....regarding LOANS!

There are multiple loans available in today’s marketplace.  However, it is important to work with a mortgage lender who is experienced and familiar with the trends and flexibility that the market of interest allows.  Each borrower is different.  A good mortgage lender will customise your loan to suit you so that you get the best of both worlds.  Some loans are:
  1. FHA Loans
    1. 1-4 Family house
    2. Absolutely no Investors
    3. 3.5% down payment
    4. 6 months reserve
    5. No co-op loans
  2. VA Loans
  1. COE - Certificate of Eligibility
  2. No PMI, but a funding fee of 1%
  3. Loans are 100% assumable
  4. No co-op loans
  5. Not for Investors
3. Conforming/ Conventional Loans
  1. 5% Minimum down payment
  2. PMI
A First Time Homebuyer is someone who has not owned a home in the past three (3) years.  If you have never owned a home you are also considered a first time homebuyer.  There are three different parts of the lending process:
PRIMARY Market -.These are the actual lenders in the marketplace. The government sells money to the mortgage Banks.
SECONDARY Market - These buy loans or insure them.  They do not make or offer loans.  They create liquidity in the marketplace.  They include: FNMA, FHLME, GNMA
TERTIARY Market -  These sell money.  Real Estate agents sell houses.  Mortgage Banks sell money.  They buy money from the government and FANNIEMAE, etc.. and sell it back for another rate (i.e. a markup).  
The borrower is the mortgagor and has to contract two documents with the lender in order for the deal to be effective:
  1. The Promissory Note
  2. The Mortgage

In some situations it is possible to have more than one FHA loan.  There is always a FHA# associated with each new home address/ location.  It is very important to note that if you are late on a Federal or Student Loan it’s very unlikely for you to get a FHA Loan.

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