Financing

There are many Loan Options for Financing your Mortgage.

The first step, even before you start looking for a home, is to consult with a Mortgage Broker, Bank or Credit Union to see what the best mortgage loan option is for you. They can review your income and qualifications and listen to your desires and recommend an option for you.

What type of loan you use, is all dependent upon your income, debt, savings, credit scores, type of property and what you are able to (or want to) afford each month toward your mortgage payment and additional personal expenses. And if your lender finds that you are not quite ready to qualify to purchase, they can help guide you on repairing your credit, erasing certain debts that might affect your debt to income ratios, and put you on the right path to buying a home in the near future.

And once you are Pre-Qualified for a Home Loan – you are ready to search for your new home.. You’ll know the right price range and your lender will be ready to provide a Pre-Qualification Letter to your Buyer Agent to submit with any Offer to Purchase a home.

Common Types of Mortgage Loans

  • USDA/Rural Development – Used for primary residence purchases – a great option for First Time Home Buyers or Buyers looking for a 0% down option. You must qualify based on Income levels and certain areas are excluded from qualifying. Talk to your lender about the Guaranteed RD Loan Program.
  • FHA/FHA 203K -Used for primary residence purchases for single family or multi-units (of up to 4 units). 3.5% down payment. Talk to your lender about this affordable option.
  • VA Loans – Are you a qualifying veteran? Contact the VA about obtaining your Eligibility Certificate and talk to your lender about these no money down loans for veterans. They can help facilitate the process for you.
  • Maine State Housing -Used for primary residences. If you have not owned a home in the last 3 years and have a qualifying income this may be an option. Talk to your lender.
  • Fannie Mae -“NEW” 3% Down Primary Residence Loan – 97% LTV, -a federally backed loan for primary residences from Fannie Mae  This might just be the next big thing in home loans. First time buyers and other loan products available. Talk to your lender.
  • Conventional Loans – Used for loans for primary residences, second homes, investment properties. Typically 20% down payment. Other smaller downpayment options such as 5%, 10% down options can sometimes be found – known as Portfolio Loans – through local banks and private lenders.   See what options a lender can find for you.
  • New Construction – If you already own your land and want to build, this is likely the option for you.  But if you are just looking to buy a new house or find a builder who can build your dream home, there might be other options. At The Maine Real Estate Network we have builders who can purchase the lot, build your home, and let you finance with other loan types (at more affordable interest rates).

Visit our Recommended Lenders page, to get started on your path to home ownership or call me at 207-741-2006 or email david@maineinfo.net and let me help you find the right lender for you.

David Karl Roberts/Associate Broker
The Maine Real Estate Network