Three Affordable Home Loans That Your Tampa Mortgage Bank May Be Offering |
| Date Added: June 26, 2011 06:44:29 AM |
| Author: Flora Miles |
| Category: Business: Real Estate |
Do you know that there are at least three affordable home loans that your mortgage bank in Tampa may be offering aside from FHA and VA loans? Ask your chosen bank or financing firm if they’re offering the mortgage loans described below so you can use the one that fits your situation.
Most buyers know that FHA and VA home loans are among the most affordable loans, but not many are qualified for these loans. VA loans are only for military personnel, retirees, veterans and qualified survivors while the minimum credit score requirement for FHA loans has been raised to 500. Additionally, more lenders are now requiring a credit score of at least 620 for prospective borrowers desiring the 96.5-percent loan to value ratio.
If you don’t qualify for FHA or VA loans, you can still check if you qualify for one of the following types of home loans, and then check if the Tampa banks you’re considering are offering these home loans:
Bank-branded Affordable Home Loans
A number of banks have designed their own affordable housing loan program to target prospective borrowers who earn lower incomes but who show evidences of their capacity to make monthly mortgage payments. Under this program, the bank requires a lower down payment rate, allows the use of gifts or grants to pay closing costs, and waives certain policies such as prepayment penalties and cash reserve requirements.
NonProfit-Assisted Home Loans
These are home loans provided by the bank in partnership with nonprofits. These nonprofit groups are usually those that are focused on housing, community development and family welfare. They help borrowers in several ways, such as providing down payment grants, granting low-cost loans for use in paying closing costs, or helping in paying the monthly mortgage costs.
USDA Rural Housing Program
This is for the purchase of homes located in areas pre-designated by the USDA Rural Development as rural areas. Qualified homebuyers are those that are not earning more than 115 percent of the HUD median income in their areas, the level of which varies depending on the number of family members. The USDA also requires good credit standing and limits the loan to the purchase of a principal residence only. The attractions of this home loan are that the buyer need not make a down payment and the seller can pay for up to 6 percent of the closing costs.
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