Government Loans

FHA loans:

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). Available to all buyers, FHA loan programs are designed to promote home ownership for the many American's who can't afford a large downpayment.  As an FHA approved lender, Lakewood Home Finance can help you determine if a FHA loan is available for your situation.

FHA loan programs are particularly beneficial to those buyers with no or little available cash. The rates on FHA loans are generally market rates even for borrowers with past credit issues.  Check to see if you Qualify.

Some of the other benefits of FHA financing:

• Only a 3.5 percent down payment is required (Can be structured with a 0 down payment in many situations using gifts or non-profit grants).
• Closing costs can be financed by using seller concessions.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• More flexible underwriting criteria than conventional loans
• Loans are assumable to qualified buyers.
• Right to prepay loan without penalty.
• A stable 30-year fixed rate mortgage (no rate adjustments).
• Can be used for purchase and refinance transactions.

VA Loans:

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.  Check to see if you Qualify.

Other benefits of a VA loan include:

• Closing costs are comparable and sometimes lower - than other financing types and can be financed using seller concessions.
• No monthly private mortgage insurance requirement.
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee is generally financed in the loan amount (not out of pocket).

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.  Lakewood Home Finance is approved by VA to offer VA secured mortgages.

USDA Loans:

USDA loans are offered by the United States Department of Agriculture and are often commonly referred to as Rural Development loans.  Similar to FHA and VA loans, USDA loans are backed by the Government and are designed to promote home ownership in underserved areas of the country.  While not all property locations will qualify for a USDA backed loan, generally speaking, homes located outside of the city limits (or in cities with fewer than 50,000 people) are often eligible.  In addition to physical location restrictions, household income is also a criteria for eligibility.  Qualifying income is based upon the median income for the region and number of individuals planning to occupy the home.  Since no monthly mortgage insurance is required on USDA loans, monthly payments on this program are often lower then other Government backed loan options.  Check to see if you Qualify.

Other benefits of a USDA loan include:

• No down payment requirement (will finance 100% of the home purchase).
• Closing costs are comparable to other financing types and can typically be financed into the loan (no money out of pocket).
• Low 30-year fixed rates are available.
• Credit score and credit history is more flexible then most other loan products.
• Right to prepay loan without penalty.
• No monthly mortgage insurance requirements.
• Minor repairs can sometimes be financed into the purchase (new carpet, new applicances, etc.).

To find out if any of these above options will work for you, please fill out the Qualification form, or the contact form below.