MORTGAGE INFORMATION FOR HOME BUYERS IN ANNE ARUNDEL COUNTY
Terms and conditions for home loans have changed dramatically in the
past 10 years. No longer do home buyers have to rely on large down payments
to get favorable loan terms. The day of the 100% loan is here. Loans
of 5% down are routine and, with the low interest rates of today, home
buyers know that they can buy more real estate in Anne Arundel County
than ever before.
So many loan instruments are available for home buyers in Anne Arundel
County today. A sampling is below. Conventional loans with rates fixed
for 30 years, 10 years, 7 years, 5 years, 3 years, 1 year and several
combinations of fixed and Adjustable Rate Mortgages (ARMs). Terms may
be for 10 years, 15 years or 30 years or 40 years, with the amortization
of 30 years the most popular.
If you are interested in finding out how much home you are qualified
to buy, we can get a preliminary lender's letter of pre-qualification
for you within 24 hours.
CONVENTIONAL MORTGAGE LOANS FOR ANNE ARUNDEL
COUNTY COUNTY HOME BUYERS
By far the most popular loan type to buy a home in Anne Arundel County
is the Conventional loan. These loans generally follow the Fannie Mae
guidelines. Many of the Fanny Mae guidelines are designed to protect
home buyers. However, many of the guidelines that lenders follow are
designed to protect lenders. The guidelines require that buyers be credit
worthy to reduce the likelihood of default. These loans come in types
that require as little as "0" Zero down payment.
GOVERNMENT INSURED MORTGAGE LOANS IN MONTGOMERY
COUNTY
Federal Housing Administration insured loans (FHA). Home buyers in price
ranges that qualify for FHA loans will benefit from the lower down payment
offered by the FHA insured loan when compared with the Conventional
loan. The qualifying ratios of the FHA loans are higher than Conventional
loans. FHA permits borrowers to devote approximately 30% of their gross
monthly income for housing.
VETERAN ADMINISTRATION GUARANTEED LOANS
These loans are guaranteed by the Department of Veterans Affairs. Only
active duty and military veterans can use this loan. This loan requires
no down payment if the purchase price is at or below the maximum loan
amount permitted. CONTACT US for VA loan
limits. VA loans permit borrowers to devote approximately 30-35% of
their gross monthly income to housing. These loan limits change from
time to time.
JUMBO CONVENTIONAL LOANS
These loans conform to the Fannie Mae guidelines for eligibility, meaning
that, on average, the buyers may devote up to 28%
of their before tax income to housing. These loans generally require
a down payment of at least 5%. In exchange for a slightly higher interest
rate, the lender will lend you money with no down payment and will even
pay your closing costs. The higher interest rates are deductible and
are often a good buy for folks with good income, good credit and little
cash. CONTACT US for more information about
Jumbo or Super Jumbo loans.
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