Purchasing Your Dream Home 

Purchasing a new home can be a daunting experience. But it doesn’t have to be. Valley West Mortgage takes pride in getting you the house that you want.

Types of Mortgage Options

We offer FHA (Federal Housing Association)Conventional and VA Loans

What is an FHA Loan

The Federal Housing Authority is a government run program its purpose is to try and help more people qualify for a home mortgage loan. They provide home mortgage loans through private lenders. The amount the FHA loans you is insured so should you default on your home mortgage loan payments, the company that provided the loan to you doesn’t have to foreclose on your home.

The great thing about an FHA home mortgage loan is, any United States citizen can apply for one; the interest rates are much lower than any conventional type of home mortgage loan, the down payment requirement is typically only 3.5% of the total cost of the home, and your monthly payments are based on whatever 30% of your monthly income is. Closing costs on a conventional home mortgage loan are usually quite high, but with this type of mortgage loan the closing costs average two and one-quarter percent. There is however a limit on how much you can borrow, which can make deciding hard depending on the cost of the home you are looking to buy.

What is an Conventional Loan

A conventional loan is the most common form of mortgage in the U.S market. Conventional mortgages get it’s name from not being insured by any government agency as opposed to FHA loans and VA which are guaranteed by HUD and Veterans’ Administration respectively.

There are many alternatives to conventional loans, for example government insured loans like VA and FHA loans, but generally for a borrower with good credit history, a traditional loan offers the lowest interest rates. Another interesting point is that although conventional loans insist on a 20% down payment, putting down more equity on his home may actually be beneficial to the borrower.

What is a VA Loan

VA home mortgage loans are offered through the Department of Veteran Affairs specifically to service men and service women and a select number of government employees. The home mortgage loan is guaranteed, so that the private lender will be repaid should the borrower default on their payments.

The qualifications for a VA home mortgage loan are less restrictive than the qualifications of a conventional home mortgage loan, which makes it easier for the service people and veterans to buy a new home. These types of loans offer great benefits such as smaller down payment requirements, better terms on fixed rate home mortgages and adjustable rate home mortgages. VA adjustable rate mortgages only increase or decrease a total of 1% per year and only a total of 5% over the total life of the loan. VA loans are a small token from the government, a way of making it easier for service people to start new lives in a new home once they come back from war.