Somerset Mortgage Lenders Mortgage Refinance, Reverse Mortage, Home Loan
  Reverse Mortgage Divorce Buyouts Debt Consolidation Home Improvement Purchase Refinance
Search Somerset:
Print this page    E-mail this page

CT New Home Financing in Connecticut

Somerset Mortgage Lenders can find CT residents the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help CT residents match your needs with a loan you’ll love for as long as you own your home. Somerset Mortgage Lenders can find CT residents the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help you match your needs with a loan you’ll love for as long as you own your home.

Fixed Rate Loans

Several categories of conventional loans exist, the most common and familiar being the fixed rate mortgage. In the cases of fixed rate mortgages, the borrower will lock in an interest rate, and pay down both the principal and interest on the loan at that interest rate every month until the mortgage is paid off. The most typical term of a fixed rate loan is 30 years, though fixed rate mortgages can also be obtained for much shorter terms, the primary difference being in the size of the monthly mortgage payment.

Conforming Loans

Other conventional loans are known as conforming loans. In these cases, an arrangement is made between borrower and lender that comply with the stipulations of two federally run mortgage trading companies (or Government Sponsored Entities - GSEs) Fannie Mae (FNME) and or Freddie Mac (FHLMC).

Fannie Mae and Freddie Mac do not directly approve or deny loans. They buy and sell home mortgages, working with lenders to make home ownership easier for people to attain. Lenders like to sign up borrowers with conforming loan, because they can then sell these loans to Fannie May or Freddie Mac in order to more quickly receive the funds coming to them, and use those funds to make other investments. Fannie Mae and Freddie Mac, in turn, then repackage these loans to sell to investors as securities.

The current guidelines for a conventional Fannie Mae loan set a maximum purchase price for a single-family home at slightly above $415,000 (though residents of Alaska, Hawaii, or Guam may be able to qualify for an even larger loan).

The interest rate as well as the short- and long-term pricing on a conforming loan is determined primarily by the type of loan applied for. Also taken into consideration will be the amount of funds you already have to contribute to closing costs, your credit rating, credit score, and credit history, your employment history, and the type and location of the home in question.

Jumbo Loans

Other forms of conventional loans are nonconforming loan instruments that do not meet Fannie Mae or Freddie Mac loan qualifications, such as jumbo loans, or loans so large they fall outside the Fannie Mae and Freddie Mac loan limits (or purchase limits). Jumbo loans are provided by private investors and as such ordinarily come with much higher interest rates than conforming loans.

FHA Loans

Government entities from a local to a federal level and private entities alike have worked to develop loan programs that make home ownership a reality for many people considered under-qualified for traditional mortgages. These include loans for first-time homebuyers and people with a low-to-moderate income that are insured by the Department of Housing and Urban Development (HUD) via the Federal Housing Administration (FHA).

HUD and the FHA do not make loans directly, rather they insure loans, meaning that the lender still gets paid back even if you default on the home loan. Often, FHA insured loans are available with down payments lower than 3% of the total loan amount. There is a limit to how high of a loan the FHA will insure, but the limit is at least high enough to allow people in qualifying circumstances to buy reasonably priced homes pretty much anywhere in the country.

Subprime Loans

A different type of loan was also created to assist people with poor credit in buying a home. These are called Subprime Loans. A subprime loan may come in various forms depending on the loan amount, loan terms, and loan-to-value ratio. Your risk is still determined by grading your credit, but in the case of a subprime loan it is to determine the type of loan and interest rate offered you rather than whether or not to give you a loan at all.

Local new home financing directory for CT :
Abington Andover Ashford Avon
Amston Ansonia

Return to our new home financing page

Bad Credit? click here.

Call for COMPLETE details NOW!

(800) 675-9783

Connecticut News
State Police Make Arrest in Domestic Assault /Attempted Felony Murder

On 09-03-08, at approximately 8:58 a.m., State Police, Troop D, received a report of a vehicle vs.

Conn. trash hauler sentenced to 7 years in prison - AP

A Connecticut trash hauler accused of having links to the Genovese crime family has been sentenced to more than seven years in prison after he admitted to witness tampering, accepting kickbacks and trying to ...

Conn. lawmakers launch heating aid Web site

Connecticut Senate Democrats have set up a new Web site to make it easier for state residents to get information on home-heating assistance programs.

State Police Investigate New Fairfield Armed Bank Robbery

Today 09/02/08 at 10:07 a.m. Connecticut State Police received a 911 telephone call reporting that a bank robbery had just occurred at the Savings Bank of Danbury Rt.

President Bush Will Address Convention Tonight

Republicans say President Bush will speak to Republican National Convention delegates by satellite Tuesday evening.

Tourist Spots Report Flat Or Lower Visitor Numbers

Operators of several Connecticut tourist destinations say attendance was flat or slightly down this summer, despite the state's campaign encouraging residents to visit the local attractions.

Fighting a Traffic Violation in Connecticut

You hear the siren and see flashing lights and your heart thumps. The police are pulling you over and give you a citation.

Connecticut cities still struggle with poverty

Although Connecticut ranks among the wealthiest states in the nation, its major cities continue to lag far behind financially, according to U.S. Census Bureau data released Tuesday.

The Top Breakfast and Brunch Restaurants in Middletown and Cromwell Connecticut

There are many restaurants that are known for serving breakfast and brunch in the Cromwell and Middletown,Connecticut area.

Connecticut Won't Punish Lawyer Over False ID In Plofsky Matter

State officials plan no disciplinary action against Maureen Duggan - a state agency lawyer who posed as an anonymous parking lot attendant in 2004 when she wrote a letter that led to the firing of then-state ...

Abinanti proposes height bars to keep trucks off parkways

The best way to stop tractor-trailers from slamming into parkway overpasses, County Legislator Thomas Abinanti figures, is to block them from getting on the restricted roads in the first place.

Senator wants all schools to open on same day

The co-chairman of the legislature's education committee doesn't want Connecticut schools open before Labor Day.

Bridgeport Resident Contracts West Nile Virus

A Bridgeport senior citizen has tested positive for West Nile virus. The Bridgeport resident is over 80 years of age, and became ill during the second week of August with encephalitis, which is an inflammation ...

EDITORIAL: Don't lower drinking age

The more than 100 college presidents, including six in Connecticut, who want the drinking age dropped to 18 are trying to wish a problem away by passing it on to others.

Steel Point project could miss deadline

Bridgeport's Steel Point redevelopment project appears to be in jeopardy, but the mayor said he believes the deal to build the $1.5 billion waterfront complex is still alive and well.

Connecticut Sets Example for Teen Driver Safety

Teen drivers die in fatal motor vehicle crashes at a rate which is three times for drivers ages 35-49. Hence, motor vehicle crashes remain the number-one killer of children under the age of 18.

Workers push laws requiring paid sick days

His employer does not offer paid sick days, so if he can't shake the bug, he may not be able to pay his bills.

Connecticut Legislators Hear Testimony On Energy Aid

Debbie Bourbeau is trying to help her 91-year-old mother stay warm this year. With home heating prices threatening to reach as high as $5 per gallon, Bourbeau is scrambling for ways to pay the oil dealer.

Rep. Shays, McCain co-chair in Conn., refers favorably to Obama in campaign commercial

Rep. Christopher Shays, who co-chairs Republican John McCain's campaign in Connecticut, is speaking favorably about McCain's Democratic rival Barack Obama in a new TV ad for Shays' own tough re-election fight.

Conn. lawmakers to consider extra heating aid

Connecticut lawmakers returned to Hartford on Friday to consider increasing state emergency fuel aid this winter because of high heating costs.

Save time with our easy online mortgage application.
With Somerset's many FHA home loan programs, owning your dream home is more than just a dream.
"I prayed day and night for a miracle...In less than a week, (Somerset) was able to stop the foreclosure and get a new mortgage for me. It was the best of times...I have Somerset Mortgage Lenders to thank until eternity for the miracle they were able to make come true." - Diane B.
© 2006 Somerset Investors Corp. All rights reserved.
home | about us | Mortgage Blog | contact us | privacy policy | state licensing | search | links | link to us | site map
mortgage calculators | refinance | purchase | fha | reverse mortgage | divorce buyout | debt consolidation
Eqaul Housing Lender Member of the Better Business Bureau (BBB) Member of the National Reverse Mortgage Lenders Association (NRMLA)