Purchasing a Home

If you are purchasing a home, Lynx Financial Group offers many types of mortgage programs.

Conforming Loan (insured by Fannie Mae/Freddie Mac)

Conforming Loans are loans that conform to GSE (aka Fannie Mae and Freddie Mac) guidelines. The Conforming loan limits for 2012 remain at previous set limits, $417,000 for a one family home. The minimum down payment is 3%, although it is much more beneficial to put at least 5% down. Private Mortgage Insurance and Escrow accounts will be required on loans with less than a 20% down payment. Borrowers will be subject to Loan Level Price Adjustments (LLPAs), set by the GSEs, based on credit score and Loan to Value ratio (LTV).

Click here for Conforming Loan information: Fannie Mae or Freddie Mac

FHA Loan (insured by the Federal Housing Administration)

FHA loans cannot exceed the statutory loan limit, which can be found here: FHA LOAN LIMITS. FHA loans require as little as 3.5% down, and are subject to both an Up Front Mortgage Insurance Premium (UFMIP) and Annual Mortgage Insurance Premium (MIP) which is paid monthly. The UFMIP is paid once and is generally financed by adding it to the loan amount. The UFMIP can be paid in cash by the buyer or seller. MIP is similar to PMI, as it is paid monthly. Credit requirements for an FHA loan are less stringent than requirements for a Conforming Loan.

USDA Loan (insured by the United States Department of Agriculture through their Rural Development division)

Designed to assist home buyers that don't necessarily have the ability to secure other financing due to down payment requirements. In order to be eligible for a USDA Rural Development mortgage the property must be in an eligible area, which can be checked on USDA's eligibility website. Also, home buyers must be under USDA's income limits, also found on USDA's eligibility website. There is NO Downpayment requirement, and in some situations closing costs can be financed as well. USDA's Rural Development mortgages require a Funding Fee (similar to FHA's UFMIP) and minimal Monthly Mortgage Insurance.

Click here to determine USDA property eligibility: USDA PROPERTY
Click here to determine USDA income eligibility: USDA ELIGIBILITY

VA Loan (guaranteed by the U.S. Department of Veterans Administration)

Designed to offer financing to eligible American veterans or their surviving spouses. VA loans require NO Downpayment. VA loans require a Funding Fee (again similar to FHA's UFMIP and USDA's Funding Fee) that is based on whether the veteran is Active Duty/Veteran or Reservists/National Guard and on the loan category (less than 5% down payment, 5-10% down payment, 10% or more down payment, etc.). VA loans are subject to maximum loan limits found here on VA's County Loan Limits.

The Purchase Process

Below is a brief overview of the purchase process. Each client's situation is different, so the following is only a guide:

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