If you are like most people, you probably have questions about financing your Tampa Bay area home. If you have a particular question in mind, please contact me, and I’ll be happy to address your issues directly. You’re also free to use my handy mortgage calculator to calculate how much you can expect your mortgage to be. For now, though, let’s discuss a few of the more popular home financing programs that are available today.
Popular Mortgage Types
FHA Loans – Short for the Federal Housing Administration, FHA loans still remain popular favorites with potential homeowners. What’s appealing about this type of loan is the low down payment required, which is 3.5 percent of the purchase price of the property. Plus, this money can come from a family member, employer or charitable organization as a gift – something that other loan programs won’t allow. In addition, this program permits the seller to pay up to 6% of the purchase price to be used towards the buyer’s closing costs. This allows the buyer to come to the closing with minimal out-of-pocket expenses. Looking to rehab your purchase? No, problem. FHA (203k) will assist you in financing the repairs. FHA loans also offer competitive interest rates from lenders.
VA Loans – Veteran Administration loans are available to active-duty veterans who served in peacetime and/or wartime since WWII and were honorably discharged. VA loans require neither a down payment nor the payment of PMI insurance, and like FHA loans they offer competitive interest rates.
Fannie Mae / Freddy Mac – Fannie Mae and Freddie Mac aren’t owned by the government. They are in fact publicly traded corporations. That means that after borrowers have completed the closing process on their mortgage loans, Fannie Mae and Freddie Mac buy those mortgages from their approved lenders. Closing costs generally range between 2% to 6% of the property value as with other types of loans, and the down payment is usually between 3% and 20% of the total cost of the home. Essentially this price is determined by factors such as your credit history, income, the cost of the home, etc. If the down payment is less than 20% of the purchase price, then PMI insurance is required.
Again, if there is a particular financing or mortgage question you have, just contact me. As an experienced real estate agent and mortgage specialist, I would love the opportunity to help you explore all of your purchasing options today.