Getting a Lehigh Valley Mortgage For A Home
For a Lehigh Valley Home Buyer looking to purchase a home there are various types of Mortgages available.
The First Step to purchasing a Lehigh Valley Home is getting a Pre-Approval for a Mortgage.
Each of the mortgage types listed below depend on credit scores, debt ratios and potentially home location (USDA) and Military Service (VA).
Conventional Mortgage – typically requires 3%, 5%, 10%, 15% or 20% of the purchase price as the down payment. Sellers assist for help with closing costs can be 3% or 6% (it various depending on how much down payment).
FHA Mortgage – a great mortgage for first time home buyers in the Lehigh Valley. The down payment is 3.5% of the purchase price. The home buyer must have the 3.5% or is being gifted it from a family member. Proof of gift will be required. Sellers assist up to 6% is allowed. Debt ratios tend to be more relaxed then with a conventional mortgage.
USDA or Rural Mortgage – this mortgage is provided by the United States Department of Agriculture and loans 100% of the purchase price. No down payment is needed. It is given to promote home purchases in rural areas. The Lehigh Valley Home Buyer and the home itself must qualify for the loan. The home needs to be located in what USDA considers a Rural area. 6% sellers assist is allowed to cover closing costs.
VA Mortgage – available to active duty military and veterans this loan provides up to 100% of the purchase price. For those who serve or have served the country this is a great loan. Sellers assist is allowed to enable the home buyer to purchase a home with little or no money. A Certificate of Eligibility is required from the VA (Veterans Administration) to qualify for this loan.
Before proceeding with looking at and purchasing a Lehigh Valley Home you should know your numbers and feel comfortable about going forward.