Types loans and chosing the best

What is a Conventional Loan?

By definition, a conventional loan is any mortgage that is not guaranteed or insured by the federal government. A conventional loan is generally referring to a mortgage loan that follows the guidelines of government sponsored enterprises (GSE's) like Fannie Mae or Freddie Mac. Conventional loans may be either “conforming” or "non-conforming". Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Nonconforming loans don't meet Fannie Mae or Freddie Mac guidelines, but they are also considered conventional. Whether you're buying a home or want or refinance your mortgage, a Conventional Loan might be right for you. 

What are the Conventional Loan Requirements?

To decide if you qualify for a Conventional Mortgage Loan, we will look at:

• Your income and your monthly expenses. Standard debt-to-income ratios are 28/36 for Conventional Loans. These ratios may be exceeded with compensation factors.
• Your credit history (this is important, but Conventional's credit standards are flexible). A FICO score of 620 or above is very helpful in obtaining an approval.
• Your overall pattern rather than to individual problems you may have had.

To be eligible for an Conventional mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (28% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an Conventional approval. You must also have enough income to pay your housing costs plus all additional monthly debt (36% ratio). These percentages may be exceeded with compensating factors.

What are the Conventional Down Payment Requirements?
Conventional Loans require the home buyer to invest at least 5% - 20% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $5,000 - $20,000.

What will be my Interest Rate?

The interest rate for your home loan will be determined by the type of loan program that you qualify for and your credit score. You might be asking yourself what the formula to calculate interest rates is. Interest rates are driven off of Mortgage Backed Securities (MBS) which are commonly referred to "mortgage bonds". These values of these bonds determine whether the interest rates rise or fall. Your final rate will determine your payment using the standard calculate mortgage payment formula. Please contact one of our loan officers to see what is today’s lending mortgage rate.

What types of property are eligible?

While Conventional Mortgage Guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional Loans can be used to finance primary residences, second homes and investment property.

Can I get a Conventional Mortgage Loan after bankruptcy?

Criteria for Conventional loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for four years or more, you are eligible to apply for an Conventional mortgage. If you have had a Chapter 13 bankruptcy, it must be documented that the your credit reputation has been re-established for at least two years to be eli bible for a Conventional Loan Application.

What is the maximum amount that I can borrow?
The maximum amount for an Conventional Mortgage Loans are determined by:

Maximum loan amount: The maximum loan amount allowed for an Conventional Conforming Loan varies from county to county. To see what the limit is in the county in which you're interested, visit the following site ttps://www.efanniemae.com/sf/refmaterials/loanlimits/. 

This site lists U.S. territories as well as states.

Maximum financing: Depending on the state where the property is located, the maximum Conventional Mortgage amount will be 80% - 95% of the appraised value of the home or its selling price, whichever is lower.

What Kinds of Loans do Conventional Programs Offer? 

Fixed rate loans - Most Conventional Mortgages are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same for the entire loan period. With a fixed rate Conventional Mortgage, you always know exactly how much your monthly payment will be. Contact us for today's free Conventional mortgage rates.

Adjustable rate loans - With a conventional adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. Conventional Loans mainly use the Constant Maturity Treasury Index (CMT) or the London Interbank Offered Rate Index (LIBOR) to calculate the changes in interest rates. Conventional ARMS are offered with initial fixed rate periods of 3 years, 5 years, 7 years and 10 years.

• Conventional Mortgages are ideal for borrowers with excellent credit and a substantial down payment.
• Conventional Loans use income expanded qualifying ratios.
• There are no prepayment penalties for an Conventional Conforming Mortgage.
• A Conventional Loan can be used for the purchase of a Primary Residence, Second Home or Investment Property.
• A Conventional Mortgage is available all areas of the country, provided a market exists for the property and the home meets minimum property standards.
• A Conforming Loan may be used to purchase or refinance a new or existing one to four family home in urban and rural areas, including manufactured homes on permanent foundations.
• Conventional Mortgages are offered at terms of 10, 15, 20, 25, 30 and 40 years. The terms of 15 and 30 years often carry the lowest interest rates.

·         Home Loan Comparison

·         What home loan options are available for my circumstances?

Conventional Loans - Ideal for Borrowers with Excellent Credit and a Substantial Down Payment
Conventional Home Purchase Loans are more credit score driven than other loan types and at least a Conventional Loan guidelines are currently written in a way that a borrower with a 740+ credit score can usually obtain the best interest rate possible. As a borrowers credit score decreases below a 740, sizable fees and rate increases could be added, in excess of the 1-2 percent range. If your credit score is less than perfect, an FHA Loan, USDA Loan or VA Loan could be the best home loan for you.

FHA Loans - Could be the Best Home Loan for Borrowers who have Less Than Perfect Credit and a Small Down Payment  FHA new home purchase loan requirements are not totally credit score driven. FHA mortgage guidelines are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they're generally going to be credit-eligible for an FHA mortgage.

USDA Loans - Could be the Best Home Loan for Those who have Less Than Perfect Credit and a No Down Payment
USDA Mortgages have no down payment requirement. Other house loan programs don't allow this. Another distinct advantage of a USDA loan to purchase a home, as compared to a conforming loan, is great interest rates and no mortgage insurance (MI). In general a 620 FICO score is required to obtain a USDA loan approval,

·         VA Loans - Could be the Best Home Loan for Veterans of the US Armed Services VA Home Purchase Loans in recognition of the contributions and sacrifices veterans have made for America. VA Loans require no down payment and no mortgage insurance. In general a 620 FICO score is required to obtain a VA loan approval. 

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Learn more about Conventional Loans, FHA Loans, VA Loans and USDA Loans.

·         How do I choose the best home loan for my situation? Choosing home mortgage loans is a very personalized process. 

Is it a "corruption" or “correct option”?

Before I begin writing anything, I would like to make sure that I am not against the current agitation brought in to lime light in India by a great personality followed by great dignitaries, but I am against the route it has been taken.

Now a day, every person is coming out with a concept of hunger strike and diluting the value, importance and true meaning of it, which was initiated during the pre and post independence days of India. I have couple of things to bring forward to the people of Indian origin. Are we (as normal human beings) choosing the “correct option” of getting the work done or “corrupting” the people who has an authority of doing the things for us? Which is the right option? By finding an answer you solved half of countries problem.

We are all tuned to a particular system where we want the things to be done in a quicker manner with least patience of waiting for the things to take its normal time, and during this process; we never think about what are we doing? There by we feel that we are showing some mercy on the clerk/officer who would be doing our work and pay them some tips. Is it not the root cause of today’s problem? Is it not you and me who would like to pay some money to the political leaders to get our things done? When it comes to an individual, one treats it as a consultation fee. When a below average person cannot afford to pay that so called consultation fee, he calls it as bribery. The seed of today’s corruption been laid by us and now we want to cut the top of the tree (politicians and political system) without cutting the roots which is at the lower lever right from an attendant to the higher authorities. Just think of the Newton’s law of motion and relate it to this scenario. When there is a person to give money (bribe) always there is another person to accept it. Give and takes “go hand in hand”. So when there is no giver, then there is no taker. Taker is not corrupted; giver is the most corrupted who thinks that he/she choosing the correct option.

It surprises me when people who says that I support the current agitation started by Mr. Anna Hazare by just clicking “I like” button on face book or any other social media. Will this really help? In fact, it worries me more when some group of people coming forward with some “xyz” name and collecting the funds in support of the agitation which is a biggest corruption.  Another thing surprises me when people talk big about this agitation who are most corrupted by themselves. There are some Indian media networking groups doing a business in abroad with corrupted minds and acts holding some rallies and “meets” and collecting the funds to support the agitation. Beware of such organizations and curb them which should be first act of going in a positive direction of eradicating the corruption. No one needs money to support the agitation but our own action in person.

So, start a new dimension of eradicating the corruption by choosing not to pay any “Bribery” and fight against the person who is paying such bribery or so called consultation fee. First it should start from you and only you and then spread to the whole society and country. We are living in the society where poor is becoming poorer and rich is becoming richer. Bring a new light of sharing things with poor people and volunteer in helping them to grow in whatever possible way you can. Let us bring a Gandhi, Mother Theresa in our own life and be helpful to the society in doing good things.

Feel the difficulties as Challenges to be Successful in life.

To everything there is a season and a reason and also there is a time to every purpose under the heaven. I always think that one who feels that he/she is happy will be happy for ever and the one who ever cries or feels that he is unhappy will always be unhappy and keep crying. One who complains about lack of something will always be complaining in life and never be satisfied and also the one that thinks he is the wisest is generally the greatest fool.

We all come across the difficulties or problems in our life. Some get them at early age and some get them at later age. The difficulties can be of any thing and of course it varies from person to person. For one person the easiest thing can be a difficult thing for other.

• For some of us it is financial.
• For others it is the loss of a loved one.
• For some it is marital disharmony.
• For some understanding a particular subject of studies.
• For some playing a game
• For some any new tasks

I have seen many students or people who give up the things so easily when they see any difficult things in their day to day activities. I always think that the difficulties are opportunities to better ourselves in that particular thing and in fact, I feel that they are stepping stones to greater experience.  Perhaps someday we will be thankful for some temporary failure in a particular direction.  We always think that we have some difficulties in life: that thought itself is a biggest problem and the illusion is a biggest enemy of happiness. I personally feel that the acronym of DIFFICULTIES ends with Success. 

Distinguish: differentiate it from other things. How tough is it to handle and discover why it is so difficult
Initiate the thinking process.

Fear not the situation to face it.
Follow your inner consciousness and the mind rather than foreign elements and

Ignore them if they are blocking your mind. 
Control your emotions

Understand the situation and remember that life is full of challenges and hurdles.

Learn new ways to handle those challenges.

Tactfully handle the situation

Imagine the success

Enjoy the moments of that situation

Success will follow you.

In life always remember that when one door closes, God will open another for us. But it does not mean that you need to wait for the door to be closed. I say that try not to let the door be closed and try to overcome that difficulty because; the happiness we get when we overcome that difficulty is beyond description in words. 

I have seen many people who enriched their knowledge and learnt better from their difficult times rather than before and in fact, the difficult times have helped them in their lives in various ways. I always say that life is not as smooth as we think and I also say that life is not as difficult as one thinks. In fact, life is rich and beautiful in every way. 

We all want a life without difficulties but think of the precious metals how are they made to look so beautiful? Diamonds are made under pressure so as gold which is extracted from quartz. So the more tough life we come across in life, or more difficulties we come across in life, we would be sharper and will be more perfect. 

Remember that challenges or difficulties in life always help us discover who we are but it is not to paralyze us. A simple example to quote related to this is motherhood. It is such a pain to carry a baby in her womb for 9 months and is more pain during the delivery of a baby to the outer world but the amount of joy a mother gets after successfully delivering the baby to the world is beyond expressions. So, one cannot get through life without pain and difficulties. Difficulties are intended to make us better not bitter. Bitter things are always better in life. Take the example of Bitter guard, it is bitter in taste but for diabetics, it is a great medicine.

If we do not struggle with problems or some form of challenges, both physical and mental, on a regular basis, our abilities and our talents weakens and it will be like a death or way to it and there isn't enough left of us to maintain our health because our immune system needs a good workout. Those who do not exercise their brain regularly fall into senility. These are proven facts. For most of us, these failures of our physical and mental abilities in middle and old ages are preventable. Our emotional development is equally designed for hurt as well as for joy. Those who do not experience much in the way of emotional hurt during their lives do not develop an equal scope for joy and happiness when it presents itself. Emotions are like a pendulum, they swing as far one way as the other. If development of emotions is weak in one direction, it fails to develop much in the other. 

People who experience great tragedy and hurt also have the ability to experience joy far greater than those who have "sailed through life." The best example is Japan. We have lots of things to learn from them. The will power and determination and dedication is key to their success. Don't curse your problems. They give you the opportunity to live life to the fullest, to experience happiness and fulfillment. Without them, your life would be relatively dull. No one says you should enjoy your problems. That would be a psychological problem in itself. But you can face them with some degree of calmness knowing that they will pass and happiness will be available to you in the future. 

God will allow difficult times whether they are spiritual, physical or relational problems as a means of accomplishing His purposes. These challenging times will often bring a person to the end of himself and remind him of these great truths. “God is looking for those with whom He can do the impossible-- what a pity that we plan only the things that we can do by ourselves.” Most of us turn to God and ask him to save us from difficulties rather than asking him to give strength to face those in a better way. This reminds me a great quote by Rabindranath Tagore which says that Let me not pray to be sheltered from dangers, but to be fearless in facing them.  Let me not beg for the stilling of my pain, but for the heart to conquer it."  

Obstacles come to instruct, but not to obstruct."

Where there is a problem there will be a solution and where there is wisdom there is happiness. So overcome your difficulties and be successful in your life with more happiness and joy.

Be True to your principles and the rest will be taken care by God.

What for am I living? What is going on in my life? How long should I live like this? Why God has given me all these tasks? In one way or another it seemed that people had been asking this forever. Is there any straight answer to this question? Is there anyone who is perfect in all aspects of life? Is there any person who gets everything the way one wants in life? Does God tests everyone in the life? Oh boy looks I am going deeper in thoughts. But for sure I believe in God and he is the beginning and end for each and every thing in any one's life. I want to place him first before anything in my life. I believe only in one principle which is “be true to your principles and the rest will be taken care of by God”.  Live each day as if it's your last. Better by far to be good and courageous and bold and to make difference. Not change the world exactly, but the bit around you. Live passionately and fully and well. Experience new things in life in new way. Love and be loved, if you ever get the chance.