FINANCING YOUR PURCHASE
Most buyer will utilize some sort of financing when purchasing real estate. Below is a brief description of the types of loans that may be available to you.
There are two types of conventional loans; conforming and non-conforming. Conforming loans follow the terms and guidelines set forth by Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac are stockholder owned corporations that purchase conforming loans from mortgage lending institutions and then packages those loans as securities and sell them on the open market to investors.
FHA loans are a great option for buyers. The Federal Housing Administration (FHA), which is part of the US Department of Housing and Urban Development can offer buyers lower down payments, lower closing costs and easier credit qualifying. You may be able to purchase a home with as little at 3.5% down. Click here to learn more about FHA.
Rural Development provides loans, with no down payment, to low and very-low income applicants in rural communities to build, purchase, or repair a home. The Craig office services Grand County and the Kremmling area. Click here to learn more about USDA.
VA loans are guaranteed by the US Department of Veterans Affairs and are only available to Veterans of the United States Military. The VA offers Veterans and Service persons favorable loan terms, low to no down payment and easier credit qualifying. The US Department of Veterans Affairs does not make the loan, it guarantees the loans made by lenders. You will need to be qualified and eligible for a VA loan. This can be done through the US Department of Veterans Affairs. Click here to learn more about VA loans.
Some sellers may choose to offer their own financing to buyers. Not every seller can or chooses to go with this type of financing, however, it can be a nice option for both buyer and seller. When the seller "carries" the note, they are essentially acting as the bank. Monthly mortgage payments are made to the seller and in most seller financing situations, a larger down payment will be requested of the buyer to cover the sellers closing costs.