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Shop for a Loan

How to Find a Lender

Today, lenders can be found through a variety of sources. We would be happy to suggest lenders we have used successfully, who have proven themselves competitive and capable even with problem properties or poor credit.

Choosing the Right Lender

Interview several lenders to evaluate the following:

  • Ability to explain things clearly and return your phone calls in a reasonable time period.
  • Competitiveness of interest rates, costs & fees.
  • Availability of loan programs that suit your credit profile and desired property.
  • Access to local loan approval committee that understands the kind of property you are buying.

Choosing the Right Kind of Loan

Today there are many types of loans on the market. Your lender is the best person to help you select a loan program to suit your needs. Below is a summary of the three most popular loan types we see in practice:

  1. Conventional loan: A conventional loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). It is typically fixed in its terms and rate.
  2. FHA Loan: An FHA loan is insured by the Federal Housing Administration and protects lenders from financial risk. Lenders have to meet certain criteria for their loans to be termed “FHA-approved,” after which the FHA backs the loans the lender issues in case a borrower defaults on the mortgage. Borrowers must also meet requirements to qualify for one of these loans.
  3. VA Loan: A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The loan may be issued by qualified lenders. The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses.