We are an FHA/VA approved Lender

[fisherdog19]

Well, a couple months have gone by since we became a government approved lender but I wanted to get my feet wet before letting you all know. In May, we were approved by the Federal Housing Authority (FHA) and Veterans Affairs (VA) as a direct lender in MN, ND, IA, MT, SD, and WI. I'm sure many of you are asking what this means so I will explain the benefits of each program below.

FHA- These loans are insured by the federal government which makes lenders feel better. Because it is backed/insured by the feds, we are able to offer a lower rate than the conforming (Fannie Mae/Freddie Mac) counterpart. The maximum LTV (loan to value)with FHA loans can be 98.75% depending which state you live in, but can be structured as a 100% deal when using a down payment assistance program.

FHA loans do require a Up Front Mortgage Insurance Premium (UMIP) on all loans greater than 15 years that can be 1.25-2.25% of the loan amount, depending on your credit score and LTV. This UMIP is financed above and beyond the base loan amount so it is not an out of pocket cost. There also is a yearly MI payment of .5%-.55% of the loan amount spread out over 12 months which again depends on the LTV and credit score. In certain cases you can get a refund if you payoff or refinance your mortgage within a certain amount of years.

FHA loans are also much more forgiving on credit scores, and actually do not even use them for credit qualifying. It is possible to get approved with a mid to low 500 credit score if everything concering income, assets, and job history or OK.

Another plus is that FHA does not take into considerateion the fact that your home may be in a declining market, which some conforming loans do, and private mortgage insurance company's definatley do. This means a reduction of the maximum LTV in which you can qualify, but not so with FHA.

VA- VA loans offer 100% financing with no MI and have an upfront funding fee of 2.125%. As a VA member, you would have an awards letter that shows how much VA backing you qualify for. There are some credit score criteria associated with VA loans, but for a Veteran wanting to get into a home, it is a great program.

Both of these programs have maximum loan amounts that are solely dependent on what county you reside in, but offer greater flexibility and financing than conforming loans. Valesco Mortgage is a division of a Federal Savings Bank so be assured that there will be no monkey business and you'll get what you are promised. Remember, as always, I will credit $350 at closing to all Fishing MN members that will help cover some of your fees.

[311Hemi]

Peter, I just wanted to say thanks again for all your help with my refinance. You made things easy on my end and I am now finally locked in onto fixed rate mortgage.......which makes me feel much better these days than being in the ARM I was in!

Maybe one of these days we will get out fishing in DL!

[rodmaker]

Good to hear about getting into a fixed. We were in that situation around 5 yrs ago.

How's the HSR 9000 ???

[311Hemi]

The HSR9000 is great.....I love the setup!!! The hidden hood handle/real seat really makes it nice!!! Now if I could just get more time on the water it would be even better.

Funny thing with this whole mortgage deal was that another FM member met me at my house for the closing (from the title company).

[rodmaker]

Glad to hear you took care of the Mortgage issue, and the HSR 9000 is working well for you. I thought you would like it. I haven't heard any complaints on them form people who have built one.

[fisherdog19]

It was great working with you Hemi, glad I could help you out of a tight spot. Hope you get to use that rod of yours