Joe L. Rodriguez, Realtor......(915) 626-7925............ Meet Joe L. Rodriguez, Realtor
FINANCING YOUR HOUSE PURCHASE
Revised: 08/21/10 04:33 PM
TYPES OF FINANCING
CASH PURCHASE
With cash in hand, you can negotiate the best. Discounts are possible, even on new homes. Closing costs are minimal and will probable be paid by the seller. The transaction can be completed in a matter of days if desired.
GOVERNMENT INSURED FINANCING (FHA or VA)
........FHA (Federal Housing Administration) LOAN
If your credit is good or can be corrected by paying off some accounts, then an FHA loan will be suggested. The government guarantees your loan to the lending institution.
.......VA (Veterans Administration) LOAN
If you are a veteran of the armed forces and your credit is good or can be corrected by paying off some accounts, then a VA loan will be suggested. The government guarantees your loan to the lending institution. You can purchase a house with no money down.
CONVENTIONAL LOAN
A conventional loan is not insured by the government but by Private Mortgage Insurance (PMI). Lending requirements are not as strict and you can obtain a loan even with bad credit. Houses that normally would not qualify for an FHA or VA loan because of their condition, may still be acceptable to a convention lender.
DIRECT GOVERNMENT LOAN
Besides guarantying loans for Veterans, the Veterans Administration also provides loans for the purchase of repossessed homes. These are homes on which the veteran defaulted on the mortgage and the home was repossessed. You do not have to be a Veteran to purchase one of these homes.
PRIVATE LENDER LOANS
Loans can also be obtained from Private Individuals. Their requirements may not be as strict, but generally, the interest rate is higher.
LOAN ASSUMPTION
Certain types of loans can be assumed. That is, that an individual can take over the payments of an existing loan. On some of these loans, a person might have to qualify for the loan, and on others, the person simply just takes over the payments.
SELLER FINANCING
An owner of a property that owns a property outright, can choose to finance the purchase of his home himself. After agreement on price, terms, and interest rate, a buyer can get financing straight from the owner. The requirements are determined by the owner.
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