Financing Your Purchase...
...Selecting the mortgage that suits you best is like buying a pair of shoes; choose the one that fits the best. By becoming familiar with the many choices available you can find a package that meets your individual needs.

Some of your choices are:

CONVENTIONAL
Fixed rate mortgages, either 30 or 15 year amortization's, are most commonly used. Typically, the buyer must have a minimum of 5% of their own money. Gift letters are usually acceptable for additional down payment monies. If possible, the buyer should have a 20% down in order to avoid PMI (Private Mortgage Insurance). PMI involves additional up-front costs of about 1% and an additional fee on the monthly payment, typically 1/3% - 1/2%.

ADJUSTABLE
There are as many adjustable rate programs as there are lenders who offer them - and even more. The adjustable mortgage is useful for the buyer who needs a lower rate to qualify for a loan. Another reason to choose an ARM would be if the buyer is only going to own the home for a short time. Buyers should ask about margins, annual caps and life of the loan caps.

FHA
The Federal Housing Authority provides exceptional opportunities. The buyer with little cash to invest will find excellent opportunities. It is one of the very few programs that will allow you to borrow your entire down payment. Mortgage insurance and closing costs can be rolled into the mortgage. The 203K plan works like a construction loan, allowing the buyer to purchase a rehab candidate and borrow the rehab funds. For more information on HUD programs, go to: www.hud.gov.

FVA
For the man or woman who qualifies for the Federal Veteran Administration there are few opportunities as exceptional as their home loan programs. Down payments can be as low as $0. Expect to pay funding fees and origination. Seller may assist with closing costs and origination may be built into the mortgage. Rates are excellent. Contrary to some opinions, the FVA loan can be easier to get the buyer and home to qualify than with other loans. The FVA is committed to helping the Veteran as much as possible. For more information, go to: http://www.homeloans.va.gov/.

WHEDA
The Wisconsin Housing Loan is available for first time home buyers. The buyer must determine the income limitations and home price limitations for the area of their choice. Interest rates are generally lower than the mainstream loan. The loan is not appropriate when the property needs a lot of work or if the buyer is marginal. For more information, go to: http://www.wheda.com/.

RELATED WEB SITES
www.hud.gov/local/mil/mil_reo.html
A list of HUD homes for sale in Wisconsin including Milwaukee. It is updated each Friday.

www.fanniemae.com
Fannie Mae's home page. It has information for lenders and home buyers on mortgage and financing. There is also a list of Fannie Mae homes for sale.

http://www.freddiemac.com/
Freddie Mac's home page. It contains listings of Freddie Mac homes for sale and other information.

STATE VA
Wisconsin Veterans may qualify for this program. Veterans are encouraged to check with the Veterans Service Department to see if they fit within the criteria. Interest rates are typically lower than other programs. If the property and the buyer qualify, the program is exceptional. The State VA web site is: http://dva.state.wi.us/.

CONSTRUCTION LOANS
If you want to build a home, you will be heading out for a construction loan. They can be made with a "bridge-type" loan and closed in one closing at the home completion or the lender may require 2 closings - one at beginning and one at the end. You will likely pay double closing costs for the "two closing" program. The funds are released as the project progresses. The buyer only pays interest on the used portion. Typically, the rate at the final closing is the rate that the loan is closed at. Seldom does the final closing reflect the beginning rate.

SOME OF MY FAVORITE LOAN OFFICERS