The Only Mortgage Loan Options Guide You Need
Maybe you've found yourself in a renter’s nightmare. Living with mom and dad has lost its allure. Or your neighbors are having kegger parties that go on for days. Or maybe you’re in a homeowner's nightmare, living in a home with a kitchen from the 70s and carpet even older. It’s time to refinance and remodel, but you’re not sure where to start. Chance are, the number of mortgage loan options is overwhelming.
That's why we produced “The Only Mortgage Loan Options Guide You Need.” You’re about to receive an education few other lenders will offer. AmeriFirst Home Mortgage is a community mortgage lender, so we’re very interested in our community. We want home buyers to understand the home buying process from mortgage pre-approval to FICO scores and down payments. An educated buyer is a powerful buyer, and one who’s less apt to have problems later.
In this guide you’ll find solutions to problems for first time home buyers with no down payment. You’ll discover the answer to the often asked question, “How do I pay for this kitchen remodel?” You’ll understand the difference between a fixed rate mortgage and an adjustable rate mortgage. We’ll even cover a few of the programs you’ve probably heard about – the “evil” sub-prime mortgages and other programs that gave lenders a bad name and left borrowers with a bad taste in their mouths - and let you know why they're not a part of the AmeriFirst way.
Let’s take a look at a few explanations about mortgages. Mortgage loans are typically categorized as either fixed rate or adjustable rate. Sometimes they can even be a combination where the rate is fixed for a certain period of time and then converts to an adjustable rate for the remainder of the loan term. Common loan terms are 30 or 15 years, but we also offer terms as short as 10 years and can offer 20 and 25 year terms in some instances. Conventional mortgages are one way to go, and they typically require a 20% down payment.
Another option is an FHA loan. The Federal Housing Administration (FHA) does not actually issue mortgage loans. Instead, the FHA provides mortgage insurance to lenders like AmeriFirst Home Mortgage.
Customers like FHA loans because they have more liberal qualification requirements. Credit score requirements tend to be a bit lower than other mortgage loan programs. The down payment requirement is 3.5%. You can also have non-traditional credit – great for self-employed borrowers.
Still another option is the USDA Rural Development mortgage. It's one of those hidden gems no one seems to know about. For buyers looking to buy a home with no down payment and are open to suggestion on the geographic location of the home, the Rural Development Mortgage from the United States Department of Agriculture (USDA) is a great zero-down mortgage loan option.
Under the Guaranteed Loan program, Rural Development (RD) guarantees loans made by private sector lenders like AmeriFirst. A loan guaranteed through RD means that, should the individual borrower default on the loan, RD will pay the private financier for the loan. The buyer works with the private lender and makes his or her payments to that lender. Under the terms of the program, an individual or family may borrow up to 102% of the appraised value of the home, which eliminates the need for a down payment.
For more than 25 years, AmeriFirst Home Mortgage has helped first time home buyers realize the dream of leaving that rental behind, and owning a house. Whether it’s conventional lending, an FHA program, VA loan, Rural Development or a 203k home improvement loan, the team at AmeriFirst is here to find the right mortgage for you.
Download the free eBook below, "The Only Mortgage Loan Options Guide You Need." The material in this article is all taken from the free guide, plus there's a lot more available. The 12-page guide is available at the button below.
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