There are a lot of people who rent because they think they can't afford a home of their own. Many don't have the savings for a substantial down payment. If you would love to own a home, but are uncertain how to go about obtaining financing, you should talk to a Realtor. There are government backed loans available for moderate and low income first time home buyers. The FHA financing California lenders offer might be a perfect option.
The most popular option is the 203b plan. This is a fixed rate loan that will pay for ninety-six and a half of the purchase price. You will pay the money back over a thirty year period. Insurance will be added to your monthly payments, which guarantees that the lender is protected if you default on your loan. With a fixed rate loan, your payments won't go up or down over the period of your mortgage.
If you need low initial house payments, you might decide to apply for an adjustable rate mortgage. The advantage to this plan is that the lender is going to give you a lower rate for taking a chance on interest rates. Your payments can't go up more the a percent in any given year. The maximum percent your mortgage interest can increase over the life of the loan is five percent.
Some homeowners have trouble making payments when their adjustable rate mortgages go up. In that event, it may be possible to obtain a secure refinance loan directed specifically toward these homeowners. You don't have to have a government backed loan to qualify for the refinancing. There are restrictions when applying for these loans however. Your income has to be reliable, and you must be in a position to make the monthly payments.
Seniors who are interested in some additional income can quality for reverse mortgages. The commercials advertising them are on television all the time and all over the internet. Reverse mortgages involve turning current equity in a home into cash for a homeowner who is at least sixty-two years old.
The federal government actually wants to encourage homeowners to purchase or renovate existing homes to make them more energy efficient. In order to make this attractive, FHA offers loans that are included in monthly payments for new homeowners or with a refinancing package for existing homeowners. You can get up to five percent of the property value or four thousand dollars.
These home loans are not only for single family residence purchasers. If you want to buy a condominium, you can get financing similar to the 203b loans offered for single family homes. There are restrictions however. For example, if a building is converted from apartments to condos, and you buy one of those condos, the insurance might not be provided.
Home ownership may be more possible than you think. If this is something you want to pursue, you should talk to an experienced Realtor. You might be surprised at what you can afford.
The most popular option is the 203b plan. This is a fixed rate loan that will pay for ninety-six and a half of the purchase price. You will pay the money back over a thirty year period. Insurance will be added to your monthly payments, which guarantees that the lender is protected if you default on your loan. With a fixed rate loan, your payments won't go up or down over the period of your mortgage.
If you need low initial house payments, you might decide to apply for an adjustable rate mortgage. The advantage to this plan is that the lender is going to give you a lower rate for taking a chance on interest rates. Your payments can't go up more the a percent in any given year. The maximum percent your mortgage interest can increase over the life of the loan is five percent.
Some homeowners have trouble making payments when their adjustable rate mortgages go up. In that event, it may be possible to obtain a secure refinance loan directed specifically toward these homeowners. You don't have to have a government backed loan to qualify for the refinancing. There are restrictions when applying for these loans however. Your income has to be reliable, and you must be in a position to make the monthly payments.
Seniors who are interested in some additional income can quality for reverse mortgages. The commercials advertising them are on television all the time and all over the internet. Reverse mortgages involve turning current equity in a home into cash for a homeowner who is at least sixty-two years old.
The federal government actually wants to encourage homeowners to purchase or renovate existing homes to make them more energy efficient. In order to make this attractive, FHA offers loans that are included in monthly payments for new homeowners or with a refinancing package for existing homeowners. You can get up to five percent of the property value or four thousand dollars.
These home loans are not only for single family residence purchasers. If you want to buy a condominium, you can get financing similar to the 203b loans offered for single family homes. There are restrictions however. For example, if a building is converted from apartments to condos, and you buy one of those condos, the insurance might not be provided.
Home ownership may be more possible than you think. If this is something you want to pursue, you should talk to an experienced Realtor. You might be surprised at what you can afford.
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When you are looking for information about FHA financing California residents can come to our web pages online today. More details are available at http://www.californiamortgagegroup.net/products.aspx now.
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