When you make an offer on a home, pre-approval is essential to make your offer more attractive to the seller. Pre-approval allows you to confidently buy a home within your price range. In a competitive home sales market like Arlington, sellers don't even accept offers from buyers unless they have a pre-approval letter in hand. Conventional loans are ideal for people with a good credit history, stable income and at least 3% of the down payment.
You're likely to pay for mortgage insurance if your down payment is less than 20%. FHA loans can have a down payment of as little as 3.5%, depending on the credit. FHA loans require two mortgage premiums, one paid in advance and the other paid annually with a down payment of less than 10%. Private Mortgage Insurance (PMI) is required until you have at least 20% equity in your home.
USDA loans help people who live in rural areas that qualify for the USDA get a mortgage. Depending on income level, some USDA loans don't require a down payment. Initial mortgage insurance is 1% with an annual fee of 0.35% paid in monthly installments. In some cases, a lender may give you an interest-only mortgage in which you only pay interest for the first 5 or 10 years.
After that period, switch back to a conventional fixed-rate mortgage.If the property in question is a duplex or a multi-family home, the buyer can get a landlord-occupied loan. In this case, buyers can use the rental income from the property to secure the loan with higher loan limits. The property must have signed lease agreements in order to verify payments. They are considered investment properties, so private lenders may demand higher down payments, usually between 25 and 30 percent.
The VA and FHA will also work with buyers on loans occupied by their owners.Farm loans are available for properties with 10 acres or more and have no restrictions for the owner, compared to properties with orchards, farms, vineyards and more.
Red Hawk Realty
issues farm loans for eligible properties with flexible financing options. Contact our team for more information.Vendor financing is subject to licenses and regulations, which is important for real estate agents to understand. Both the buyer and seller pay closing costs in VA, but each party pays different services and fees.Home sellers pay agent fees and transfer taxes, while the buyer pays most other closing costs.In addition to conventional Virginia home loans, conventional no-mortgage insurance and FHA, the agency offers VA and USDA loans, which can also be combined with Virginia housing grants and other forms of assistance. Through Virginia's combined home loan program, first-time homebuyers in Virginia can combine a Virginia home mortgage, a down payment assistance grant, a mortgage credit certificate, and a free homebuyer education course in one package.The Virginia Housing Development Authority (VHDA), also known as Virginia Housing, offers programs for first-time buyers, including loans, grants, education and other forms of assistance. Virginia Housing Plus's second mortgage prevents first-time homebuyers in Virginia from having to take substantial funds out of their pocket for a down payment.
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