Loan Types

There are a variety of loans available to qualified borrowers. At Always The Best Rate, we offer Conventional, FHA, VA, USDA and no PMI (Private Mortgage Insurance) loans for people looking to move to Yardley PA or anywhere in Bucks County.  We can compare and evaluate loan programs that best meet your specific needs. Get in touch with us today so we can help you meet your financial goals and become a Pennsylvania homeowner.

Conventional Home Loans in Bucks County

A conventional mortgage refers to a loan that is not insured or guaranteed by the federal government. A conventional mortgage meets the guidelines set by Fannie Mae and Freddie Mac. It can have either a fixed or adjustable rate.

• Fixed-rate mortgages have a set interest rate for the entire length of the loan term, which is generally between 10 and 30 years.
• An adjustable-rate mortgage (ARM) has a term of 30 years with a low introductory rate for a fixed period followed by periodic adjustments according to a specific benchmark, typically a specific LIBOR or a T-Bill index.

Conventional loans can be conforming or nonconforming.

• Conventional loans are “conforming” if they are generally $766,550 or less for a single-family home. Conforming loan limits can be higher in pricier regions of the country.
• Loans above the lending limits set by Fannie Mae and Freddie Mac are called nonconforming or jumbo loans.

There are also established guidelines for borrower credit scores, income requirements, and minimum down payments. For example, most conventional loans require somewhere between five percent and twenty percent down. First-time homebuyers may qualify for a three percent down-payment program.

Conventional loans have scored rate adjustments which increase the costs for lower scores and lesser down payments. If you are putting less than twenty percent down, you will probably need PMI (Private Mortgage Insurance) which is also scaled based on your score and down payment amount.

In addition to buying your primary residence, Conventional mortgages can be used for the following:

• Purchase a second home
• Purchase a 1-4-unit investment property
• Refinance for Rate & Term
• Refinance to get cash out

FHA LOANS in Yardley PA

The FHA loan program was created as part of the National Housing Act of 1934 in response to the banking crisis during the Great Depression. The goal of FHA is to provide stability in the housing market by increasing the availability of funding for home building and purchasing.

An FHA loan is a mortgage loan guaranteed by the Federal Government, specifically, the Federal Housing Administration (FHA). This government guarantee reduces the financial risk to FHA-approved lenders if the borrower defaults on their mortgage payments.

VA LOANS in Bucks County, PA

VA loans are home loans for the purchase of a primary residence available to consumers who have served or are presently serving in the U.S. military. While the Department of Veterans Affairs (VA) does not lend money for VA loans, it backs loans made by private lenders (banks, savings and loans, or mortgage companies) to Veterans who qualify. Those eligible for a VA loan include:

• Veterans
• Active-duty personnel
• Reservists/National Guard members
• Some surviving spouses

Benefits

• No down payment required (unless required by the lender or the purchase price is more than the reasonable value of the property).
• Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least five percent and exemption for Veterans receiving VA compensation).
• Closing costs are comparable with other financing types (and may be lower).
• No mortgage insurance premiums.
• An assumable mortgage.
• Right to prepay without penalty.
• VA assistance to Veteran borrowers in default due to temporary financial difficulty.

USDA HOME LOAN

A USDA home loan also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture. This program provides low and moderate-income households the opportunity to own a home that must be their primary residence in eligible rural areas.

Call or e-mail today to discuss your options.

Questions can be directed to Yardley Mortgage Broker, Linda Feriod.

Linda@AlwaysBestRate.net

215-380-0103