Harvey Realty, Inc.

FHA loans have not been a viable source of funding to homebuyers upper-end markets such as those in California for the last 10 years because of their low dollar limits. That has changed. With the recent passing of the Economic Stimulus Act of 2008 by Congress limits were raised from $362,790 to $729,750.

FHA loans are government insured and offer buyers competitive rates. They feature more flexible credit guidelines than that of conventional loans and allow up to 100 percent financing with down payment assistance. And the down payments can be as low as three percent of the purchase price.

VA loans are federally guaranteed. VA loans were established in 1944 to assist eligible veterans with purchasing a home. Unfortunately, there are many veterans who are not taking advantage of this great benefit, because they don’t believe they are qualified.

U.S. veterans who have served on active duty and have an honorable discharge after serving a minimum of 90 days of wartime or a minimum of 181 continuous days during peacetime; National Guard and Selected Reserves; and spouses of service men or women who died in service or of a service related injury can qualify. Before applying for a loan, veterans will need to acquire a Certificate of Eligibility from the Veterans Administration. Just as with FHA loans, a VA loan allows home purchases with no down payment up to $417,000; with a down payment veterans can be approved for higher loan amounts.

There are some restrictions with VA loans, such as the loan has to be used for a primary residence – single family dwelling, planned unit development, condominiums or two to four unit dwellings. VA loans can be used a second time, but must meet the same requirements and used only for a primary residence.

A huge benefit of the VA loan is the savings in mortgage insurance. With a VA loan, there is only a one time funding fee and no monthly premiums, which can add up to huge savings over the life of the mortgage loan.

Harvey Realty, Inc's preferred lenders can assist buyers in obtaining both FHA and VA loans. For more information please call 1-888-775-3846.