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News You Can Use
Popular mortgage programs in North Carolina
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
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 5% down 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.
FHA Loans
Another popular mortgage program is the FHA loan which allows for a 3.5% down 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.
FHA Loans with Down Payment Assistance
Some first time home buyers also opt to pair a FHA loan up with a down payment assistance mortgage program like NC Housing Finance Agency (NCHFA) or House Charlotte. This isn’t 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 program best fits your needs? Contact me at www.rebeccamadej.com to have a personalized assessment.
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Charlotte area buyers looking for a home mortgage on a Fannie Mae foreclosure now have a local resource for the specialized loans only available on these homes. Pairing a foreclosure up with a HomePath mortgage means buyers can purchase a home at a great price, with mortgage perks to boot.A HomePath mortgage provides:- 30 year and 15 year fixed mortgages
- Max loan to value ratios up to 95% on a primary home and 90% on a second/investment property
Eligible properties:- Fannie Mae foreclosures that are 1 Unit Single Family detached
- PUD/Townhomes
- Fannie Mae approved condominiums
As an added bonus, mortgage insurance and an appraisal aren’t required – lowering the borrower’s payment and closing costs. Depending on a client’s needs, HomePath or FHA will likely be the best choice. If you or someone you know wants a side-by-side comparison, give me a shout and I’d happily help evaluate the available mortgage strategies.
Enjoy this info? Would you like to receive Monday Money Matters – a weekly newsletter with useful mortgage and real estate informtion? Subscribe here or visit www.RebeccaMadej.com to learn more.
