Learn How to Get Your Loan Started at American Mortgage and Financial Services
Goshen, United States - November 28, 2023 / American Mortgage and Financial Services: Mortgage Broker /
American Mortgage and Financial Services has served the greater Goshen community for years. If you want an FHA loan or a VA loan in Goshen, IN, George Burkley, and his team's experience will be valuable in your search. We have taken dozens of families through the loan application process with excellent results. If your family is getting ready to take the first step toward home ownership, we will gladly guide you through the process.
What Is an FHA Loan?
Currently, the median home price in the United States is above $400,000, making them out of reach for many. If you had to pay a full 20%, you would need to scrounge up $80,000 to get financing. However, that will not be necessary, thanks to the FHA loan program.
The Federal Housing Administration administers this program. During the 1930s, there was a wave of foreclosures and defaults, so the government took action. Their efforts led to the creation of the modern FHA, which helped insure mortgage lenders. Consequently, borrowers could obtain cheaper financing options, making loans more accessible.
What Are an FHA Loan’s Benefits?
For most prospective buyers, the biggest draw of an FHA loan will be its lower down payment. If a borrower's credit score exceeds 580, they only need to bring 3.5% of the mortgage to the table. People with credit scores below 580 must bring 10% down. Unfortunately, the program is not available if your credit score is below 500. Typically, banks would not get near somebody looking for a home with a score that low. Nevertheless, the FHA's generous program terms minimize the risk the lender assumes.
If you have never owned a home, this program's lenient guidelines will help. Most first-time home buyers do not have the funds to qualify for a conventional loan. Fortunately, using an FHA loan, the 3.5% down payment requirement is more manageable for most prospective home buyers.
Fixed Rate Options
Several factors determine a mortgage's payment, and one of the biggest is the interest rate. Your budget could inflate if you purchased a home with an adjustable-rate mortgage. Getting a fixed-rate mortgage guarantees your monthly expenses will not change. When your neighbor is complaining about the Fed's latest policy changes, you can relax. Even if the rates climb to 12%, your payment size will remain unchanged, so there is no reason to worry.
Flexible Payment Terms
The term length is another important factor in determining a mortgage's payment size. If you extend the mortgage to 30 years, the month-to-month cost shrinks, and you will have more in your wallet. However, extending the term's length will increase the total interest paid. A shorter term would make more sense if you are primarily concerned about how much interest you pay over the loan's lifetime. Shortening the term will add to the monthly total, but you will pay less in the long run, which is an advantage if you can handle the payments.
Jumbo Loans
Sometimes, your family's purchase budget will exceed what is considered average. When that happens, finding a lender willing to underwrite the loan can be difficult. Our dedicated support staff will work diligently to finalize your purchase's details. That way, you can move into the home of your dreams without compromising because of closing costs.
Choose George Burkley as Your Trusted Mortgage Broker
At American Mortgage and Financial Services, George Burkley is ready to get you into the home you have been dreaming about with an FHA loan in Goshen, IN. Contact us today to request a free consultation and start your journey to homeownership now.
Contact Information:
American Mortgage and Financial Services: Mortgage Broker
216 N Main St
Goshen, IN 46526
United States
Contact American Mortgage and Financial Services
(574) 534-9666
https://americanmortgage.biz/
