HOME LOANS
Friday, May 28, 2010
, Posted by BEST LOAN at 11:54 PM
HOME LOANS:
Now a days people are very much interested in home loans.but its very necessary for you to get complete knowlge about the schemes different companies or banks are offering for home loans. These days a lot of ridiculous loan programs are here that seemingly allow anyone to qualify for a home loan. There are 1% start rate loans, often referred to as neg-ams or pick-a-payment programs, and 40-yr and 50-yr loans that stretch the payment out over what seems like a lifetime.Most prospective homeowners these days seem to be interested in 100% financing, because they don’t have the assets necessary for a down payment.
One way home loans are differentiated is by their GSE eligibility. If the loan meets requirements set forth by Fannie Mae and Freddie Mac, it is considered a conforming loan. If the loan doesn’s meet all requirements set forth by the pair of GSEs, it is considered “non-conforming.”here’s a guideline for you is generally, a mortgage with a loan amount below $417,000 is considered conforming, while amount above $417,000 is considered a “jumbo loan.” the conforming limit changes annually, and has risen in the past few years as housing prices skyrocketed. As in Alaska and Hawaii the confirming limit is $625,500.A jumbo loan may meet all of Fannie Mae and Freddie Mac’s loan underwriting guidelines, but if the loan amount exceeds limit, it is considered as non-conforming and carry a higher interest rate as a result.
Mortgages are classified as either “conventional loans” or “government loans.” Conventional loans can be conforming or jumbo, but are not insured or guaranteed by the government.There are government loans, such as the widely popular FHA loan and VA loan. The max loan amount for these types of loans varies by country.Now that you know a bit about different loan types, we can focus on loan programs.there are a no of different programs here, that more seem to surface everyday.
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