The Mortgage Process
Mortgage lending guidelines are constantly changing. At Helping Hands, our licensed mortgage loan professionals will make sure you have current and accurate information while educating you through the process, making you a more successful homeowner.
“Our mission is to better educate homeowners and, when appropriate, arrange the financing.”
Our goal is for you to obtain the best mortgage program for your situation. For purchase transactions, the first step to achieving your housing goal is to get a better understanding of how much you can afford.
Common Questions and Homebuying Resources
Your Mortgage Calculator
What Can You Expect?
Here is a “play-by-play” of how a typical mortgage application and approval process works.
Our Helpful Purchase Mortgage Document Checklist
To better serve you and to give you more accurate information, below are the typical documents that we would like to review:
Our team has closed thousands of purchases. The key to a smooth transaction is organization and communication. We help each of our clients to be well prepared, to gather the necessary documentation, and to understand the mortgage application process.
Please contact us to better understand the buying mortgage process.
Down Payment Requirements
Down payment amounts can vary based on many factors from loan programs to credit qualifications. In today’s market a 5% to 20% down payment is typical. But there are options to purchase a home with a lower down payment. Some mortgage programs, such as a VA loan for military members, are available with no down payment. USDA loans also allow for a no down payment option. FHA loans have only a 3.5% down payment which may come from a gift. There is also a new loan program that allows the lender to provide towards the down payment.
The best answer to how much money down is it depends are your goals and financial situation. Please contact us to better understand what options are available for you.
What is the Right Home Loan for Me?
No two homes are alike, and no two homebuyers or refinancing scenarios are the same. Our mission is to provide information and education about the myriad of available home loan programs. And, when appropriate, we can arrange the mortgage that fits your goals and budget. Your choice of mortgage financing will make a difference in your monthly housing payments.
Not sure you’ll qualify? Have you been denied? Don’t despair! Contact us and we’ll do our best to implement a plan that will meet your housing needs.
Veterans Loan
For certain qualified home buyers, a VA (Veterans Administration) backed loan can be a great way to afford to purchase or refinance a home. Helping Hands Community Partners is honored and dedicated to helping our veterans who have served for our country. Let us guide you through the process.
VA Mortgage Advantages
Veterans of United States military service, active duty military, certain reservists and National Guard members, and certain surviving spouses may be eligible for a home mortgage program that is backed by the federal government through the Veterans Administration (VA). Helping Hands is approved to educate and, when appropriate, arrange VA home loan financing.
Some of the advantages offered by a VA home loan include:
- No down payment (so long as the sale price does not exceed the appraised value)
- No annual mortgage insurance required
- Closing costs may be paid by the seller
- No penalty for early payoff of the loan
- You do not have to be a first-time homebuyer
- You can re-use the VA benefit for future mortgages
- VA-backed loans are assumable so long as the person assuming the loan qualifies
- No up-front VA funding fee for disabled veterans
FHA Loan
For certain qualified home buyers, an FHA (Federal Home Administration) backed loan can be a great way to afford to purchase or refinance a home. Helping Hands Community Partners has experienced licensed loan officers who will be happy to explain how an FHA loan works.
The government insures FHA loans to allow a greater number of homeowners to own or refinance a home of their own. A variety of FHA mortgage programs are offered to fit your needs. There are several different types of FHA loans. We can analyze your current lifestyle and financial situation and help you determine which is the best choice for your needs.
Some of the advantages offered by a FHA home loan include:
- Low down payment of 3.5 % (so long as the sale price does not exceed the appraised value)
- Closing costs may be paid by the seller
- No penalty for early payoff of the loan
- Down payment and settlement charges may come from a gift
- Lower credit scores are generally accepted compared to conventional loans
- Higher debt-to-income ratios are generally accepted compared to conventional loans
- You do not have to be a first-time homebuyer
- Non-occupant co-borrowers are allowed
- May purchase up to a 4-unit multifamily with no prior landlord experience with only a 3.5% down payment
- Renovation loans for purchase (with only 3.5% down) or refinancing allowed under the FHA 203(k) streamline and full FHA 203(k) renovation programs
- FHA loans benefit many first-time buyers who have not been able to save money for large down payments such as recent college graduates, and newlyweds
FHA vs. Conventional loan
Conventional mortgage loans conform to Freddie Mac/ Fannie Mae and are not government backed by FHA loans. This makes conventional loans harder to qualify for, but they usually have lower costs.
- A conventional loan may offer a lower interest rate ( all interest rates are currently at record lows)
- Conventional loans do not require Private Mortgage Insurance (PMI) if you put 20% down for down payment. FHA loans require a minimum down payment of 3.5%, that can be in the form of a gift, but does require PMI.
What is PMI?
Your Credit Score
Good-As-Cash loan Pre-Approval
Getting a "Good-As-Cash" loan pre-approval is beneficial in today's competitive housing market.