Author:
avaxusa
If you are buying a home in North Carolina you may like to know the popular mortgage programs for our area. The top three loan types I see being used are Conventional, FHA and FHA with a down payment assistance program.
Conventional mortgages are loans that adhere to Fannie Mae or Freddie Mac guidelines – ‘Fannie’ and ‘Freddie’ are Government Sponsored Entities that buy and sell conventional mortgages. They set the maximum loan amount ($417,000 for our area) and requirements for borrowers. Conventional mortgages require at least a 5down payment and will require mortgage insurance if the down payment is less than 20 Many borrowers opt for a 30 year term but shorter terms are available.
Another popular mortgage is the FHA loan which allows for a 3.5down payment, instead of the higher percentage required to secure many conventional loans. Taking advantage of the FHA loan program is a great way for buyers to buy a home with a smaller down payment. Another advantage of a FHA mortgage is that the credit qualifying criteria for a borrower are not as strict as conventional financing.
Some first time home buyers also opt to pair a FHA loan up with a down payment assistance program like NC Housing Finance Agency (NCHFA) or House Charlotte. These programs are not a separate loan type but more akin to a sidecar to a FHA loan. Depending on the borrower’s income, credit history and the home\’s price and location, a home buyer can obtain funds for their down payment and/or closing costs.
Want counsel on what mortgage strategy best fits your needs? Contact Rebecca at http://rebeccamadej.com to have a personalized assessment and discussion on your mortgage options.
Article Source: http://www.articlesbase.com/mortgage-articles/popular-mortgage-programs-in-north-carolina-3090405.html
