Comparison of Loan Programs: Conventional, FHA, or VA or more than one

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  1. Financing is available to veterans and nonveterans.
    conventional and FHA
  2. Financing available only to veterans and certain unremarried widows and widowers
    VA
  3. Financing for one-family to four-family dwellings: owner-occupied or investor loans
    conventional
  4. Financing programs are for owner-occupied (1-4 family), residential dwellings.
    FHA
  5. Financing is limited to owner-occupied residential (1-4 family) dwellings; must sign occupancy certificate.
    VA
  6. Generally requires a larger downpayment than the FHA or VA
    Conventional
  7. Requires a larger down payment than VA
    Conventional, FHA
  8. Normally does not require a downpayment
    VA
  9. Requires appraisal by a licensed or certified appraiser.
    Conventional
  10. Requires appraisal by a FHA-approved appraiser
    FHA
  11. Issues a Notice of Value (NOV) based on an appraisal by a VA-approved appraiser.
    VA
  12. Maximum loan based on the lesser or the contract sales price or the appraised value; buyer may pay in cash the amount exceeding appraised value.
    conventional
  13. FHA valuation sets the maximum loan FHA will insure but does not limit the sales price; buyer may pay in cash the amount exceeding appraised value.
    FHA
  14. The VA loan may not exceed the appraised value of the home; buyer may pay in cash the amount exceeding appraised value.
    VA
  15. No prepayment penalty if interest is 12% or more.
    conventional
  16. No prepayment penlty
    FHA, VA
  17. On foreclosure, the lender receives the amount of insurance coverage and sells the property.
    conventional
  18. On default, foreclosure, and claim the FHA lender usually gets U.S. debentures
    FHA
  19. Following default, foreclosure, and claim, the lender usually receives cash.
    VA; if VA elects to take the house
  20. Insures loan over 80% LTV with private mortgage insurance (PMI), payable to buyer in cash or added to note.
    Conventional
  21. Insures the loan by way of mutual mortgage insurance; UFMIP payable at closing by buyer or seller; annual MIP paid monthly in the house payments.
    FHA
  22. Guarantees loans according to each veteran's personal entitlement
    VA
  23. Second-lien financing is permitted concurrently with first lien as long as minimum down payment requirements are met.
    Conventional
  24. No secondary financing is permitted until after closing
    FHA
  25. Secondary financing is permitted in exceptional cases.
    VA
  26. Buyer may pay loan origination fee and discount points.
    Conventional and FHA
  27. Buyer may pay discount points but cannot finance them in the loan. Buyer may pay up to 1% as a flat charge origination fee to the lender. A funding fee must be paid to the VA in addition to other fees; it may be paid by the buyer, it may be paid in cash or added to the note.
    VA
  28. Loans are generally nonassemable; a lender may permit assumption with a qualified assumptor
    conventional
  29. Loans made prior to 12/1/86 are fully assumable; seller remains liable until loan is paid off. Loans made between 12/1/86 and 12/15/89 are fully assumable after 12 months on owner-occupied loans; seller remains liable for 5 years. Loans made since 12/15/89 require prior approval of assumptor; seller is released from liability.
    FHA
  30. Loan can be assumed without VA approval for loans made prior to 3/1/88; otherwise, approval is required. For loans originated after 3/1/88, release of liability is automatic if VA approves the assumption.
    VA

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Author:
Blue2xa88
ID:
321951
Filename:
Comparison of Loan Programs: Conventional, FHA, or VA or more than one
Updated:
2016-07-17 01:47:39
Tags:
loan program comparison
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is the question referring to conventional, FHA, or VA or more than one.
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