When it comes to borrowing money to pay for a home, buyers have many choices for financing including conventional and government program mortgages. Patriot offers three Government Insured Program Mortgages that are ideal for most first-time home buyers. They include:
Federal Housing Administration (FHA) Insured Mortgage
An FHA mortgage is a very popular first time-home buyer loan option. Credit score and credit requirements are generally more lenient than they are for a conventional loan. An FHA loan only requires a 3.5% down payment. However, FHA loans require private mortgage insurance (PMI), which will never drop off unless you refinance out of an FHA loan.
United States Department of Agriculture (USDA) Guaranteed Mortgage Loan
The USDA has designated all of Franklin and Fulton counties in Pennsylvania, and most of Washington County, Maryland as eligible for their no money down, 100% financing. USDA guaranteed mortgage loans generally have more lenient credit standards and a very competitive interest rate. Like conventional mortgages, USDA loans are often insured by private mortgage insurance if the down payment is less than 20% of the value of the property being financed. However, PMI can “drop off” when the loan balance is scheduled to reach 78% of the original value of the home. So PMI won’t have to be with the borrower forever with a conventional loan. There are restrictions on this loan, call us to see if you can qualify for this increasingly popular program.
Veterans’ Administration (VA) Guaranteed Mortgage
Created in 1944 by the U.S. Government to help returning service members purchase homes, the VA Guaranteed Mortgage program has helped more than 20 million veterans and their families with an affordable home financing situation. Although there are certain eligibility requirements that must be met to qualify, the VA Loan has distinct advantages over traditional mortgages, such as requiring no down payment and competitive interest rates.
Check out Patriot’s current mortgage rates.
For more information about Patriot’s Government Insured Program Mortgages, you may call717-709-2580, 717-263-4444 or 301-766-7328 to speak with a Mortgage Loan Officer. We’ll help you find a loan program that fits your particular situation the best.