LET’S GET CREATIVE! WE’RE ON TO PART 3 OF ‘THE 4 MOST WIDELY USED MORTGAGE PROGRAMS FOR BUYING A HOME’. THE QUESTION REMAINS “WHAT IF WE DON’T FIT INTO A CONVENTIONAL OR GOVERNMENT MORTGAGE?” MANY FOLKS AT THIS POINT JUST GIVE UP. BUT TAKE HEART, THERE’S STILL HOPE!
Just like conventional mortgages, government mortgages can be divided into many subcategories. But the basic difference is that rather than a private firm taking on the risk of default in the form of mortgage insurance (PMI), it’s the federal and/or state government that provides the lender with mortgage insurance against a borrower’s default. Additionally, certain governmental departments such as HUD, FHA, and VA play a heavy role in defining the rules and regulations as opposed to banks and investment firms.
So you’ve made the decision that it’s time to enter the home buying process. Congrats!! Chances are, unless you’ve been left an inheritance or you’re a superstar when it comes to saving money, you’ll need financing. It’s important to note right off the bat that mortgages are sorted into several basic categories.