Alexandria VA Home Loans
Alexandria VA is located just miles outside of Washington DC, sitting along the Potomac River. Home buyers in the Alexandria area have a wealth of mortgage products to choose from, so it's important they work with an experienced professional when deciding which loan is right for them. Conventional loans, VA, Jumbo, FHA, portfolio, alternative income, and rehab loans are just some of the home loan options available to those in the Alexandria area.
There are a wide variety of home prices throughout Alexandria, from sub-$100,000 homes to homes selling for several million dollars, so the area offers something for everyone. In 2016, the average sales price was $493,573. While that's high when comparing numbers nationwide, the low sales price for 2016 was $54,900. On the other end of the spectrum, $4,685,000 was the price of the most expensive Alexandria home sold in 2016.
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Alexandria VA FHA Loans
FHA loans in Alexandria require a minimum 3.5% down payment, which can come in the from of a gift from an acceptable donor. FHA also allows up to 6% sellers assistance toward closing costs, so while home values may be higher than the national median, Alexandria home buyers can still purchase a new home without breaking the bank. Even better, since Alexandria is considered a high cost area, HUD allows FHA borrowers to finance up to $636,150 in 2017.
FHA loans are very borrower friendly, especially for low-moderate income buyers. Credit requirements are more forgiving than conventional loans, and rates are considerably lower than conventional counterparts.
The one downside to FHA loans is that with less than a 10% down payment, the PMI is attached to the mortgage loan for the life of the loan (until the home is sold or a refinance takes place). For this reason, FHA loans are great first loans, but not the best permanent loans with less than 10% down.
Alexandria VA Conventional Loans
Conventional loans are another great source of financing for Alexandria home buyers & owners. Conventional loans require 3% down (for first time buyers, 5% for everyone else), along with low rates, and affordable PMI rates for folks with good credit (conventional PMI is not as forgiving as FHA for lower FICO scores). With 20% or more down payment, borrowers do not need to have PMI at all with a conventional loan.
In Alexandria $636,150 is the maximum conventional loan amount available in 2017. Like FHA, sellers assistance is allowed to help buyers with closing costs, but with less than 10% down, a seller may only contribute up to 3% of the purchase price. With 10% or more down, sellers may contribute up to 6%.
Conventional pricing ranges from wonderful to high, as it works on a sliding scale - the better the credit and higher the down payment, the better the loan terms. Rates get worse as down payment & FICO scores decrease, which is why it's such a good idea to get preapproved and talk with a loan officer at least a few months before buying.
Other Loan Programs
Alexandria VA VA Loans are available with a 0% down payment requirement to qualified buyers. With such close proximity to DC and a large military presence, VA loans are a wonderful resource for the area, as for many people they are the best loans out there with the most attractive terms - low rates, little to no money out of pocket required to buy, and low or no mortgage insurance requirements, depending on details of military service.
Jumbo loans in Alexandria, VA are loans that exceed the conventional, FHA, or VA loan limits. In Alexandria, financing up to $5 million is available for higher priced properties, and many jumbo programs require only 10% down, with some very attractive rates and terms.
Portfolio "Niche" products work to fit unique circumstances which prevent buyers from accessing the loan products discussed above. Bank statement loans, asset depletion (using assets for income), and loans for foreign nationals all fall into this bucket. Many of these loans can be done with conventional or jumbo loan amounts as well, making them a resource for everyone to use. Typically, rates are a big higher and down payment requirements slightly greater, but these products help more people into homes that otherwise would be forced to rent.
If you have any questions on any of these loan products or others, you can ask an expert here.
Alexandria, VA offers a wonderful lifestyle and plenty of opportunity for local homeowners to enjoy a high quality of life. If you're considering buying a home in Alexandria or the surrounding areas, or would like more area-specific information, I would highly recommend Amanda Davidson and her team. Amanda and her team know the local marketplace, and focus their expertise on the fine details of buying and selling real estate to ensure their clients have a one of a kind experience that other Realtors aren't offering.
If you have any questions about an Alexandria, VA mortgage, call 484.680.4852 or ask an expert here. We specialize in residential home purchase loans and refinances.