Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program.
Securing A Low Mortgage Rate Can Be Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By locking in a low interest rate, you can set yourself up to build wealth faster.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you.
What You Need to Know About Home Financing
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some programs it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
As with all financial dealings, settling on costs that each party can live with is key to a sense of success...Alyssa Danese with Prospect Home Finance worked patiently, professionally, and personably with us to obtain a great refinance rate with reasonableclosing expenses. We should have taken the time to negotiate the underwriting fees a bit, but overall, we were pleased with our final results. Each step of the process was dictated by our need for information and time to absorb the data and arrive at our decisions. For our first online mortgage experience, Prospect Home Finance offered a favorable experience.- Cynthia Weaver.
They closed on my loan very quickly, and with ease. Process was very streamlined. I highly recommend prospect home finance. Brasihana and Shiv are both fantastic loan officers and will be there to help with any of your mortgage finance needs.- Alexander DeRyckere.
I recently closed on a refinancing with Prospect. Shiv Samtani, my loan officer, was a pleasure to work with. From the very first day since I contacted him, he was always on top of the entire process, walking me through the details, answering my questions and responding promptly to any question that I would have. I was able to close quickly because of his proactiveness. Overall, I was very satisfied with the service provided. I would recommend Prospect Home Finance and working with Shiv.- Prithvi Roy Chowdhury.
Prospect Home Finance was amazing. I was trying to refinance with my current leader and it was an ongoing uploading of documents for over 7 months. Shiv was great and we got it done in 3 week! So pleased with them - I just wish I would have gone with them first!- Ron Scheibel.
Worked with Samuel Sheldon to refinance our mortgage. He made the process super easy and low stress. I highly recommend both him and Prospect.- Becky Welsch.
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
And so much more! All funded by your single, convenient FHA 203(k) Renovation loan.
And start planning your renovations now!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
Popular Options Available To Make Your Home Finance Dreams Come True!
A 15 year loan generally has lower interest rates, which means a lower overall total cost. These do come with higher monthly payments, but save thousands in interest with the shorter loan life. This is a good option for borrowers to build equity faster at a fixed rate and are looking to spend less over the life of the loan.
A 30 year mortgage has lower monthly payments, and is easier to qualify for than 15 year loans. Interest rates are typically slightly higher and it can take longer to build equity, but borrowers enjoy the flexibility to make higher payments (we don’t have prepayment penalties!). 30 year loans are the most common type of mortgage and they’re a great option for borrowers who want a fixed-rate and the lowest overall monthly payment.
VA loans offer some of the best rates, and are only available to eligible service members who intend to live in the home. There is no minimum down payment, no private mortgage insurance, and the debt-to-income requirements are less strict than other loans. These loans are also praised for their streamlined refinance process (including no appraisal on most programs!). Overall, VA loans are a great deal for those who qualify!
FHA loans have easier credit requirements and require smaller down payments. They’re an excellent option for 1st time home buyers and for those with higher debt-to-income ratios. FHA loan programs do require monthly private mortgage insurance paid to the lender.
Adjustable Rate Mortgages aren’t for everyone, but they can be a good option if you’re planning to sell in the near future. ARMs traditionally have lower initial interest rates that are fixed for the first 1-7 years (depending on the loan). A borrower can take advantage of these low rates and avoid risk of a payment spike, if they refinance or sell before the fixed-rate period is over.
What should I do next?
Simple. Click any of our buttons above to lock in a super low rate. Don’t worry about a low credit score, either—you’ll find that there are plenty of programs out there that can help.