FINANCING



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Financing

Much like the Real Estate market financing options are always changing including the necessary qualifications to secure a loan, interest rates/terms and loan programs. Below are the most common types of financing that we see in our area. The financing calculator is to assist you with a basic idea of proposed monthly mortgage however please refer to a Mortgage Broker or Banker for up to date interest rates and programs available that best fit your needs. We at Class Harlan have many Mortgage Brokers and direct lenders that we would highly recommend so please ask us or refer to the Concierge list for names and numbers.

Types of financing

CONVENTIONAL

One of the more common types of financing for the purchase of real property. There are different types of conventional financing including Conventional insured mortgage and Conventional uninsured mortgages. The Uninsured mortgages are those that are typically at or below an 80% Loan To Value(LTV) and insured loans are over 80% LTV.. Conventional loans are usually offer better interest rates especially if an Uninsured loan with lower LTV. Keep in mind the lower the loan to value ratio and the better a borrowers credit usually means the better the interest rate could be.

FHA

FHA (Fair Housing Administration) is an agency operating under the governments department of HUD(Housing of Urban Development). FHA loans are designed to offer borrowers home loans with less money down and higher LTV(97.5%) than Conventional loans and typically more liberal financial qualifying factors for borrowers. FHA loans are government backed loans however the FHA do not lend the money for the loans. The loans are provided by approved FHA institutions. There are two types of FHA loans the most common FHA 203b and than the FHA 203k(offering money for improvements).

VA

VA(Veterans Administration) AKA DVA (Department of Veterans Affairs) established in 1944 to help US military veterans to purchase real property with little or no money down(high LTV) and competitive interest rates.