Loan types: Conventional, Jumbo, FHA, VA & Commercial Loans | Agent San Francisco SF real estate

SELECT: Conventional loan, Jumbo Loan, FHA Loan, VA Loan, Commercial Loan

Conventional Loan: Conventional loan is a lender agreement that’s not guaranteed or insured by the federal government under the Veterans Administration (VA) the Federal Housing Administration (FHA), or the Rural Housing Service (RHS) of the U.S. Department of Agriculture. Although a conventional loan is not insured or guaranteed by the government, it can still follow the guidelines of government sponsored enterprises (GSE’s) such as Fannie Mae or Freddie Mac as both Fannie Mae and Freddie Mac are stockholder-owned corporations and are not part of the federal government.  Conventional loans may be “conforming” and “non-conforming”. Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. The 2009 conforming loan limits remain at the limits set in 2006, 2007 and 2008. These guidelines put the maximum price for a first mortgage at $417,000 for a single-family dwelling. If the purchase is made outside of the 48 contiguous United States (in Guam, the Virgin Islands, Hawaii, or Alaska), or the dwelling is for a two-family, three-family, or four-family configuration, larger values apply before the loan is no longer considered a conventional loan.
Nonconforming loans don’t meet Fannie Mae or Freddie Mac qualifications, but that are still considered conventional. Jare one example of a conventional loan that does not meet Fannie Mae or Freddie Mac guidelines. A jumbo loan is a loan with a dollar value above the maximum loan amount established by Fannie or Freddie. Jumbo loans usually have a higher interest rate. * THE LOAN LIMITS ARE SUBJECT TO CHANGE DUE TO CHANGES IN THE ECONOMY AND POLICY.
Conventional loans can be fixed rate mortgages, adjustable, balloon, or hybrid loans. Almost any type of loan that you take, if not issued by a government entity, is considered a conventional loan.

Jumbo Loan: A jumbo mortgage is a home loan with an amount that exceeds conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy mortgages from lenders. There is a loan limit established by these agencies such as $417,000 in most parts of the United States, but is $625,500 in the highest-cost areas and in-between in others. These limits are subject to change with economic conditions.

FHA Loan:  FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.

  • Low down payments
  • Low closing costs
  • Easy credit qualifying

VA loan: The VA loan began in 1944 through the original Servicemen’s Readjustment Act, also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans.

VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

Commercial Loan: commercial loan is a type of loan a business requires for a variety of funding needs. The financing is usually for a short period of time, based on the creditworthiness of the business and the purpose of the loan.  Agent San Francisco SF.

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Agent San Francisco Real Estate SF

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