Details and How They Affect Your Offer
Financing Details in Your Offer
Your offer should also
contain information on which type of mortgage loan you will be receiving (fixed rate or an
adjustable rate mortgage). It is also common practice to also include whether you are obtaining
conventional financing or obtaining a FHA or VA loan.
The FHA insures loans -
FHA-insured mortgages are in high demand because of the
many advantages they hold for homebuyers and refinancers, among them
assumability, low down payments and liberal qualifying ratios. Also, FHA
borrowers do not have to meet maximum income qualifications, as with many
other government programs. Maximum loan amounts, however, are set by region
across the country.
The VA Guarantees Loans. -
As a benefit to veterans, the Department of Veterans
Affairs guarantees repayment of loans made to veterans with no down payment
in most cases and liberal qualifying guidelines. This makes it easy for
veterans to finance their homes.
A Conventional Mortgage loan does not exceed 75% of the lower of either the
purchase price or the appraised value of the property.