Buying a home somewhere in the wide expanse of the United States metropolitan culture, is a dream nurtured by millions. But, home buying is not so much difficult for regular buyers as it is for first-timers. Thankfully, the scenario currently is in favor of first-time home buyers and they are finding it easier to get their first home loans at more relaxed rates and conditions that had existed previously. In this context, let us talk about the most important part of the entire home loan scheme; the down payment. What does a down payment mean and why pay? Once you have chosen a home, you can either pay it in cash from your savings or simply borrow money from the bank. In most cases, people need to borrow money from banks and certain banks offer to provide you with 100% financing. But, mostly people do not like settling for the option. This is where the question of down payment arises and one makes the initial payment from his bank account. Once you agree to make a small down payment, the remaining amount of the home purchase would be paid by your bank. The down payment that one needs to make, depends on the type of mortgage he has signed up for. Today there are a number of mortgage loan types and they can also be customized to meet the needs of the borrower. You can take any amount of down payment you wish to have, as long as you have provided the lender with his minimum requirement. The most popular low-or-no-down payment mortgages include FHA loan, VA loans, Conventional 97, USDA loan and Home-ready mortgage. Out of all the mentioned types, VA and USDA allow a 100% financing benefit. The FHA loan allows for a 3.5% down payment, while the USDA and Conventional 97 permits for a 3% down payment plan. While FHA is friendly towards first-timers, VA mortgage rates are the lowest when compared to other mortgage types. How helpful is a down payment assistance program? First-time home buyers often cite that down payments are like impediments in the path of home ownership. Reason why, most first-timers opt for down payment assistance programs (DPAs). To most people’s surprise these programs actually exist and are quite wide spread all over USA. Millions of people have till date benefited from them, because qualifying for a loan with them is not very difficult. If you are looking forward to secure some help from down payment assistance programs, you will have to get in touch with the best VA loan advisers and other cities of US to weigh your chances.
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Being one of the most populous as well as prosperous states of the United States of America, California stands for opportunities. Known for its finance, technology as well as real estate industries, California enjoys steady popularity for its glamorous lifestyle developments. The department of Veteran Affairs of the USA had received orders from the President and the Congress to establish a GI bill to coordinate moves and establish benefits for serving people of the country. A number of schemes has been initiated in that interest, among which the Home Loan Guaranty Program is the most talked about. The program has helped several veterans and military men residing or returning to the state, to have a secure home of their own where they can stay with their families. Now, the question arises that every year the country produces thousands of military men. Are they all qualified for the Veteran Affairs home loan scheme? Not exactly. The loan scheme is an honor that is bestowed upon all those veterans and serving armed force officers who have given their selfless service for the country for years. Not all army men fit within the category and therefore there are certain eligibility qualifications set to ensure that only the rightful people get to enjoy the benefits. Men who have served 180 days of peacetime and 90 days of war time in the US army are eligible for the loan. They must also show proof of honorable discharge from duty. However, people who have served less than the stated period due to service-related disability, would also qualify. According to the Director of Product Development at the Mortgage Investors Group, the VA loan program has been exceptionally successful among veterans. It also promises to benefit veterans who live overseas. The idea behind the scheme was to give serving army people the assurance that while they are away, their families are leading a secure life inside their own home in cities like California. However, it should be noted that these loans suffice only primary needs and one should be staying in his home once he acquires it. That means, one cannot simply go and buy a beach house with the loan, where he would only stay during weekends. Those who already own a primary residence on a loan, can avail refinance benefits of VA to reduce the interest rates of the previous mortgages and thus tensions of a new appraisal would not affect them. Those who are into real estate and VA home loan California would always say that besides VA loans there are certain conventional loan types as well, which are also good for home ownership purposes. The Veteran Affairs loan rides past all of them because of the 100% financing guarantee along with no down payment requirements that it offers. The loan amount that VA promises goes up to as much as $1.5 million. Nevertheless, one needs paying some amount of down payment if she wishes to get a loan up till that amount. It should also be mentioned in this context that for getting a VA loan sanctioned in a state like California, one needs to show that he/she has got enough money in the bank or has a steady source of income to repay monthly amounts in time. Moreover, the program also needs the borrower to pay up to 4% of the closing costs. A very unique feature of the loan is that one gets no amount of money added to the mortgage insurance payment, if less than 20% down payment on the home is made by the borrower. So, if you are looking for a loan program that would care the least about what credit score you are holding and would also offer you reduced rates of interest on loan, VA loan is the one you are looking for. Get hold of a Veteran Affairs loan specialist or adviser and find your dream home at the earliest.
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