Over the past couple of months more and more people are turning to FHA and VA Loans for their mortgage financing needs. With the sub-prime market now non existent and 100% financing pretty much a thing of the past we are getting flooded with Government loan applications. The increase in Govt. loan applications has reached over 70% in the past 3 months!
On the good news side: rates are competitive, MI reasonable in FHA Loans, NO Monthly MI on VA Loans and credit does not have to be perfect. Both FHA and VA Loans will allow up to 6% towards closing costs and pre-paids from the sellers, FHA id typically a 97% LTV program but can go up to 100% financing with a qualified DAP program, VA loans can go to 100% financing for qualified borrowers.
The bad news side: Because the market in general has been flooded with VA and FHA loan applications over the past few months there are not enough qualified Government underwriters to keep up with the work load, this week we were at 11 days turn around time which has just been reduced to 7 days today with the addition of 5 new Govt. underwriters added to our underwriting team. So the bad news is not so bad afterall.
The bottom line here is that FHA Loans and VA Loans are great loan programs for home buyers, contact Benchmark Mortgage Connecticut for more information or for a free pre-approval.
860-283-0000 or toll free in Connecticut 1-866-334-LOAN(5626)
Comments (1)Subscribe to CommentsComment