FHA LOAN

A FHA loan product requires the buyer to invest minimum of 3% into the transaction. The mimimum down payment is 2.25% in the State of Texas and the remaining .75% can be met in closing costs. The applicant can qualify for this loan more easily than any other type of loan product. FHA loans are not credit-score driven. Any account that has been paid late in the past 12 months can hurt the chances for loan approval. Applicants who do not have credit scores are eligible using alternative credit, such as rent, electric, water, gas, cable bills, insurance premiums, etc. The sales price of the home must not exceed $160,176.00 for 2004. The seller of the home is allowed to pay up to 6% of the sales price of the home for closing costs on behalf of the buyer. A family member, friend, or employer is allowed to gift the buyer funds for their down payment on a FHA Loan. There is also a Down Payment Assistance Program that is available to buyers to access if they do not have the funds for the down payment. The City of Wichita Falls "First Time Homebuyer Program" also makes funds available to help prospective buyers purchase a home. Contact any of the loan officers at Strategic Mortgage to learn more about these gift programs.

VA LOANS

All active, former, and retired military personnel are eligible for a VA Loan. This loan product is guaranteed by the federal government. Each applicant has a funding fee ranging from 2.2% to 3.3% in lieu of mortgage insurance. The funding fee can be financed by the vet by adding the amount to the loan, paid in cash, or paid by the seller as part of the closing costs. A VA loan has no down payment and the seller can pay all of the vet's closing costs. VA loans have highly competitive rates. Call one of our loan officers for more information about a VA loan.

CONVENTIONAL LOANS

Conventional loan products vary immensely. They range from zero down payment products to interest only option products. Conventional loans are credit score driven and underwriting guidelines are much stricter than government loans. Seller's are allowed to pay up to 3% of the buyer's closing costs on a Conventional loan. Monthly mortgage insurance is required on all conventional loans when less than 20% is paid toward the down payment of a home. A newer product is the 100% Conventional loan that requires no down payment from the buyer, only at least $500 of their own money must be included in the transaction in the way of closing costs. Call one of our loan officers to inquire about this and other great conventional loan products.

Niche Loans

Applicants with credit blemishes may still be eligible for a home loan using products with different underwriting guidelines. Many of these products accept lower credit scores and do not require collections over 24 months old to be paid. The interest rate is generally higher than a conventional loan, but for applicants trying to buy a home with serious credit issues this is an alternative. Contact one of our loan officers for more information.