Two Loans That May Improve Your life

By Sheryl Landrum
Local Lender Columnist
Aug 12, 2008
We would be hard pressed to find anyone who did not want the best opportunities for their children when it comes to good schools and safe neighborhoods. We would also be hard pressed to find someone who would not agree that, unfortunately, not all schools and neighborhoods are equal when it comes to higher standards of education and safety, and that better neighborhoods usually equate to both. Whether you are looking in San Diego, California or any other parts of the country, if you are trying to move into an area where opportunities are more abundant, check out some old loans that may get you a new mortgage in an area you aspire to be.

Old Mortgage Loans Can Put You into New Neighborhoods

As home prices have dropped, great deals are appearing in neighborhoods that may have seemed off-limits to home buyers in the past; neighborhoods that may offer better schools and lower crime rates than others. However, any new home requires a mortgage and many people still need help finding mortgages with low interest rates as well as assistance when qualifying for homes with little or no down payment. If you are one of these people, here are two home mortgage programs that you need to discuss with your loan company.

The U.S. Department of Agriculture's Rural Development mortgage is great for those who have a stable income but no savings. This loan offers borrowers a no-down-payment mortgage for home buyers without a down payment and little or no closing costs. This program "is limited to towns and cities with populations under 10,000 and non-metro communities with populations between 10,000 and 25,000…" While this may not seem doable in Southern California, there are actually eligible sections in San Diego, Orange, Riverside, and Los Angeles counties. This loan program offers a 30 year fixed rate mortgage, 102% financing, and generous income qualification guidelines. Talk to your loan company for details or go to www.eligibility.sc.egov.usda.gov and find "Property Eligibility" on the left.

HUD'S Federal Housing Administration also has a great loan opportunity for borrowers needing assistance. This loan is the FHA Streamline K and will actually help those buying a home with an FHA loan qualify for up to $35,000 over the purchase mortgage amount to help fix and repair homes. FHA guidelines apply, mortgage loan limits are up to $729,750 until the end of the year, and as with other FHA mortgages interest rates are affordable. Go to www.fha.gov and search for Streamline K to learn more.

There are options for homeowners trying to find a better life for their families in San Diego and other high-priced neighborhoods. These are two mortgage options you should explore and discuss with your loan company to see if you might qualify and find the neighborhood that is right for you.

Source:
The San Diego Union Tribune, Sunday, July 19, 2008, Uncle Sam's Little-Known Loans Worth a Second Look, by Lew Sichelman

About the Author
Sheryl Landrum is a Loan Officer with General Mortgage in San Diego, California and a freelance writer specializing in mortgage issues.