Government Loan Programs

VanDyk Mortgage is a privately owned full service Mortgage Banker approved with Fannie Mae as a Seller/Servicer, the VA and licensed by the U.S. Department of Housing and Urban Development as a Full Eagle FHA lender.  This distinction allows us to offer great 30 year fixed interest rates with low down payments and flexible credit and income requirements.

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD).  The FHA does not loan money directly to borrowers, but provides lenders protection through mortgage insurance (MI) in case the borrower defaults on his or her loan.  FHA loan programs are designed to help creditworthy low and moderate-income families find an affordable path to home ownership. 

Some of the benefits of FHA financing:

• Only a 3% down payment is required.
• Down payment can be gifted from family or from assistance programs.
• Closing costs are typically less than on conventional loans.
• Closing costs can be paid by either the buyer or the seller (negotiable). 
• Lower monthly mortgage insurance premiums than conventional loans.
• More flexible underwriting criteria than conventional loans.

FHA loan programs are particularly beneficial to buyers with lower cash reserves or rough credit. The rates on FHA loans are generally market rates and down payment requirements are lower than for conventional loans.  As mentioned this down payment can come from gifts or through down payment assistance programs. 

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans.  The guaranty means the lender is protected against loss if you fail to repay the loan.  It also means that there is no monthly mortgage insurance (MI) premium.  In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate and easier qualication requirements than is available with other loans.

Other benefits of a VA loan include:

• No downpayment requirement.
• Closing costs are comparable and sometimes lower than other financing types.
• Closing costs can be paid by either the buyer or the seller (negotiable).
• No private mortgage insurance requirement.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee (exceptions under certain conditions) to issue a guarantee to a lender against borrower default on a mortgage.  The fee may be paid in cash by the buyer or seller or it may be financed in the loan amount.  A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.