Do you know the difference between conventional home financing and FHA loan programs? Before pursuing financing, it’s important to understand the advantages and disadvantages of both conventional and FHA financing.
Are you planning to apply for an FHA home loan? If so, you will want to understand how the newer mortgage insurance cancelation rules may apply to your new mortgage. It’s also important to understand that with an Arizona FHA loan, if you have less than 10 percent down, you will need to pay the mortgage insurance premiums through the entire duration of your loan term.
You may have heard the term “conventional” used in conjunction with home mortgage programs. This mortgage term is used to identify loans that conform to standards set forth by Freddie Mac or Fannie Mae.
For prospective home buyers who are finding it difficult to get approved for FHA, Conventional , VA, Jumbo or other loan programs because their income is difficult to verify or otherwise does not meet these program guidelines, Private Money Lending may be an option. Matching you with a Private Money Lender may pave the way for home ownership where you thought there was no hope.
If you are in better financial position today to enjoy a lower interest rate than you were at the time you purchased your home, then refinancing may be for you. Refinancing can also allow you to lower your monthly mortgage payment or cash out some of the equity in your home to meet other needs.
Buying a house is a monumental life decision, especially if you are a first-time home buyer. Understanding what steps to take prior to launching your house hunt can help ensure you avoid the many costly and time-consuming pitfalls that can befall prospective buyers on the way to first-time home ownership.