Tag Archives: Home loan

Which Utah Housing Loan is Right for You?

Woman consulting with agentEstablished in 1975 by the Utah Legislature, the Utah Housing Loan Program aims to provide housing for lower-income families who are unable to purchase a home due to lack of funds (i.e. for down payment and closing costs).

You can apply for Utah housing loans here in Ogden from lenders that can guide borrowers throughout the application process and achieve their dream home.

What are the loan types available under this program? And which one is right for you?

First Home Loan

This loan is for first-time homebuyers. You can borrow up to 6% of the previous mortgage loan for down payment and closing costs. To qualify, you must have a credit score of at least 660. Mortgage insurance is also required.

Each county, however, has income restrictions, although most would have a ceiling of $95,000 of annual income.

Home Again Loan

Home Again Loan is for repeat homebuyers. Like the First Home Loan, it offers 6% of the first mortgage loan amount for down payment and closing costs. The program, likewise, sets a credit score of at least 660, and it also requires mortgage insurance.

Score Loan

This loan program is for a homebuyer who has a lower credit score, i.e. below 620. It only offers a lower first mortgage loan amount (4%) for down payment and closing costs. Nevertheless, this loan type can give you a higher interest rate, which would lead to higher monthly payments.

NoMI (No Mortgage Insurance) Loan

NoMI loans are for those with good credit scores, i.e. at least 700. Requiring no mortgage insurance, it offers the highest interest rate of all loans under the Program. However, it only allows one to borrow 4% of the first mortgage loan for down payment and closing costs.

These are some of your choices. Make sure you choose the right one.

4 Things You Need to Know About a VA Home Loan

Getting a Mortgage for a houseAs of 2014, data shows that the U.S. armed forces had around 21.8 million veterans. Despite the numbers, many U.S. veterans are still renting properties, instead of owning them. This is where VA Home Loans come in. This type of home loan give veterans and even active military members the chances to become homeowners. Here are some things you need to know about this kind of mortgage.

What does VA Home Loans mean?

The “VA” in VA Home Loan stands for Veterans Affairs. This type of loan, which is available to active and veteran military members, are sometimes called Veterans Affairs mortgages.

What are the advantages of VA Home Loans?

VA Home Loans can be used not only to buy a property but also to make major repairs and upgrades. What’s good about this home loan is that the U.S. Department of Veterans Affairs guarantees it. It also doesn’t require applicants to pay a down payment. Applicants also don’t need to reach a required minimum credit score to avail it. And because it doesn’t require a down payment, it’s easier to get it compared to standard home loans. While VA Home Loan costs are usually lower, qualified applicants still need to pay a single upfront fee for the funding. VA Home Loans also don’t carry prepayment penalties or fees for early exits.

Who are eligible for VA Home Loans?

Any active or veteran military member can apply for a VA Home Loan. Reservists and members of the National Guard are also eligible. Surviving spouses of military personnel can also apply for a VA Home Loan if the former member died on active duty or through service-related disability.

For active members who wish to apply for a VA Home Loan, they need to be at least in service for six months. National Guard members need to wait six years before they can avail of this home loan type, the same goes for reservists. However, in cases when they are called into active service during the 6-year waiting time, they can qualify immediately after 181 days in service.

Where can I apply for VA Home Loans?

While VA Home Loans are guaranteed by the U.S. Department of Veterans Affairs, this federal agency is not the direct lender. A VA Loan in Ogden, for instance, is made available through private lending companies.

Get a VA Home Loan Today!

VA Home Loans are great options qualified applicants should take advantage of. However, this type of home loan is mainly designed to buy or renovate properties that are ready for moving in, such as condominiums, single homes, multi-unit properties and modular houses. They are not designed for purchasing farms or any commercial properties.

Home Loan Refinancing: When’s the Best Time to Do It?

Home LoanAre you considering the option of refinancing your mortgage but don’t know if it is the right thing to do? While there’s no right or wrong answer on this question, the fact that it’ll greatly benefit you in many ways still remains.

Before you even take a leap into it, you must first understand how it works. Then, think about your financial status and identify your goals. The following factors below will help you determine whether or not refinancing is a good step for you.

Refinancing – How Does It Work?

Refinancing may refer to paying off existing debt obligation and replacing it with a new one. It generally allows the borrower to obtain a loan with better terms and interest rate. Since the property you secure for the loan is still the same, it is easy to refinance it as compared to when you just acquired it.

What are the Possible Costs?

There are two important things you should know when it comes to refinancing cost. The first would be refinancing comes closely to the cost you’ve spent when you applied for your original mortgage. It includes attorney’s fees, closing costs, title insurance, taxes, and other related fees.

The second thing you need to understand is the closing cost. It usually varies depending on the rate you’ve picked. In other words, with lowest rates the closing costs will be higher. Alternatively, a slightly higher interest rate will give you reduced closing costs.

Be reminded that although many banks advertise “no-cost” deals, these are non-existent. The truth behind it is the closing costs will either be added to your loan balance or to the interest rate itself. So, beware of these things.

The Important Factors of Refinancing

To determine whether or not refinancing will benefit you or if you’re eligible to apply, Wasatchpeaks.com says there are key factors you should greatly consider.

Here are some of them:

  • Current Interest Rate – How long will it take for you to recoup the costs?
  • Type of Your Past Loan – There’s a good chance for you to qualify for a home refinance when your previous mortgage was a jumbo loan.
  • Closing Costs – What are the associated fees under the term you’re applying for?
  • Length of Your Stay in the Property – This is important to make sure you recoup the expenses you’ve paid for before you move. If you’re planning to move out right after the completion of payment, then refinancing it wouldn’t be worth it.
  • Your Credit Score – Before you even begin the process, it is necessary to check your credit score first. This will help you confirm whether or not you are qualified to apply for this term.

Refinancing helps you get off from your initial home loan by replacing it with a better term and lower rate. It does sound like a good deal, however, before you proceed be sure you’ve taken everything into consideration and that it will greatly benefit you. Otherwise, you’ll end up losing everything.