FHA/VA Lending


FHA Loans

An FHA loan is a loan insured by the Federal Housing Administration (FHA). Most of the FHA programs are designed for first time homebuyers and low to moderate-income borrowers. FHA loans have lower down payment requirements and are easier to qualify for than conventional loans. FHA loans cannot exceed the statutory limit, which varies according to the county you live in.

There are many good reasons to obtain an FHA loan including:
•Your complete down payment and closing costs can come from a gift (family member or gift foundation).
•2 1/4 percent minimum down payment with the buyer having a minimum of 3 percent committed in the transaction (can be gifted).
•Separate approval from PMI companies not required.
•Minimal assets to close (3 percent).
•Non-occupying co-borrowers are o.k. (must be family members).
•Up to 6 percent sales concessions permitted that can cover discount points, prepaids, escrows and closing costs.
•More liberal qualifying ratios (31%/43%) that can be exceeded with compensating factors (i.e. larger down payment, reserves, excellent credit, etc.).
•Reserves not required on one or two family houses.
•FHA is more lenient on negative credit.
•Can provide non-resident aliens with affordable financing.
•High loan-to-value financing on FHA approved condominiums.
•High loan-to-value financing on multi-family units (up to four units).
•FHA counts 85 percent rental income on owner occupied multi-family units.
•All FHA loans must be full income documentation and owner occupied.
•Residential Home Funding Corp. is a direct endorsed FHA lender, which allows in house origination, processing, underwriting and closings.
•Rates are very competitive in all credit levels.



VA Loans

A VA loan is a home loan guaranteed by the U.S. Veterans Administration. VA-guaranteed loan is available to eligible veterans and unmarried surviving spouses who can show entitlement through a Certificate of Eligibility. Eligible veterans may be able to purchase a home with no down payment and no cash reserve. The VA establishes the maximum loan amounts and eligibility requirements.

The more you know about our home loan program, the more you will realize how little "red tape" there really is in getting a VA loan. These loans are often made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing, as more and more lenders are now, a buyer's loan can be processed and closed by the lender without waiting for VA's approval of the credit application.

Additionally, if the lender is approved under VA's Lender Appraisal Processing Program (LAPP), the lender may review the appraisal completed by a VA-assigned appraiser and close the loan on the basis of that review. The LAPP process can further speed the time to loan closing.