured by the government, some guidelines, such as the debt-to-income ratios and asset requirements, can be more strict than FHA and VA loans.

The Federal Housing Administration (FHA) has developed a set of guidelines for lenders to follow in order to have their loans insured. Very rarely does FHA loan funds to borrowers. Their primary role is as an insurer for the lenders. FHA guidelines do allow for easier access to home loans for low and moderate income households.

Advantages of FHA

-Low Down Payment, or 3.5%, this can include earnest money, tax credit and gift money.

-You can have a higher Debt to Income Ratio

-Typically better rates for lower credit score

-Can go down to a 620 Credit Score

-Loan can be assumable, so when you want to sell your homes down the road, this can be a selling tool.

-Mortgage Insurance can be tax deductible

-Can have Seller Contributions

Assurance Mortgage  offers Construction to Permanent loans for new modular homes. Our One Time Close program provides construction financing, lot purchase and Permanent loan, all wrapped up in one loan.

Advantages:

-Only one closing prior to the start of construction

-No payments due from borrower during construction

-No re-qualifcation of borrower once construction is complete

-No credit document or appraisal expiration once the loan closes

-Financing up to 96.5%

The USDA Home Loan program is a very popular program. To check a specific address, please visit the USDA website to know for certain.

Advantages of the USDA program include:

• No Down Payment requirement
• Low interest rates
• Competitive monthly payments
• Very low monthly guarantee fee
• Closing cost maybe finaced on some transaction
• Reserves not required
• Property must be located in an elgible rural area
• Primarily for low to moderate income borrowers
• No Limitation on Seller Contributions
• Nontraditional credit may substitute for lack of traditional credit history
• Maximum base loan amount up to 100% of the appraised value

Visit the USDA website for maximum income requirements

If you have questions about the property qualifying or you qualifying, please contact us today and we would be happy to assist you with any questions you have.

• No down payment requirement
• No monthly MIP or guarantee fee
• Great interest rates
• VA loans are assumable by other VA eligible borrowers
• 100% Loan to Value on a Purchase
• Seller Contributions up to 4%

The VA Home Loan is only available to veterans and current service members. The VA program allows for home financing with zero down payment requirements. Also, since there is no monthly MIP or monthly guarantee fee, VA mortgages often have the lowest monthly payments available.

Unlike other government sponsored programs, there is no income restrictions or maximum loan amount restrictions. The maximum loan amount is the same as the conventional conforming home loans for Nebraska, $417,000.

It is important to plan ahead when wanting to utilize your VA eligibility. The first step is to make sure your eligibility is available. Contact one of our licensed mortgage professionals and they will be glad to walk you through the process and obtain all the required documentation.

The typical VA fee is 2%.