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Fha Loans:
There are many types of fha loans. We will discuss the Most Popular of the Fha loan program types available on the market today.
What is the Federal Housing Administration?
The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.
Va Loans:
100% Financing
Va offers no down payment and allows the seller to pay up to 6% of the buyer's closing costs. This is known as a Va Free Move in.
Va offers a product call Vhap that has a substantial lower interest rate compared to a standard Va Purchase Loan.
How the Housing Assistance Program Works
The Veterans Housing Assistance Program (VHAP) provides financing up to $325,000 toward the purchase of a home to qualified Texas veterans. Loans for $45,000 or less are originated through the Texas Veterans Land Board's (VLB) direct loan program.
There is no maximum sales price with the VHAP; however, the VLB can only loan up to $325,000 towards the purchase. The VHAP must be originated in conjunction with Federal Housing Administration (FHA), Veterans Administration (VA), or conventional financing. Loans over $45,000 must be originated by a participating lender.
The VHAP is not a refinancing program. If you have an existing loan on your home, you cannot use the VHAP to lower your interest rate, nor can the VHAP be used as a down payment on a home. It can only be used as a first lien on your primary residence.
The term of the loan can be 15, 20, 25 or 30 years.
VHAP loans typically require an escrow account be set up for taxes and insurance.
Cosigners and guarantors may be accepted on the veteran's behalf if the veteran has sufficient income to qualify for at least 60 percent of the monthly payments on the mortgage loan, including taxes and insurance.
Two married, eligible veterans may have only one active VHAP loan at one time.
Conventional Loans:
A conventional loan is basically any kind of lender agreement that's not backed in full by the Veterans Administration or protected by the FHA (the Federal Housing Administration). All told, there are several broad categories of conventional loans. Fixed rate mortgages are simpler in some cases. A home borrower “locks in” at an interest rate, and he or she pays down the principal and interest on the mortgage every month at that rate.
Other so-called conventional loans include conforming loans. Basically, these are arrangements that meet stipulations set forth by Fannie Mae and or Freddie Mac, two very large mortgage trading companies.
While Fannie Mea and Freddie Mac don't actually approve or disapprove of loans, they buy and sell mortgages. Lenders enjoy signing borrowers up with conforming loan, since they can later sell these loans to Fannie Mea or Freddie Mac to get funds for other investments.
Two Types of Conforming Loans are Fannie Mae and Freddie Mac
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Fannie Mae's Single-Family Mortgage Business works with a nationwide network of lenders, servicers, and other industry participants. Together, we help serve the need for liquidity, stability, and affordability in the U.S. mortgage finance market. We are committed to helping our lenders of all types and sizes, in every market condition, face their business challenges and meet their business goals, today and tomorrow.
We work with our business partners to provide:
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Safe and reliablemortgage productsthat follow sound underwriting standards
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Flexible mortgage loan servicing guidelines that help lenders and servicers keep borrowers in their homes
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Web-based technology tools that help our customers and other industry participants streamline their processes and reduce costs
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Special initiatives, such as Keys to Recovery™ and HomeStay®, that support sustainable homeownership solutions, thereby helping ensure healthy communities
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Attractive loan execution options, so our lenders can transact business with us efficiently and profitably
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A team of reliable expertsto provide introductory and ongoing business support
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A range of training opportunities and information resources- including our highly regarded Housing Finance Institute™, free instructor-led and recorded Web seminars, and publications on a variety of topics - designed to help new and experienced customers better understand the market and Fannie Mae operations.
Freddie Mac
Freddie Mac's mission is to provide liquidity, stability and affordability to the housing market.
Congress defined this mission in our 1970 charter [PDF 54K], which lays the foundation of our business and the ideals that power our goals.
Our mission forms the framework for our business lines, shapes the products we bring to market and drives the services we provide to the nation's housing and mortgage industry. Everything we do comes back to making America's mortgage markets liquid and stable and increasing opportunities for homeownership and affordable rental housing across the nation.
Our mission strives to create:
Stability: Freddie Mac's retained portfolio plays an important role in making sure there's a stable supply of money for lenders to make the home loans new homebuyers need and an available supply of workforce housing in our communities.
Affordability: Financing housing for low- and moderate-income families has been a key part of Freddie Mac's business since we opened our doors. Freddie Mac's vision is that families must be able both to afford to purchase a home and to keep that home.
Liquidity: Freddie Mac makes sure there's a stable supply of money for lenders to make the loans new homebuyers need. This gives everyone better access to homefinancing, raising the roof on homeownership opportunity in America | | 
