Ray and Nimi Office: 651-486-5628 Cell: 651-398-6261 Res: 763-795-8979 Fax: 651-483-3681

Questions to Ask When Pursuing a Loan
Things to Consider When Buying a Home
How to Choose the Right Mortgage
The Home Financing Process

The three types of available loans are FHA, VA, and Conventional.

An FHA loan is a loan that is insured by the Federal Housing Administration. FHA loans require borrowers to pay MIP (Mortgage Insurance Premiums) which are paid monthly to insure the loan.

A VA loan is a loan made available for veterans and guaranteed by the Veterans Administration. VA loans require the borrower to pay a one time VA funding fee.

A "conforming" Conventional loan is a loan no greater than $227,150, which is neither insured by the FHA ,nor guaranteed by the VA. Loans with less than a 20% down payment require private mortgage insurance to insure the added risk. On a purchase with 20% or more down, it may be beneficial to choose a conventional loan, as no additional fee is required to insure or guarantee the loan. In addition, both FHA and Conventional loans are offered with either fixed rate or adjustable rate terms.

Choosing the right type of mortgage can be a very easy task. However, the choice may not always be very clear, especially if you are considering an Adjustable Rate Mortgage (ARM). You may have to do some homework to evaluate your personal financial situation and then determine the features of available loan programs to analyze how they correspond with your needs.

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Ray and Nimi Singhal  (651) 486-5628 direct  Coldwell Banker Burnet 100 Village Center Drive St. Paul, MN 55127 (763) 795-8979 res CRS, ABR, GRI, e-Pro 500, ESA, SRES Platinum Producer (top 1% nationally)