Intend to purchase a new home? Check out our FAQ section to clarify certain doubts that you may have with regard to the buying process.
The Rural Development mortgage plan was introduced by the United States Department of Agriculture. It aims to provide an avenue for low to moderate-income earners to be able to own a home in various rural and suburban areas.
To check for eligibility, visit www.usda.gov for income requirements and approved locations.
Yes, it can be used to finance your next home but not for a second home, investment property, or vacation home.
This loan is guaranteed by the U.S. Department of Veterans Affair. Its purpose is to aid active military members, veterans, and surviving spouses to own a home. VA loans are provided by financial institutions that are VA-approved and backed by the government.
A typical VA loan does not require you to make any down payment.
This loan is insured by the Federal Housing Administration. Its goal is to help more people own a home. It requires a down payment, but its amount is relatively much lower than other conventional loans. An FHA loan is recommended for first-time buyers.
A refinance means taking out a new loan to replace the old loan at a new term and interest rates.
Several reasons for refinancing are as follows:
Refinancing a VA or FHA loan requires little documentation as compared to conventional loans. There is also no requirement of an appraisal for qualifying borrowers.
A cash out refinance lets homeowners use their home equity to obtain cash. This cash can be used to consolidate debts, make home improvements, and more. The borrower gets a higher loan and the difference in amount is received at closing. The refinanced loan may have a higher interest rate because the loan amount may be a higher percentage of the property’s value.
The term refers to a Certificate of Eligibility which is presented to those who are eligible for a VA loan.
During the application of a VA loan, the financial institution will work with borrowers to obtain the COE before the loan process can commence.
No, only veterans or surviving spouses can apply for a VA loan.
There is no minimum credit score required to apply for a VA loan. However, each lender has different guidelines that applicants must meet.
Yes, you can use it for your primary residence as many times as you need as long as it is just a single VA loan at any one time.