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Piett and Wright Las Vegas Attorneys at Law
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509 South 7th Street Las Vegas, NV 89101 Phone: 1-702-566-1212 Fax: 1-702-566-4833 Toll Free: 866-373-0012 E-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it |
| FmHA/FHA/VA Loans |
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FmHA Loans The FmHA program was created to provide loans, loan servicing and technical assistance for farmers who cannot get credit elsewhere. The government either provides loans directly to farmers or guarantees loans made to farmers by private commercial lenders. FmHA loans can be obtained to purchase a new dwelling in a rural area, or to purchase and repair an existing dwelling in a rural area, but not for refinancing purposes. FmHA loans usually have a maximum loan amount which can reach 100% of the dwelling’s market value. To be eligible for an FmHA loan, an applicant must meet the following criteria: • Adjusted annual income may not exceed the area’s moderate-income level as determined by HUD based on family size and location • Applicant must prove creditworthiness, demonstrate adequate repayment ability, and have dependable income. • Applicant must not already own a dwelling • Applicant must be without sufficient resources to obtain necessary housing • Applicant must be a U.S. citizen • Applicant must have legal capacity to obtain a loan and • Applicant must personally occupy the home on a permanent basis. FHA Loans Having assisted the military, the elderly, the disabled, and the impoverished in obtaining financing to purchase a home, the FHA has now focused its efforts on helping minorities and first-time homebuyers. To qualify for an FHA loan, an applicant must meet the credit requirements, afford the mortgage payments and cash investment, and use the mortgaged property as a primary residence. The FHA has stepped in to stem the mortgage crisis plaguing our country by allowing nearly 250,000 homeowners facing foreclosure and bankruptcy to instead refinance and keep their homes. The FHASecure plan allows families with strong credit histories who had been making timely mortgage payments but are not in default to qualify for refinancing. To qualify for FHASecure, homeowners must meet the following five criteria: • A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset; • Interest rates must have or will reset between June 2005 and December 2008; • Three percent cash or equity in the home; • A sustained history of employment; and • Sufficient income to make the mortgage payment. VA Eligibility VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms. VA loans require no down payment and are available from most lenders. In addition, the government limits what lenders can charge for closing costs, origination fees, and appraisal fees. These loans also do not require private mortgage insurance because they are guaranteed by the government. However, qualifying for a VA loan doesn’t necessarily mean you should use one. Some fees recently implemented may mean you can find a better deal elsewhere and the loan may be capped at an amount lower than the median price of a home. VA loans are available to active and former members of the armed forces who meet specific criteria for length and time of service, as well as discharge conditions. Additionally, applicants must provide a certificate of eligibility from the VA. |