FHA Raises Loan Limits In New Castle County to $420,000! More Home Buyers Now Qualify For Best Rate FHA Financing! Refinance FHA up to 95% LTV   Purchase FHA up to 97.75% LTV  Get Pre-Approved Free  For Best Rate FHA Home Loan Financing Today!

Government Backed FHA Best Rate Home loans

An FHA loan is insured by the  Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, (Except Investment purchases), FHA loan programs are designed to help creditworthy lower-income and moderate-income families who do not meet requirements for conventional loans realise the American Dream of home ownership.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally the same as conventional loans and in some cases lower, while down payment requirements and best interest rates are lower than for conventional loans.

Some of the other benefits of FHA Home Loan Financing:

• Only a 2.25 percent down payment is minimum required depending on credit score.
• Closing costs can be provided through Down Payment Assistance programs like AmeriDream, and require very little in the way of funds from the borrower at closing. 
• Lower monthly mortgage insurance premiums than conventional loans that are TAX Deductable (consult your accountant) just like mortgage interest, and under certain conditions, automatic cancelation of the premium when the equity reaches 22% in the home.
• More flexible underwriting criteria than conventional loans. FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
• Best Rate FHA Home Loans are assumable to qualified buyers.
• FHA with up to 97.75% financing with only 2.25% down payment is the perfect best rate home loan when buying or refinancing your Home!

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay your home loan. In most cases, no down payment is required on a VA guaranteed loan and it is the only loan where the borrower can literally borrow the funds need for closing cost. 

Other benefits of a VA loan include:

• No Down Payment
• Closing costs are comparable and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold, new buyer must qualify.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

Wilmington Mortgage Services, Inc. is a direct endorsement lender for both FHA and VA home loans.

If you have any questions on Government best rate FHA or VA financing please contact Me.