Government Loans find a mortgage broker

FHA loans are government insured loans that pay the balance of the mortgage if the loan goes into default.  This is used typically by first time home buyers due to its ease of process and better interest rates, however, mortgage insurance for FHA is higher than conventional loans.

FHA Loans have easier qualifying parameters so this loan is typically used by the first time home buyer or those buyers with less than perfect credit.  ​

• 2022 loan limit is $420,680.

• Debt to income ratios are typically higher than conventional loans and can vary by lender.

• Required down payment is 3.5% or more.

• Monthly mortgage insurance is required regardless of the down payment amount.

• Upfront mortgage insurance is also required and is financed into the loan.
  
• Lower FICO scores can still qualify and vary by lender. 

FHA loans require two years out from the chapter 7 discharge date. You can qualify while in a chapter 13 bankruptcy if:

• You have one year satisfactory payout period on the chapter 13 bankruptcy.
• Written permission from the bankruptcy court.

VA loans are for service members from both regular armed services and national guard.  See if you qualify!!

You must be a veteran in good standing and must be able to produce a DD214 and Certificate of Eligibility.  

VA entitlement is the dollar amount the VA will repay a lender if you default, or fail to repay your mortgage. If you meet minimum loan requirements, most lenders will loan you up to four times the amount of your basic entitlement without requiring a down payment.  

You may be eligible for VA entitlement if you meet the following minimum service requirements:  

-  90 consecutive days during wartime 

-  181 days during peacetime 

-   More than six years of service in the National Guard or Reserve  

Additionally, spouses of veterans who died in the line of duty or from a service-connected disability may meet the eligibility requirements.  

In regard to bankruptcy, there is a 24 month waiting period from the discharge date. VA guidelines on chapter 13 bankruptcies are similar to FHA loans. 

• One year satisfactory payout period on the chapter 13 bankruptcy.
• Written permission from the bankruptcy court.

USDA loans are back by government funding and are used for rural areas, however, you'd be surprised what is considered rural.  It's a good idea to check the USDA map when searching for a home.  If you meet the income requirements, you just might be eligible for a USDA loan.

​​USDA Home Loans are particularly favorable to those living in rural or low-income areas. USDA Loans offer $0 money down, lenient eligibility requirements and competitive interest rates - due to the loan being guaranteed by the USDA.  USDA mortgages stand alone as the only mainstream zero money down program available to borrowers that have not served in the military. Eligible borrowers will be hard pressed to find a home loan program that offers more favorable terms.  

USDA loans require a three year waiting period for a chapter 7 bankruptcy. They do not require a credit exception for plans completed 12 months or greater. 

Reverse Mortgages are FHA insured loans.  They work in the opposite of a forward mortgage.  In a forward mortgage, you pay the principal and interest in a monthly payment and the equity in your home goes up.  In a Reverse Mortgage, the principal and interest are paid from the equity in your home and the equity goes down every  month.

Developed in the Reagan era, there have been many safe guards placed on Reverse Mortgages over the years.  They are safe for retirees.  THE BANK IS NOT ON TITLE AND DOES NOT OWN YOUR HOME - EVER!  They don't want to. 

Call your mortgage professional at Multiline Mortgage Services.  We'll walk you through the process.