An FHA loan is a mortgage covered by the Federal Housing Administration in which borrowers pay mortgage insurance to ensure that the lender is protected should the borrower default on payments. These loans are often more appealing to the general public since there are fewer restrictions placed on the borrower to qualify. Since these loans are monitored by a governmental agency, they can offer loans with minimum down payments of 3.5 percent provided the borrower has a credit score of 580 or higher. The lender must be FHA approved since the FHA does not directly offer loans but rather insurance to protect the lenders. FHA loans incorporate 2 payments: the initial down payments of 1.75 percent of the loan amount and monthly payments that vary based on interest rates and the amount financed. 203k loans are also offered through the FHA by financing the home on the final value after repairs allowing borrowers to use some of the loan to complete any repairs on the house. We estimate a single complex house costing $345,000 in Miami.
ITIN loans, also known as Individual Taxpayer Identification Number loans, allow undocumented aliens to open checking and savings accounts, credit cards as well as mortgages on homes. These loans usually require the borrower to submit a credit report, employment history and income tax documentation. The catch with these loans is that you have to be legally employed through permit, VISA or the immigration system in order to qualify. The benefit to these loans is that they do not require a social security number and legal citizenship in order to obtain a mortgage whereas the FHA does. Usually these loans are associated with higher initial deposits and interest rates but we promise to find the lowest cost mortgage for you and your family. We are one of the very few companies that offer ITIN loans.
VA loans are loans offered through the US Department of Veteran Affairs in order to provide loans to returning service members forgoing down payments or a high credit score rating. Since the initial collapse of the housing market, VA loans have increased in popularity with veterans, active duty military members and their families. These loans do not require the borrower to purchase private mortgage insurance which would increase monthly payments if used. These loans offer competitive interest rates since they are less risk to the lender should the borrower default on payment. The VA loan includes a 2.15 percent fee for first time home owners or 3.3 percent for all subsequent loans. This fee goes directly to the VA to ensure that the program is funded without using tax payer dollars. We estimate a single family home in Miami to cost $424,100 through VA loans including the VA fund fee.