Mortgage rates continue to stay at historical lows. So far in 2013, we have seen a huge jump in purchase transactions. So it’s a good time to review the different options buyers have in today’s market.
By far the most beneficial loan program is the Veteran’s mortgage or the VA loan. The VA loan is the only true 100% purchase money mortgage today, meaning zero down for the veteran and it does not require mortgage insurance.
Then there’s the FHA loan which only requires 3.5% down of the purchase price but it does require monthly mortgage Insurance .
And of course there is the conventional mortgage loan which now only requires 3% down but there are credit score thresholds and this too requires mortgage insurance. The benefit of the conventional loan over an FHA loan is that the loan amount can go up to $417,000 while FHA is limited to just over $271,000. The VA mortgage will go to 417,000 with zero down.
Because the real estate market is very active, buyers need to act fast. Often they are up against a growing number of other buyers jumping into the market. So it’s imperative that buyers start the process with a mortgage lender like Indigo Mortgage so they are pre-qualified. Realtors today will not even begin to show properties to perspective buyers unless they have been pre-qualified. Indigo Mortgage will do the pre-qualification free of charge and in just a few minutes. This is a two-fold benefit as it shows sellers you are a serious buyer and it prepares the buyer to know exactly what the loan and payments will look like at a given purchase price.
INDIGO Mortgage (505) 836-5700 Albuquerque's Premier Mortgage Loan Provider! We have five loan divisions to serve you. Select from Residential Loans, Commercial Loans, VA loans, Reverse Mortgage Loans or Construction Loans.
