When we are in the search for a new home, apart from a preferred location and the number of bedrooms and baths we need, it is important to know the financing options available for us. Besides the multiple offers and low interest rates in the mortgage market, selecting a financing alternative that best suits our needs forms part of the learning process you should go through while applying for a mortgage loan and something we’ll gladly help you with.
For example, FHA loans offer great benefits like affordable mortgage insurance. Also, if you are purchasing a property that will be used as your home, you will be able to combine your financing with government incentives or subsidies; no cash reserve is required and there is no ceiling on assets. Your income is analyzed with no pre-established upper limit in order to qualify, and your tax returns for the previous two years are used to ascertain that your income is adequate and stable. On the other hand, in case a co-signer is needed in the purchase, the latter is not required to reside in the property as well.
Among the requirements in FHA loans, the potential client must submit evidence of his assets such as checking and savings accounts, bonds, stock, mutual funds, and dividends, among others. There is no upper limit to the assets submitted, provided these are duly evidenced. This will guarantee a better evaluation. One or more properties may be used as collateral for existing or new properties, condominiums, walk-ups, or duplexes. You can rely that a Popular Mortgage expert will be available to provide advice, analyzing your particular case towards a personalized recommendation.
If you are a veteran or a member of the armed forces, there is a financing option specifically designed for you. This alternative allows you to obtain up to 100% financing without mortgage insurance. To qualify, your income is verified. Compared to other types of financing in the market, veterans loans are easier to obtain because the credit standards are more flexible. Monthly payments in this type of loan are usually lower because no mortgage insurance is required. Instead, there is known as a “funding fee” that may be included in the loan in order for the financing to go beyond 100%. There are cases, depending on the veteran’s eligibility, where the funding fee is not necessary because the veteran receives a compensation. Another advantage is that closing costs in a veterans loan are lower compared to those of other loans.
That at the end of the day you keep more money in your wallet is our job, that’s why we are mortgage experts! We will give you advice that will help you select the financing option that best suits your needs. Visit any of our Mortgage Centers around the Island. You may also contact a Popular Mortgage expert at (787) 707-7070 or go to our website at www.popular.com/micasa.