Tuesday, January 27, 2015

Confused On Type and Mortgage Loan Amounts in Phoenix Scottsdale?


Here's a great and very common question from my clients. One about mortgage loan types and amounts. Being in the business of real estate everyday, you become accustomed to expressions and the jargon of the industry. But when looking at it from the consumer's point of view, I can see why it seems confusing.

So here are the simple, quick and fast, basic, rounded up mortgage loan types (and the words used) and their amounts you'll encounter when you purchase a home that you'll finance.

1. The conventional mortgage loan. Typically with a down payment of 20% or so, sometimes less, backed by Fannie May and Freddie Mac up to $417,000.

2. The jumbo mortgage loan. Same a above but from $418,000 and up.

3. The FHA mortgage loan. Typically with a 3.5% down payment, it involves mortgage insurance premiums, and up to $271,050. This may vary by county.

4. The VA mortgage loan. Typically, zero down payment, and up to $417,000 although there is no real loan limit so higher amounts are certainly possible.

5. The Foreign National mortgage loan. Typically 25 to 35% down, no real loan limits as most of those mortgage loan follow the same guidelines of the loans described above except of course for the VA mortgage loan program.

6. And other types of mortgage loans such as private money, hard money, seller financing, investment, construction, with variables scenarios, parameters and amounts depending on the situation.

So, there best approach is to call me to discuss your home purchasing plans and I'll have you connected with the right competent and professional preferred mortgage lenders specific to your situation.

Richard Bazinet - Realty ONE Group - Phoenix Scottsdale Real Estate