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Conventional |
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1) Fannie Mae |
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Fannie Mae is the common name of the Federal National Mortgage
Association. Fannie Mae is a congressionally chartered,
shareholder-owned company that buys mortgages from lenders and
resells them as securities on the secondary mortgage market.
Before approving you, Fannie
Mae looks at a number of factors including credit ratings,
debt ratio, and employment history. Loans that are approved
via Fannie Mae should qualify for a better rate. |
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2) Freddie Mac |
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Freddie Mac is the common name for the Federal Home Loan
Mortgage Corporation. The 2003 maximum loan amount for both
Fannie Mae and Freddie Mac is $322,700. Freddie Mac does not
issue mortgages directly, rather, they buy mortgages from
lenders and sell them as securities on the secondary mortgage
market.
Before approving you, Freddie
Mac looks at a number of factors including credit ratings,
debt ratio, and employment history. Like Fannie Mae, loans
that are approved via Freddie Mac should qualify for a better
rate.
A mortgage broker can also help
you find the best rates from various lenders for Freddie Mac
loans as well as Fannie Mae loans. You may also get more
information on an FHA Loan. |
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Government |
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1) FHA Loan |
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FHA Loan (Federal Housing Administration) has some advantages
over conventional loans. Since FHA loans are insured by the
government, they generally have more lenient qualification
requirements, lower down-payment requirements, and they are
assumable loans. The maximum loan amount for an FHA loan
(single-family) ranges depending on the county where you live.
You can contact a mortgage specialist for these maximum
amounts for your specific county. Government loans (including
the FHA loan) make up 20 percent of residential mortgages in
the U.S. [Get FHA Home Loan Information] |
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2) VA |
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VA (Veterans Affairs) loan carries many of the same advantages
as an FHA home loan. However, to qualify for this loan, you
must be a qualifying veteran, the unmarried widow of a
veteran, a Public Health Service Officer, or an active-duty
serviceman. The maximum loan amount for a VA-guaranteed loan
is $240,000. However, if you can make a large down payment, VA
is now considering loan amounts above $240,000. Generally, you
would need to put down 25% of the value exceeding $240,00, and
you can’t exceed conventional loan limits. No down payment is
required for most VA loans below $240,000. A mortgage
specialist can assist you with a VA loan. |
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Non-Conforming
Loans |
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1) Jumbo Loans |
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Conventional loans that are too
large for government agencies are called jumbo loans.
Currently, any loans over $322,700 are classified as jumbo
loans. Jumbo loans have higher interest rates than conforming
loans - typically 0.5 percent to 1 percent higher. Jumbo loans
also may have higher down-payment requirements. Read more
about Jumbo Loans. |
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2) Bad Credit Loans |
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If you've had credit problems in
the recent past, lenders consider you a higher risk borrower.
In such circumstances, the credit decision includes factors
beyond credit scores and credit history, often including
employment, income, expenses, assets and other factors as
considerations. To get additional information, speak with a
mortgage specialist. You may also
read more about Bad Credit Loans. |
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