There
are many factors to consider when applying for a government loan. We
will be by your side every step of the way. Below is some helpful
information to help get you started. To get started immediately click here for our on-line application.
Return to Loan Programs
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The
Federal Housing Administration was started in 1934 as part of the new
deal. The FHA's goals have remained the same through out the years and
they are to contribute to building and preserving healthy neighborhoods
and communities, maintain and expand homeownership, and to stabilize
credit markets in times of economic disruption.
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The
FHA now offers a variety of loan programs to a large population and FHA
mortgages can have fixed or adjustable interest rates. Many find these
home loans attractive because they require very small down payments,
gifts can be used for down payments and closing costs, and because the
FHA regulates the closing costs. These loans also have qualifications
that are easier to meet than traditional mortgages. The FHA does not
require a minimum FICO score to meet qualifications and these programs
will allow home purchase two years after a bankruptcy filing.
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Energy
Efficient Mortgages, EEMs, recognize that reduced utility expenses can
permit a homeowner to pay a higher mortgage to cover the cost of the
energy improvements on top of the approved mortgage. FHA EEMs provide
mortgage insurance for a person to purchase or refinance a principal
residence and incorporate the cost of energy-efficient improvements
into the mortgage. The borrower does not have to qualify for the
additional money and does not make a down payment on it. The mortgage
loan is funded by a lending institution, such as a mortgage company,
bank, or savings and loan association, and the mortgage is insured by
HUD. FHA insures loans. FHA does not provide loans.
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Section
203(k) insurance enables homebuyers and homeowners to finance both, the
purchase (or refinancing) of a house and the cost of its rehabilitation
through a single mortgage - or to finance the rehabilitation of their
existing home. FHA approved lending institutions which include many
banks, savings and loan associations, and mortgage companies can make
loans covered by Section 203(k) insurance.
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Reverse
mortgages are becoming popular in America. Reverse mortgages are a
special type of home loan that lets a home owner convert the equity in
his/her home into cash. They can give older Americans greater financial
security to supplement social security, meet unexpected medical
expenses, make home improvements, and more.
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FHA
has permitted streamline refinances on insured mortgages since the
early 1980's. The "streamline" refers only to the amount of
documentation and underwriting that needs to be performed by the
lender, and does not mean that there are no costs involved in the
transaction. The basic requirements of a streamline refinance are:
- The mortgage to be refinanced must already be FHA insured
- The mortgage to be refinanced should be current (not delinquent).
- The refinance is to result in a lowering of the borrower's monthly principal and interest payments
- No cash may be taken out on mortgages refinanced using the streamline refinance process
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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.
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These
loans are made by a lender, such as a mortgage company, savings and
loan or bank. VA's guaranty on the loan protects the lender against
loss if the payments are not made, and is intended to encourage lenders
to offer veterans loans with more favorable terms. The amount of
guaranty on the loan depends on the loan amount and whether the veteran
used some entitlement previously. With the current maximum guaranty, a
veteran who hasn't previously used the benefit may be able to obtain a
VA loan up to $240,000 depending on the borrower's income level and the
appraised value of the property. The local VA office can provide more
details on guaranty and entitlement amounts.
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Veterans
who served on active duty and were discharged under conditions other
than dishonorable, during World War II and later periods are eligible
for VA loan benefits. World War II (September 16, 1940 to July 25,
1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam
era (August 5, 1964 to May 7, 1975) veterans must have at least 90
days' service. Veterans with service only during peacetime periods and
active duty military personnel must have had more than 180 days' active
service. Veterans of enlisted service which began after September 7,
1980, or officers with service beginning after October 16, 1981, must
in most cases have served at least 2 years. VA regional office
personnel may assist with additional eligibility questions
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The
application process for VA financing is no different from any other
type of loan. In fact, the VA application form is the same as that used
for HUD/FHA and conventional loans. The mortgage lender verifies the
applicant's income and assets, and obtains a credit report to see that
other obligations are being paid on time. If all is well and the
appraised value of the property is enough to cover the loan needed, the
lender, in most instances, can then close the loan under VA's automatic
procedure. Only about 10 percent of VA loan applications have to be
submitted to a VA office for approval before closing.
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You may use VA-guaranteed financing:
- To buy a home.
- To buy a townhouse or condominium unit in a project that has been approved by VA.
- To build a home.
- To repair, alter, or improve a home.
- To simultaneously purchase and improve a home.
- To improve a home through installment of a solar heating and/or cooling system or other energy efficient improvements.
- To refinance an existing home loan.
- To refinance an existing VA loan to reduce the interest rate and add energy efficiency improvements.
- To buy a manufactured (mobile) home and/or lot.
- To buy and improve a lot on which to place a manufactured home which you already own and occupy.
- To refinance a manufactured home loan in order to acquire a lot.
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A
basic funding fee of 2.0 percent must be paid to VA by all but certain
exempt veterans. A down payment of 5 percent or more will reduce the
fee to 1.5 percent and a 10 percent down payment will reduce it to 1.25
percent.
A funding fee of 2.75 percent must be paid by all
eligible Reserve/National Guard individuals. A down payment of 5
percent or more will reduce the fee to 2.25 percent and a 10 percent
down payment will reduce it to 2.0 percent.
The funding fee for
loans to refinance an existing VA home loan with a new VA home loan to
lower the existing interest rate is 0.5 percent.
Veterans who
are using entitlement for a second or subsequent time who do not make a
down payment of at least 5 percent are charged a funding fee of 3
percent.
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360 Mortgage Inc. can help you with your KANSAS CITY FHA and KANSAS
CITY VA home loans. KANSAS CITY FHA home loans can help KANSAS CITY
borrowers obtain a KANSAS CITY mortgage more easily. KANSAS CITY VA
home loans can help KANSAS CITY Veterans secure KANSAS CITY home loans
to purchase their dream home. Contact 360 Mortgage Inc. for help with
your KANSAS CITY FHA and VA home loans.
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