FHA Loans explained

Who is the FHA?

FHA stands for the Federal Housing Administration which is part of the U.S. Department of Housing and Urban Development.  The FHA was created as part of the National Housing Act of 1934.  The FHA insures loans made by lending organizations such as banks and private lenders for the purpose of building or buying a home.  It also works to improve housing standards and conditions and to help keep the mortgage market stabilized.  Home buyers all throughout North Carolina have been utilizing FHA loans for decades.

 

What is an FHA Loan?

This is a loan provided by an FHA improved lender such as Alpha Mortgage, that is secured by Federal Housing Administration mortgage insurance.  This program is a way that our government is helping citizens who are in a lower income bracket and might not otherwise be able to obtain a mortgage loan.

 

Do I qualify for an FHA Loan?

At Alpha Mortgage we are going to work closely with you to find out which mortgage program is best for you.  If that happens to be an FHA loan then we will help you through the prequalification process.  This will include providing your employers name and address and demonstrating that you have held a steady job for two years or more with the same company or employer without a decrease in income.  You will also need to provide the amount of your Gross Monthly Salary and if you have held multiple jobs over this period, provide W2’s for all of them.  If there are any foreclosures with your name attached, at least three years need to have passed (this applies for bankruptcy as well).   You will also need to provide the addresses of where you have lived in the past two years.

 

If you cannot locate a copy of your W2’s, do not hesitate to contact your employer for assistance.  You can also order a replacement copy from the IRS’ website.  If this all seems overwhelming, that is what your Alpha Mortgage loan officer is here for.  They are  your trusted source you can turn to who will guide you through the process.  With Alpha Mortgage you are never alone.

 

So What Do I Do Now?

Before you gather all the needed information to prequalify for an FHA loan, give your local Alpha Mortgage branch a call.  We will set up a one-to-one for you with one of our loan officers, at your convenience, and then we can learn about your goals for buying a home or refinancing and begin looking at the different options you have.  It is that easy and we plan on keeping the rest of the process as simple as possible.  We have offices  in Wilmington 910-256-8999, Winston-Salem 336-760-3013, Fayetteville 910-484-7272, Asheville 828-552-0330, Jacksonville 910-347-7283, New Bern 252-634-3000, & Jacksonville 910-347-7283.  We look forward to hearing from you!

 

 

VA Loans

In 1944, near the end of the second World War, President Franklin D. Roosevelt enacted the Servicemen’s Readjustment Act.  This is what we know today as the GI Bill of Rights.  This act provided veterans with a federally guaranteed home with no down payment.  For millions of veterans, this gave them and their families an opportunity to realize the family dream of home ownership.

The loans are guaranteed by private lenders which include banks and mortgage companies.  As long as the veteran is eligible to purchase the home, which is required to be for their own personal occupancy, the lender is protected against a loss if the loan is not repaid.  This is why no down payment is required and the veteran and his or her family can obtain very favorable financing terms.

If you are a veteran and you want to apply for a VA Loan, what is your next step?  The answer is to follow the normal steps of home buying and that is to get preapproved from a mortgage lender such as Alpha Mortgage.  We will help determine your credit rating, your income to debt ratio and go through the process of helping you understand what your monthly costs might be.  This will give you a solid understanding of what you can afford.  Once we have determined what you are preapproved for, we will have a clearer understanding of how much you will need from your VA Loan.  The maximum guarantee authorized by the VA is 25 percent of the loan amount up to $104,250 and the maximum VA home loan is $417,000.  If you are looking to refinance, a VA Loan can help with that as well.  Be sure to ask your Alpha Mortgage broker about the Streamline Refinancing Program.  If you qualify you may be able to refinance at little or no expense.

Here in eastern North Carolina we are extremely lucky to be surrounded by so many of our nations finest soldiers who never hesitate to put their life on the line to protect ours.  Our appreciation for the men and women of this country runs deep and at Alpha Mortgage we will work as hard as we can to make sure any military family can realize their dream of home ownership.  Whether you are a member of Pope A.F.B., Seymour Johnson A.F.B., Fort Bragg, Air Station Elizabeth City, National Strike Force, Camp Lejeune, MCAS Cherry Point, or MCAS New River you may qualify for a VA Loan and we will help make the process as simple and easy as possible.

We have offices in your area that can help you when you are ready.  Our Wilmington office is 910-256-8999, our Fayetteville office is 910-484-7272, our Jacksonville office is 910-347-7283, and our New Bern office is 252-634-3000.  We look forward to hearing from you and while words cannot truly express our gratitude, thank you so much for your service and dedication to our country.