FHA & VA Loans

FHA Loans

The Federal Housing Administration, FHA, was established in 1934 to advance homeownership opportunities for all Americans by creating low down payment, long-term programs. FHA assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults, thus encouraging lenders to make loans to borrowers who might not qualify for conventional mortgages. The Federal Housing Administration is a federal agency within the U.S. Department of Housing and Urban Development (HUD).

In general, FHA loans are designed for low- and middle-income borrowers and many first-time buyers. FHA offers a variety of loan programs including fixed rate, graduated payment and adjustable rate mortgages. FHA loan limits are now higher than ever before at $200,160, making FHA loans available to many more people.

FHA offers easier qualifying, low interest rates, and low, flexible down payment standards.

FHA financing features:

• FHA allows for higher income & debt ratios for more qualifying power
• Fixed or adjustable rates available
• Low down payment requirements - as little as 3%
• Permits gifts up to 100% of the down payment including all closing costs
• Has NO income limits
• Non Occupant Co-Borrowers are allowed to help occupant borrowers to qualify
• No cash reserve requirements
• Variety of terms available
• Applies to new purchase and refinance loans

VA Loans

First, and foremost, if you are a Veteran, thank you for your service to our country!

The Department of Veterans Affairs is a federal agency which guarantees loans made to Veterans. The Veterans Administration (VA) does not actually loan money. Like the FHA, they are an insurer of loans. The VA's guaranty on a loan protects the lender against loss in the event the borrower defaults on the mortgage loan. Borrowers are required to pay a funding fee that is collected by the lender to help maintain the insurance.

An eligible Veteran can purchase a home without a down payment! To be eligible for a VA loan, the Veteran (or Reservist) must have served in the Armed Services for a specific period of time. VA loans offer many advantages over conventional mortgages including easier qualification criteria, no monthly mortgage insurance premium and limited closings costs.

For more information or to see if you qualify for a FHA or VA loan, please email info@LangdonMortgage.com or call locally 317.844.2250 or toll-free 317.844.2250!