Types of Mortgage Loans offered by All Western Mortgage

When it comes to buying a home, it is important to approach a lender that can offer you a plethora of loan options to choose from. All Western Mortgage is one such online mortgage lender in the United States of America that has been helping people buy their dream homes since 1981. As per the borrowers’ requirements, we offer a choice between 4 major conventional and non-conventional types of mortgage loans. 

They are as follows:

Fixed Rate Mortgage: As the name suggests, the interest rate on these types of mortgages remain fixed throughout the life of the loan. We offer fixed rate mortgages for a duration of 30, 25, 20, 15, or 10 years. So, you can choose your repayment period as you please. 

Adjustable Rate Mortgage: Adjustable rate mortgages can be secured at lesser interest rate than the fixed rate mortgages. You can choose between 3/1, 5/1 and 7/1 ARM plans at All Western Mortgage. The interest rate remains fixed for the first 3, 5 or 7 years respectively under these plans and begins adjusting annually thereafter. All these types of loans are available for a period of up to 30 years. 

FHA Loans: You can qualify for All Western Mortgage’s FHA backed loans with a down payment of just 3.5% and a credit score of 620. 

VA Loans: If you are a veteran then you can qualify for our VA backed home loans. VA loans require no down payment and we offer 100% finance with competitive interest rates that are mostly lower than conventional loans. 

So, what are you waiting for? If you have a home to buy, All Western Mortgage has a home loan tailor-made for you. Give us a call on 702-850-2790 today or click here to get started.

Difference Between Conventional & Unconventional Types of Mortgages

If you are currently out in the real-estate market scouting for home loans, then you must have come across terms such as conventional home loans and non-conventional home loans. But, what does these terms actually mean and what difference will it make if you choose one over the other? Let us find out.

Conventional Loans

Conventional mortgages are those types of mortgage loans, which are NOT secured or backed up by any government sponsored entity. They are also known as conforming loans as they meet the guidelines set by Fannie Mae and Freddie Mac, which are the two biggest investors of conventional home loans. All conventional types of mortgages require a down payment of at least 20%, otherwise you are required to buy Private Mortgage Insurance.

There are basically two types of conventional home loans:

Fixed Rate: As the name suggests, the rate of interest remains the same throughout the term of the loan.

Adjustable Rate: The rate of interest changes every year after the initial fixed rate period is over. The rate can go up or down depending upon the conditions of the market.

Unconventional Loans

All those mortgages type of loans that do not fall under the category of conventional loans are called unconventional or government loans. These types of mortgages are backed by the government of the United States and offer lower interest rates and more flexible terms to certain buyers. These loans help those borrowers in purchasing a home, who couldn’t have qualified for conventional mortgages.

Unconventional mortgages are of two types:

FHA: An FHA loan is backed by the Federal Housing Administration and allows you to purchase a home with just 3.5% down payment.

VA: These loans are backed by Department of Veteran Affairs and are available for military veterans and current army members. These loans allow veterans to purchase a home with zero down payment.

In order to know more about different types of mortgages, click here.  Or you can also call All Western Mortgage at 702-850-2790.

Common Myths Associated With VA Loans

VA Loans provide immeasurable benefits to the veterans who have served our country. But, there are a few myths attached to them that prevent many eligible veterans from availing their benefits. Considering the years and quality of service veterans have provided to this country, it is our duty to keep them well-informed about their privileges.

So, here we are, debunking the most common misconceptions related to VA loans.

Myth #1: VA Mortgages feature high interest rates

On the contrary, VA loans offer lower interest rates than both conventional and FHA Loans. There is also no down payment requirement with these loans and you can get 100% finance for the entire amount of the home.

Myth #2: It takes forever to close a VA backed loan

If some well-meaning but ill-informed friend or relative has told you that VA backed loans take forever to close, kindly throw that advice out of the window. As per the Ellie Mae report of 2014, both VA and FHA loans take about 40 days to close, whereas conventional loans close on an average of 39 days. Now, the average closing time of VA backed loans is definitely more than conventional loans, but considering their benefits, a delay of one day won’t harm that much.

Myth #3: VA loans are not growing

You might have heard that VA loans aren’t growing lately, but that piece of information is a complete BS. Over the course of past 70 years, these veteran loans have helped more than 20 million veterans to purchase their dream home. Apart from that, VA backed loans have a seen a growth of 370 percent between the fiscal years of 2007 and 2013.

So, now that your qualms about applying for a VA loan have been negated, call All Western Mortgage now and get your VA backed mortgage approved today. For information about VA loans, click here. 

100% Financing on Home Loans: Is it Possible?

What are 100% financing home loans?

100% financing home loans, as the name suggests, are those mortgage loans that finance the entire purchasing price of a home, thereby eliminating the need of a down payment. Both new and repeat buyers are eligible for such a type of a home loan through the government sponsored programs that are applicable throughout the United States of America.

Many home buyers assume that zero down payment home loans ceased to exist after the mortgage crisis of the last decade, but some mortgage options survived and are available even in 2016 that allow you to finance the entire purchase price of a home. So, don’t be surprised when I tell you that you can still buy a home with spending zero to little money from your own pocket as down payment.

If you are wondering that why most loans require a down payment and why don’t they just normally finance the 100% amount of a home’s purchase price, then it is due to the simple fact that they wish to be paid back. It has been established collectively by the banks and lending institutions around the globe that higher the amount of down payment, lower are the chances of a borrower defaulting on a loan. Therefore, the amount of down payment is given more importance than the credit score in determining risk.

The standard down payment amount today is 20% of the cost of the home and anything less than that requires the homeowner to take some kind of insurance, like Private Mortgage Insurance (PMI). The premium of the insurance is then added to the amount of borrower’s loan. The insurance ensures that the lender will get his money back even if the borrower defaults.

However, there are some mortgage programs for which, even with zero down payment, the government provides insurance to the banker. Here are some of them:

VA Home Loans

The VA loans have been around for years, but have become popular these days because they require zero down payment and have lenient credit requirements. People with a military experience of at least two years (or 90 days if still serving) are eligible for this loan guaranteed by the Department of Veteran Affairs.

As per the estimates of the Veteran Administration, approximately 23 million people in the country are eligible for a VA home loan. The funny part is that half of them don’t even know that they are eligible for it. Anyone who is eligible can and must avail the benefit of this zero down payment home loan program. Moreover, VA loans generally offer lower interest rates than conventional mortgage options and they also don’t require a monthly mortgage insurance fee.

VA loan is the most affordable option in terms of upfront and monthly costs as compared to other forms of low down payment mortgages. With a VA home loan, you can purchase a home with zero down payment and have the seller pay majority of the closing costs. This means that you can own a house without spending any money from your own pocket. Lenders also offer VA loans at low credit scores. You can even secure a VA loan with a credit score as low as 620, from some lenders.

Therefore, VA loan is the easiest and most affordable 100% home financing option and if you have served in the military or someone in your family has, check out your eligibility criteria for a VA loan and avail its benefits.

Check whether you are eligible for a VA loan or not, here.

FHA as a Zero Down Payment Loan

The FHA, or Federal housing Administration, loans generally require a down payment of 3.5%, which is quite a lot of money. For instance, 3.5% of a $400,000 loan is $14,000. But, not many people know that there is an obscure FHA rule that allows you to get around this requirement to some extent.

As per the FHA rules, you can receive a gift for the entire amount of down payment. You can take this gift from a family member, spouse, fiancé, not for profit organization or any other eligible source. This means that you don’t have to come up with the down payment amount on your own if you can find a legitimate gift source.

So, even while it is not technically a 100% finance loan, the end result is still the same. If you have a gift source, you don’t have to pay anything as down payment.

Another niche FHA program for a select group of people is the Good Neighbor Next Door Loan. Under this program, public employees like teachers, police officers etc. can buy a home with a down payment of $100. Again, this is not 100% financing, but it is the next best thing.

USDA Home Loans

USDA home loan is another type of home loan that allows you to finance 100% cost of the home. It requires zero down payment and even the credit score requirements are not that high. Also, you don’t have to be in a specific job or arrange for down payment as a gift for acquiring this loan. This might sound too good to be true, but it is a completely authentic loan option that has provided a home to more than a million buyers since 1949.

This government sponsored loan program exists with an aim to encourage home ownership in the rural areas.  Therefore, this loan option is also known as Rural Development Loan.

In order to qualify for a USDA loan, you must have enough income to support your monthly installments and the needs of your family, but having too much income leads to disqualification. Your income must fall within the limits set by USDA. Another major requirement for qualifying for this program is that you must build/buy a house that lies within the USDA’s geographical boundaries. The program specifically targets the rural areas, but many eligible areas are suburban.

USDA mortgage also allows the seller to pay for your closing costs and with this loan option, sometimes it is cheaper to move into your own home than renting a place. However, there is a 2% upfront fee attached with this loan, but it can be accommodated in your loan amount and doesn’t have to come from your pocket at the time of taking the loan. The USDA also charges $33.33 per month for every $100,000 borrowed as an ongoing fee for making this program accessible to other future buyers.

Even with the additional costs, USDA home loans are a great option to buy a home with little upfront costs and low interest rates.

Want to stay updated on Real Estate & Mortgage industry, follow us on Facebook, Twitter & LinkedIn. Or if you need any advice regarding home loans, feel free to contact All Western Mortgage Lending at 702-850-2790.

3 Signs You are a Perfect Candidate for Veterans Home Loans

The VA Loans offer a tirade of benefits, like zero down payment, limits on closing costs and no private mortgage insurance (PMI). The VA backed loans are part of a benefits program, which has helped millions of army veterans and military persons buy their dream home since World War II.

But, these veteran loans are not the right option for every military personnel. Here are a few boxes that you need to check to know if you are the right candidate for a VA loan. 

Eligibility: You need to meet certain requirements to be eligible for a VA loan. In most of the cases you are eligible if you meet any of the following conditions:

• A  minimum of 90 consecutive days active duty during wartime
• A minimum of 181 consecutive days active duty during peacetime 
• A minimum of 6 year service in the National Guard or Reserves

You Don’t Have Money for Down Payment: The best benefit of VA loans is that you don’t have to put any money down to buy a home. VA backed mortgages offer 100% financing as compared to conventional or FHA loans where you have to put up at least 5% or 3.5% of the purchase price as down payment respectively. Not to mention the burden of that pesky PMI. You also don’t have to worry about that with VA loans. 

You’re Buying Your Primary Residence: You can’t use VA loans for buying a vacation home or an investment property where you won’t be living. However, you can buy absolutely any type of apartment or a condo with VA loans if you are planning to live in it. 

Want to know more about VA loans or need help in securing one? Call All Western Mortgage on 702-850-2790 or click here.

Veteran Loan for Disabled Veterans

Did you know that as a differently abled veteran, you are eligible for special considerations and benefits while applying for VA loans? These special benefits, on VA loans for differently abled veterans, can save you a lot of more money. Let us enlighten you about these, so you can utilize VA home loans up to their full potential.

The Funding Fee Is Waived Off: If you are currently receiving disability benefits and haven’t closed on your home loan yet, you don’t have to pay your funding fee as it gets waived off. However, if you have closed on your VA loan before receiving disability benefits, then also there is no need to worry as you get a refund for the funding fee. 

Grants for Specially Adapted Housing: Apart from getting the funding fee waived off and getting the home loan with 100% finance, a disabled veteran can also get the Specially Adapted Housing Grant (SAH) and the Special Housing Adaptation Grant (SHA) to install necessary accessibility modifications in his/her home. 

Tax Credits and Exemptions: After using your veteran loans’ benefits to buy a house, you also become eligible for some extremely useful tax credits and exemptions. The Disabled Veterans Property Tax Exemption can substantially reduce the amount that you pay in taxes. But, the amount varies by state, so check with your local VA office to know more about your state-specific benefit. Or you can also call All Western Mortgage on 702-850-2790 for this information. 

For more info about the benefits of VA loans, feel free to call All Western Mortgage on 702-850-2790 or visit http://www.awmlending.com/loans-VA.php

Property Requirements for Veteran Loans

If you are planning to apply for a VA mortgage, the department of Veteran Affairs has some minimum property requirements that need to be met first. Home hunters applying for VA loans won’t be approved if their chosen property doesn’t meet the basic minimum requirements set by the department of veteran affairs.

According to the rules set by VA, the property must be first evaluated by a VA appraiser and must be free from hazards and defects. Any issue that could affect the health of the future owners must be addressed before the loan gets passed.

Here are some minimum property requirements that need to be met before veteran loans can be approved:

Foundation: Foundation problems are a deciding factor for considering minimum property requirements. Any home with foundation problems automatically gets rejected for a loan by the VA.

Dampness: Excessive dampness in the home is another issue that poses a potential structural hazard and won’t pass the guidelines of VA.

Drainage: VA rules explicitly state that in order to get approved for a VA backed mortgage, a home must be properly graded in a manner that it has, “positive, rapid drainage away from the perimeter walls of the dwelling, and prevents pooling of water on the site.”

These factors directly affect the health and safety of the future occupants of the home along with the future value of the property. Any issue related to these factors might need to be addressed immediately if you want to get approved for a VA loan.

For more info about VA loans or for applying for VA loans, call All Western Mortgage on 702-850-2790 today or visit http://www.awmlending.com/loans-VA.php