The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes. The down payment for a FHA loans is 3.5%.
VA-backed Veterans home loans can help Veterans, service members, and their survivors to buy, build, improve, or refinance a home. The VA guarantee (or stand behind) a portion of the loan you get from a private lender. Some benefits of VA loans are: No down payment, Better interest rates, No private mortgage insurance, Fewer closing cost.
A conventional loan is a mortgage that is not guaranteed or insured by any government agency, for example FHA and VA. It is typically fixed in its terms and rate. However, conventional loans also allow down payments as low as 3%. Your lender or Fannie Mae are good sources for more information.
Down payment assistance programs provide a set amount of money to qualified homebuyers. Homebuyers can use the money to cover their down payment and/or closing costs . The most widely used ones in the Memphis area is the Tennessee Housing Development Agency (THDA) and the City of Memphis DPA program, some local lenders also have in house DPA programs.
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A home inspection is part of the buyer's due diligence during the purchasing process. It is recommended that the buyer hire a professional home inspector to look at the house's interior and exterior, Heating and Air Conditioning system, interior plumbing and electrical systems, roof, attic, floors. windows and doors, foundation, basement and structural components to see if there are any issues. Once completed the inspector provide a written report and pictures of the results. If repairs are needed, your realtor will start the negotiations with the other side based on your recommendations. Based on the complexity of the concerns additional professionals may need to be hired.
Before approving a loan.The lender will send an appraiser out to determine if the current value of a property will support the accepted asking price. The appraiser will conduct an on site visit taking pictures and measurements of the interior and exterior. They will notate any amenities, updates/upgrades done to the property. They will also look like properties in the area to support their evaluation. The appraiser will look at current market conditions , most recent listing and sales. In some cases it may require the listing agent to provide additional information to the appr. The appraiser will submit his/her report to the lender with their recommendation and any repairs if needed.