by SupremeLending | Mar 1, 2024
The men and women who have served in America’s Armed Forces have sacrificed so much to protect our freedom and communities, including time away from their families. There’s no profession more deserving of having a home to call their own. Supreme Lending is honored to provide opportunities to help Veterans and active military personnel achieve their dreams of homeownership through affordable mortgage options, including VA loans that can offer 100% financing. Let’s dive into the benefits and eligibility of VA loan programs.
Guaranteed by the U.S. Department of Veterans Affairs, VA loans are designed to help those who have served in the military and their eligible surviving spouses obtain homeownership with more flexible and favorable terms.
VA Loan Benefits
Two of the biggest benefits of VA loans are the no down payment or mortgage insurance premium requirements—making homeownership more accessible for those who may not qualify for a traditional loan. Other unique VA loan benefits and features include:
- Lower origination fees, appraisal fees, and closing costs.
- Purchase and refinance for primary homes.
- No prepayment penalties.
- Fixed- and adjustable-rate loan options available.
- Variety of eligible property types (single-family, townhomes, VA-approved condos, etc.).
- Available for qualified first-time and repeat homebuyers.
- 580 minimum credit score; 620 minimum credit score for loan amounts more than $ 766,550.
- At least 41% Debt-to-Income (DTI) ratio.
- VA non-allowable fees can be paid by seller, up to 4% of the loan amount.
- Two year waiting period after foreclosure or bankruptcy after discharged.
- Some states may offer additional options for extra affordability.
VA Loan Eligibility
A requirement of VA loans is that the homeowner lives in the home as their primary residence. A valid Certificate of Eligibility (COE) must be presented at the time of application, which includes military eligibility such as length of service or service commitment, duty status, and character of service.
VA Funding Fee
While there is no down payment requirement, VA loans do require a one-time funding fee to cover administrative or processing costs. The fee is 2.15% for first-time use of the program with zero down payment, still much lower than a traditional down payment! Additionally, the funding fee decreases to 1.5% with 5% or more down payment and to 1.25% with more than 10% down payment.
VA Loan Refinancing
Veterans Affairs also offers options for refinancing. A VA streamline refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), could be a great option for military homeowners looking to potentially reduce their interest rate and monthly payments of a current VA loan. A VA cash-out refinance allows borrowers to leverage the equity they’ve built in their home and could help homeowners fund renovations or other large expenses.
For more information on VA loans and other mortgage options, reach out to your local Supreme Lending Loan Officer or contact us today.
by SupremeLending | Feb 28, 2024
If you’re looking for a home with acreage in the country, to build the homestead of your dreams outside the city, or to embrace nature’s beauty of rural living, a USDA loan could be a great mortgage option with it’s no down payment requirement and flexible guidelines.
The U.S. Department of Agriculture (USDA) guarantees the loan for homebuyers in rural areas, including designated small towns and eligible suburbs outside of large cities. USDA loans help encourage rural development across America by offering affordable home financing to those with lower to moderate income. USDA loans may be one of the least-known government mortgage programs available, so let’s go over the loan features and potential benefits.
Why choose a USDA loan? If you’re located in an eligible area, there are several features USDA loans:
- No down payment requirement.
- Lower closing costs and interest rates.
- 100% financing with a one-time guarantee fee that can be rolled into the loan.
- Lower credit score minimums.
- Gift funds and grants permitted from family or government assistance agencies.
- Eligible properties include single-family homes, new construction, modular homes, planned unit developments (PUDs), and eligible condominiums.
- Mortgage insurance is required.
- Borrower’s income can’t exceed the USDA Rural Development limits for the area.
You can check to see if a property’s location is eligible for a rural development loan on the USDA’s website using the property eligibility maps and income limit calculator.
Ready to say goodbye to city life and hello to wide open spaces? Realize your dream of rural living with the possibility of a USDA loan.
For more mortgage information, reach out to your local Supreme Lending branch today.
by SupremeLending | Feb 21, 2024
New year, new décor? Interior design can turn a house into a home with the combination of modern or traditional flare and personal style. Whether you’re planning to sell your current home in 2024 and need to attract potential buyers with stage-worthy features or looking to renovate or elevate your space, here are a few interior design trends to enhance the appeal of your home and leave a lasting impression.
Neutral Elegance
Using a neutral color palette creates a timeless and refined look. In keeping up with 2024 interior trends, design expert Ashely Childers suggests embracing natural colors and textures to foster a warm, clean, and sophisticated environment. Neutral tones and materials also show potential buyers a blank canvas to envision their own style in the space.
Nature’s Charm
Bringing nature indoors can not only elevate the space, but also has been known to enhance people’s energy, creativity, and mood. Consider adding statement greenery and plants, natural materials like wood or stone, and large windows that let in ample natural light.
Tech Chic
Incorporating modern smart home technology offers convenient features, such as controlling the thermostat with a mobile device or automating room lighting, but it also helps create a modern, elevated environment. Replace any old or outdated technology that may be visually unappealing and opt for the latest line of home electronics and appliances.
Bold Move
While neutrals are essential, that doesn’t mean you have to shy away from making bold, playful statements. Introduce pops of color, vibrant patterns, rich textures, or eclectic decor pieces to add personality to a room. While pastels have been popular, designers featured in Architectural Digest predict that colors in 2024 will be taken up a notch with more vibrant, saturated hues, such as deep blues, browns, burgundy, and plum. Bold moves can help enrich a space and create a memorable and visually striking impression.
While you visualize your home’s interior design or staging, Supreme Lending is here to help with your home financing needs. Contact us to learn about our wide variety of mortgage options and refinancing.
by SupremeLending | Feb 21, 2024
Condominiums—commonly known as condos—are a great option for homebuyers looking for less maintenance, urban settings, lock-and-leave lifestyle, and community amenities. But the differences between financing condos and single-family homes may bring more complexity to the condo loan process.
Condos are privately-owned units within a building where residents have ownership of their interior space and share ownership of common areas and exterior space (i.e., pool, roof, landscaping). Condo buildings are typically managed by a homeowner’s association (HOA). Upkeep of the common areas can be funded through monthly HOA fees, which are in addition to a resident’s mortgage payment.
The condo loan process typically considers several more factors than the process for a single-family home. Down payment minimums and interest rates may be higher for condo loans too. When financing a condo, lenders will not only look at the buyer’s financial history but may also evaluate the condo community’s condition and finances.
Several types of loans have requirements that condo associations must meet for a lender to be able to provide financing, which identify the condo as “warrantable.” If a condo property doesn’t follow specified guidelines, lenders, including Supreme Lending, can offer condo loan options for non-warrantable properties if eligible. Condo loan options include Conventional, FHA, VA, and new construction.
While the condo loan process may be more complex, Supreme Lending has an experienced in-house Project Review Office team dedicated to helping speed up the process by gathering and processing required documents for condo loans for a smooth homebuying experience.
Are you looking to finance a condo now or in the future? Contact your local Supreme Lending branch to get started.
by SupremeLending | Feb 20, 2024
When it comes to buying a home, which could be one of the biggest investments you make, it’s important to understand your financing options. While a Conventional loan is more traditional, FHA loans have seen a rise in popularity due to more flexible guidelines. Let’s dive into a few of the FHA loan benefits and features for homebuyers to consider when choosing a mortgage.
What is an FHA loan?
The Federal Housing Administration (FHA) knows the tremendous value homeownership can bring to people’s lives and communities, which is why it was founded in 1934 to boost home sales and the economy. The government organization offers special mortgage insurance to lenders as an option to help more people who may not qualify for a Conventional or other type of home loan, qualify through an FHA loan.
When applying for a home loan, an FHA loan may be a practical option, especially if you:
- Are a first-time homebuyer.
- Have a lower credit score.
- Want a lower down payment.
- Are refinancing a high-cost mortgage.
FHA loan benefits and features include:
- Low down payment requirements with a minimum of 3.5%. Mortgage insurance is required.
- Credit scores as low as 580 may be accepted.
- Gift funds can be used for 100% of the down payment or closing costs.
- Fixed-rate and adjustable-rate mortgage options are available.
- Flexible qualification guidelines.
Now you might be asking, what properties are eligible for FHA loans? In addition to single family homes, FHA loans could also finance other qualified properties, such as 2- to 4-unit complexes and condos. Properties with an FHA loan will require an FHA appraisal to ensure the living space is safe and meets proper standards.
FHA loans could be a great option as a steppingstone into homeownership. Could these FHA loan benefits match your mortgage needs?
If you’re ready to see if an FHA loan or other home loan program is right for you, Supreme Lending is ready to help. Contact us to get started today!
