adjustable rate loans
what is better for your adjustable rate mortgage to be based on 6 month libor or 1 year?
Question
Explain the differences between FHA and VA loans, including qualifications, eligibility, etc?
I also need to compare and contrast four different types of mortages. The four I chose to look into are blanket, balloon, adjustable rate and open-end.
6 months ago - 1 answers
Best Answer
Chosen by Asker
To get a VA loan your must be or have been a veteran. A FHA loan is available to the general public. FHA requires the buyer to put a down payment of at least 3.5%. With a VA loan the seller is required to pay more of the buyers fees and the veteran does not have to put a down payment. Neither are allowed to have any pre-payment penalties. The VA also has a "No-No" loan, where there is no down payment required and the seller pays all of the veterans closing costs. Basically $1 is all that is required from the buyer/veteran. Here in my state they have a Cal-Vet loan. Again no down payment, below market rates. The state buys the property and basically then does a "land contract" with the California vet until it is paid off or sold. The only problem with a Cal-Vet program is that they require the vet to carry a declining term life insurance policy through the program that increases the monthly payment cost.
by Glenn S
6 months ago
Asker's Rating: 