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David Webber Loan Officer

Breaking Bad is not over! ...For Home Owners

Friday, September 27, 2013 - Article by: David Webber Loan Officer - First National Bank Southwest - Message

Okay Buckaroos! FHA or USDA for low down payment options.

Well well, well, campers... How long have you been on the fence trying to decide if home ownership is all that it is cracked up to be? Are the splinters starting to break through? Well you might think the only way you are going to buy a home now a day is to have a proverbial bubble surrounding your every credit move. The question keeps coming up "If you buy a high ticket item it might hurt your chances to buy a home?" Saving every red cent to make that down payment might be a delay to your homely goal. Remember, the realtors all want to show you the highest commission and the sellers want the most for their home. Since our so wonderful government has stepped in to the lending business and created a private corporation for financing home mortgages, the art of regulation has become a newly found Van Gogh painting. Where can I emphasize the details of knowing if you will or will not default on our government's money? I thought it was our taxes that funded their decisions. Our wonderful chief executive is ranting about the absolving of the FREDDIE and FANNIE business units of the Federal Hierarchy and retiring senators leaving the mess up to their appointed confidants. But what does that have to do with USDA and FHA. Well both of these loan programs were developed to help the homeowner without requiring a huge down payment and get into a home and own some of this great country, before the foreigners get it. Well now both programs have private mortgage insurance and up front funding fees. USDA has a slightly less factor and more of a funding fee and FHA has higher monthly and a lower upfront fee but the basis is you can only use a USDA loan where they allow you. So if you want to be in a place that is not restricted the FHA is all you got for the lowest down payment scenario.

And now you have done it...

So you make an offer on a home and get the seller to accept and you have started the process. You have sent your application in to your favorite mortgage professional who gave you a hokie pre-qualification letter and the game "hurry up and wait" begins. The night stalking processors and underwriters are making sure that you are the right person for the job of repayment and you truly want the house and not tied to some scheme that wants to overthrow this country financial status by helping build the next real estate meltdown. The sellers doubt themselves and are all wondering if they made the right choice. They too will either be without a home and shopping for a new one.

So before you choose home ownership find the right program, get the right advice, trust your advisors and tweet, facebook, and instagram your wonderful new home. Because you are going to love it!



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