VA Home Loan Program Or FHA Home Loan Program – Which is the Best For You?
By Al Hardy

The United States government provides many benefits to the members that are now serving or have serve in the past in the US military. Active and former members of the United States military can take advantages of benefits ranging from education incentives to compensation for disability occurred while in the military to even life insurance programs. One of the most used and most important is the Veteran Home Loan Program that provides assistance in financing a home loan.

There are currently over 23 millions living veterans and just little less than 10% of these veterans have taking advantage of this great benefit. But there is also another government backed home mortgage loan that veterans may want to consider also. This government backed loan is the FHA Home Loan Program.

So if you are an active member of the military, a veteran, or even a surviving or current spouse of a veteran you may want to compare the advantages and disadvantages of both the VA Home Loan Program and the FHA Home Loan Program.

You need to be fully informed before you buy a home because it is a huge decision and making the wrong decision can cost you thousands of dollars in the future.

VA Home Loan Program VS FHA Home Loan Program

VA home mortgage loans are similar to many conventional home mortgage loans but they do have many great benefits that are not found in conventional loans such as: you do not need a down payment, your credit scores can be lower than what is required for conventional loans, and you can “rolled” the closing and loan fees back into the mortgage thus making it a 100% financing loan.

The FHA Home Mortgage Loan Program is the most popular of mortgage loan programs for non-veterans and is growing in popularity because of the tight mortgage market today.

They have some of the same advantages of the VA home mortgage loans such as: they are easier to refinance, more lenient on the credit scores to qualify, and certainly lower down payment than conventional loans. The FHA home mortgage loan down payment is currently 3.5 of the purchase price of the home.

VA Home Mortgage Loan Eligibility Requirements

A veteran will have to get a Certificate of Eligibility that is issued to by the military to qualified veterans. The Certificate of Eligibility will also include the entitlement amount, which is the portion of the mortgage loan that the VA will guarantee. You can get the Certificate of Eligibility from the VA or you can have your mortgage lender get it for you on the Internet.

One big difference from a VA mortgage loan and a FHA mortgage loan is almost anyone can get a FHA mortgage loan, only people that are or have been in the military can be a VA mortgage loan.

There are no income limits for FHA loans, but there are limits on how much a person can borrow and it varies from each county in the country. You can find out from your mortgage lender what the limit is in your area.

VA home mortgage loans do have limits on how much you can borrow but the limits can currently go up to $729,000 in some parts of the country.

Another difference from FHA loans and VA loans is VA does not require a mortgage insurance premium called a PMI. FHA loans do require mortgage insurance (MIP). By getting a VA home mortgage loan you will save this expense which can be quite costly over the years.

VA home loan makes sense if you are a qualifying member or veteran of the military and they will allow you to take advantage of today’s very low interest rate plus you can buy a home with 100% financing.

If you don’t want to tackle the slight hassle of dealing with the VA or you do not have available VA entitlement then a FHA home loan will make the most sense.

Whether you choose the Veteran Home Loan Program or the FHA Home Loan Program you will need to work with an approved mortgage lender who will help you through the mortgage and closing process.

Owning a home is still the American dream and the government has two great programs to help you to achieve that dream, so get more information on the Veteran Home Loan Program and the FHA Home Loan Program and make that American dream happen for you!

You can get more information by clicking FHA Home Loan Program where you get much more information on FHA loans. You can also get more information here about VA Home Loan Program!

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I have terrible credit but have been pre-approved for FHA at 6% interest fixed for 30 years.
I’m wondering if this is the way to go or if there are better ways to buy a home.
I’m a single mom, live in Iowa,have very little for down payment, good rent and work history, and signs that I’ve been working to improve my credit rating.

There are really very few options at this point in financing a home. Most lenders that thrived during the real esate boom of this decade have gone bankrupt, most of the remaining lenders that have survived are so severely weakened they have limited mortgages to those that have near perfect credit and at least 10% down. If I had that FHA loan: 6% fixed with small down, I’d run with it. You’ll probably need to pay a PMI.

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For example, we are buiding a home for $300,000. We need a loan for $200,000 and our land is worth about $30,000. Do we receive "credit" for a clear lien – making the loan amount actually $170,000?

-owning the lot, paid for is like having 30,000 in a savings account–it is an asset you own..if you need 200 K for a mortgage, then you must be able to qualify for a mtg of that amt.–owning the land does not reduce the amt needed to build the house– remember, the most important thing is to be able to qualify for a mtg of $ 200 K by having good credit, other assets, like savings or stocks or bonds and are you building the home yourself-will it be worth 100K more than your cost to build it?? that will be help-full– since it will give you 100 K equity in the home and make a 200 K mtg easier to obtain if you have 100K equity in the home- talk to a mtg broker or a savings & loan in your area to get some answers !! good luck to you..

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Every field has different terminologies for certain concepts and principles, and the home mortgage industry is no different. Looking at home mortgage rates can easily confuse the beginner to home buying. But, it doesn’t have to stop you from getting the best deal. As you read every word of this article, you will cut through the confusion.

Most people when hearing about mortgages, home mortgage rates, and the different terminology, frequently get confused. The truth is there is no need to get confused on the matter.

With research, it is possible to uncover the truth about the mortgage lenders packages on offer. This is important, as we can often neglect to see the important parts of the mortgage. And considering that the home mortgage you take out likely will last more than a decade.

The biggest point to realize about home mortgage rates is the actual rate. The home mortgage rate is essential because it is generally a small number. We are talking about only 3 digits. When you apply this to your home mortgage loan, you can see how hundreds of thousands of dollars any difference will be a big difference!

Ultimately you want to get the lowest rate. However, the lowest rate does not mean that you will get the best mortgage. The truth is that lenders have hidden terms and conditions, extra fees, and these if you don’t know about could make the best mortgage to be the worst. This is why the research factor becomes so important.

A mortgage is more complicated than a loan, even a home loan. You are liable for more things. And all the paperwork for a mortgage is usually on file at the local courthouse. Be sure you know what you are getting a home mortgage or a home loan. Often they will carry different rates.

Something to keep in mind is that home mortgage rates change, and they change very often. Home mortgage lenders do give you the option to ‘lock in’ a certain interest rate while you are getting approved for a mortgage, which can take weeks. The rates might not be so good then.

Another point you will find with home mortgages is that of a choice between fixed rate mortgage packages and adjustable rate mortgage packages or ARM for short. Your choice will come down to your own expectations of what will happen with interest rates, and also your own needs.

A fixed rate mortgage will be a set home mortgage rate, which stays the same, throughout the term of the mortgage. The alternative ARM, and it has advantages and disadvantages. Often the payments for the first year or so are small, and then explode according to the current home mortgage rates and the stock market.

Koz Huseyin
http://www.articlesbase.com/mortgage-articles/home-mortgage-rates-without-the-confusion-580029.html

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For instance, you are quite tired of renting apartment units. It is been a long time since you have been renting (probably when you have started your first work several years ago) and you estimated that you have already spent an amount sufficient to purchase a modest and permanent home. At this point in time, you realized that it is now the moment to shop for a home that you want to stay in. However, you are hindered by lack of financial funds that you can use on financing the purchase of your new home. There is no chance that a real estate agent will provide you the necessary documentations saying that you are now the new owner if you do not have enough funds.

Will you still go back to being a tenant until you retire from your present work?

What if there is an alternative that you can resort to in this case? Are you willing to give it a try or you will just turn your back on this opportunity of owning a new home without the need of paying the full value immediately?

Yes, there is still a way! And it is through securing a home mortgage loan.

Home mortgage loans are popular financing schemes in purchasing a new home. Arranging mortgage loans are seen as the standard method of buying residential properties without the need of paying the full value immediately. Under typical home mortgage loans conditions, your mortgage lender will pay the owner or developer of the home of your choice, and you will make monthly repayments of the amount your lender spent on purchasing the home from the owner or developer. The term of the mortgage loan is dependent on what you will agree with the lender.

The interest rates applicable on a home mortgage loan may vary according to the loan term and the principal amount. There are two types of interest rates applied on home mortgage loans. These are the following:

1) Fixed rate mortgage (FRM) as the name suggests, the interest rate is fixed, hence the monthly repayment for the term of the home mortgage loan. In the United States, the home mortgage loan term where the FRM is applicable is typically for 10, 15, 20, or 30 years. The only increase that you can expect in your monthly repayments is the result of increase on property taxes and insurance rates. But the interest rate and the basic monthly repayment amounts will be consistent throughout the term of the home mortgage loan.

2) Adjustable rate mortgage (ARM) the interest period is initially fixed for a certain period of time. After which, it will now be subjected on changes (either adjust up or down) based on various market indexes. In the United States, the most common indices used in determining ARM are the Prime Rate and Treasure Index. Home mortgage loans having this type of interest rate transfers the risk from the mortgage lender to the borrower.

The mortgage lender determines whether an applicant is eligible for the home mortgage loan he selected based on different factors, but the most popular is the applicant’s credit scores. The higher your credit score, the more creditworthy you are to your lender, which could lead to cost-efficient home mortgage loans.

With home mortgage loans, you will be able to realize your ultimate dream of becoming a new homeowner and not just a tenant forever.

Michael Contaro
http://www.articlesbase.com/mortgage-articles/what-you-need-to-know-about-a-home-mortgage-loan-70446.html

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Hi All

what is the best rate for the home mortgage loan? and I am putting almost 50% down payment.
One broker offered me loan at , 5% at 0 Point for 30Yr fixed. Do you think I should contact more brokers? Do you think I can get better rate if I contact more broker?

Mihir

15 yr is 4.45%

30 year is about 5%

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does that obligate me to anything, or will it just tell me how much I am aloud to borrow?

A pre-qualification is nothing more than YOU providing the circumstances of your income, debts, etc. so that another person can give you a good idea of what amount you may qualify for.

Once you actually apply somewhere, then credit checks will be run and verification of the information provided earlier will be asked for.

As I have said before, I could get a ham and cheese sandwich prequalified to buy a house within ten minutes.

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I know that if a person already has an FHA loan, they may refinance using the FHA Streamline process. If a person currently has a conventional mortgage loan, can they refinance using FHA? If posible, can you please provide me the resource where I can read this information. Only if that’s not to much trouble. I looked on the HUD website but locating that particular information was far to cumbersome. Thank you

yes you can but the correct answer is…you can financing a FHA mortgage, but ONLY up to 95% loan to value for refi’s cashouts, and it depends on the COUNTY limits…not the state limits. They have county limits….not state limits.

Streamline FHA refinance is for those who dont plan on taking money out, but those who just want a lower rate.

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Me and my fiance bought a home, now his family is residing with us temporarily. It has been a year, the loan is in both our names. How can I get out of it? I has been only 3 months since we bought the home.

You can’t ‘get out of a mortgage’. You agreed to a contract with a lender, and you are expected to honor the contract.

The only solution is sale of the property to terminate the mortgage, or refinance without YOUR name on it. This will take the cooperation of your fiance, of course.

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Say if me and a co-buyer buy a home together (both first-time home buyers), and get a conventional loan from a bank. If later, one of us wants to take our name down the title, would that be allowed? Would the bank re-acess the other person’s credit and issue a new loan to them? What would happen if that person’s credit is not enough to pay for the whole house?

Greetings to you all, I’m sharing this important information to those who have fallend victim of scam that pretend to be lender but are not, if you really need a loan I urgue you to contact now a very reliable loan lender. His email weltland.microfinance@gmail.com
It was like a joke when Mrs Vanessa Kleeberger referred me and I was offered a loan that I needed to finish my post graduate degree without any upfront fee.
Pls do me one favour by telling him that I Mr Johnson Fred Joe referred you because there is a commission for anyone who referred customers.

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