COURSE INDEXPreliminary Questions
Home Buying Start & Registration
Budgeting To Buy a Home
Find Your First House
Inspect Before You Buy
Shop For a Mortgage Loan
Home Mortgage Loan Process
Credit Score and Credit Report
Home Mortgage Loan Closing
Being a Home Owner
Mortgage Quote Request
Get Started Below!
There are numerous direct lending, subsidy, and mortgage insurance products available through federal, state, and local agencies. Direct lending is provided through federal Rural Economic and Community Development (RECD – formerly the Farmers Home Administration), state housing financing agencies, and various local governments. Mortgage insurance or loan guarantees are provided through the Federal Housing Administration (FHA), the Department of Veteran Affairs (VA), and RECD.
FHA administers numerous mortgage insurance programs.Although there are no income restrictions, most FHA insured financing is provided to lower income, first-time home buyers.
VA guarantees mortgages for veterans of the armed services, those currently in the armed services and their spouses. VA guaranteed mortgage guidelines are similar to FHA except, a loan-to-value ratio of 100% is allowed.
RECD administers several programs for low to moderate income families who want to buy new or existing homes in rural areas. The homeownership loans may be used for building, buying or improving a home.
State housing finance agencies generally issue tax-exempt mortgage revenue bonds (MRBs) to be used for family mortgages with below-market interest rates. Federal regulations outline both income and house price maximums. Some states use part of their MRB authority to issue Mortgage Credit Certificates (MCCs).Homeowners use MCCs to lower their taxable income, thereby reducing their tax burden and increasing their disposal income.
State and local governments offer many homeowner programs for lower and other
underserved households. Some are funded with federal funds, or state/local originated
housing trust fund revenues. These programs offer local flexibility and have
favorable underwriting and repayment terms.
TYPES OF MORTGAGES
Prior to applying for a loan/mortgage for your home, you need to understand the various type of loan products available, and the specific characteristics of each. The prevailing interest rates and loan type will greatly influence the evaluation process when trying to qualify for a mortgage.The most common types of mortgages are described below.
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Table of Contents | Homebuyer Course Start Page | Find A Realtor | Budgeting To Buy a Home | Neighborhoods | Find Your First House | Inspect Before You Buy | Shop For a Mortgage Loan | Mortgage Home Loan Process | Credit Score and Credit Report | Home Mortgage Loan Closing | Being a Home Owner
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