There are some really great advantages when you use an FHA or VA Mortgage to purchase a home, or when you refinance an existing loan. But there are Pros and Cons you want to consider before making a decision.
Please use the quick summary chart below that shows some of the differences between the loan types.
|
As of Jan. 2010: |
Conventional
|
FHA
|
VA
|
USDA*
|
| Down Payment
|
5%
|
3.50%
|
0%
|
0%
|
|
Monthly Mortgage Insurance
|
anywhere from .12% to 1.2% per year, based on down
payment.
|
.55% per year / none if 10% down and 15 year term.
|
NONE
|
NONE
|
| Additional Costs
|
Increase to rate or penalty based on credit score
|
2.25% MIP added to your loan balance.
|
0% - 2% -3% Funding Fee added to your loan balance.
|
2% Funding Fee added to your loan balance.
|
| Credit Guidelines
|
toughest
|
more lenient
|
more lenient
|
more lenient
|
**FHA announced the following changes in spring/summer of 2010:
- Upfront M.I.P. will be raised to 2.25%, and monthly M.I.P. will go up as well;
- Seller paid closing costs will be reduced to 3% from 6%.
As you can see, FHA, VA, and USDA may be more appropriate for you if:
- You have little down payment
- You have had some credit issues in the past
*USDA loans are limited to certain areas deemed rural by the
USDA.
No Cost Refinance:
For many FHA and VA Mortgage Holders, it is possible for you to refinance for little or No Cost!
We often are able to do this with special pricing that allows us to pay some if not all of the
Settlement Costs for you.
** This means that you may not have to bring money to closing, and you may not have any money
added to your current principal loan amount. This way, even a $50.00 month savings is
worthwhile because there may be no closing costs or fees to recoup.
Why? Because nothing has been charged to you or added to your loan.
And in many cases, you will receive a refund from FHA if you have had your loan for less than 7 years,
and closed before January 1, 2001!
Credit Issues:
For borrowers that may have some problems on their credit report, but have paid
their FHA or VA Mortgage on time for at least the last 12 months, you may be eligible
for our Streamline Refinance that allows us to refinance your loan back with FHA or VA,
even though you have some credit problems on debts other than your mortgage.
This allows us to refinance many borrowers with questionable credit and give them
the ability to enjoy lower rates without big origination fees or points.
- Get Started with Churchill Mortgage
- Would you like to Apply Now by filling out our loan information form?
- Would you like to discuss your loan options by phone?
Give us a call at 1-888-562-6200
- Or let us know the best time to Call You Back, and one of our Loan Specialists will contact you as requested.
One Of The Largest Financial Decisions Of Your Life
When you are making one of the largest financial decisions of your life, you need to work with someone that is willing to spend time with you to help you understand the process and your options. No matter your experience level or your financial picture, you still need a caring, knowledgeable professional that keeps up with the changes that regularly occur in the mortgage industry.
Our Purpose is to deliver the highest standard of information, resources, and service to everyone that contacts us, and to do so with integrity and accuracy. This allows our customers to confidently recommend their acquaintances, friends, and family members to us for their mortgage needs. Count on us to deliver exceptional service you will want to tell others about.
