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

VA New Home Financing in Virginia

Somerset Mortgage Lenders can find VA residents the perfect loan and start your home purchase off right. With hundreds of loan programs available, we’ll help VA residents match your needs with a loan you’ll love for as long as you own your home. Somerset Mortgage Lenders can find VA 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 VA :
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Abingdon Amelia Court House Ararat Ashland
Accomac Amherst Arcola Assawoman
Achilles Amissville Ark Atkins
Afton Ammon Arlington Atlantic
Alberta Amonate Aroda Augusta Springs
Aldie Andover Arrington Austinville
Alexandria Annandale Arvonia Axton
Altavista Appalachia Ashburn Aylett
Alton Appomattox

Return to our new home financing page

Bad Credit? click here.

Call for COMPLETE details NOW!

(800) 675-9783

Virginia News
U.S. Contractors May Lose Iraqi Immunity

Employees of Blackwater and other U.S. military contractors may lose their shield from Iraqi prosecution under a new status of forces agreement.


Smart Tag Confusion Leads to Phone Sex Line

VDOT thought it had a good plan to help northern Virginia drivers switch over from Smart Tags by putting up signs with a phone number to call for information, but one dialing mistake and callers get a salacious ...


Animal Cruelty: Women who ran shelter in Virginia charged

Two women who ran an animal shelter in Manassas are facing animal cruelty charges.


Former Olympian pleads guilty to heroin charges

Former track star Tim Montgomery has pleaded guilty to federal heroin distribution charges nearly a week before he was set to go to trial.


New office coordinates programs for young children

The state Office of Early Childhood Development is coordinating programs for children from birth to age 5. Department of Education officials said Tuesday the newly created office will work with state agencies ...


Three Cheers for July Second

By Andrew Trees Wednesday, July 2, 2008; Page A15 Today we celebrate the greatest day in our national history.


Stricter underage DUI penalties highlight new laws

A Loudoun supervisor, known for being outspoken with respect to the issue of illegal immigration, is drawing criticism for comparing ... 10 comments - more ... Leesburg friends to drive 1948 Jeeps coast to ...


Fewer Virginians Hitting the Road this Fourth of July

High gas prices could keep some Virginia residents close to home over the July 4th holiday.


Rate increase for Columbia Gas

Customers of Columbia Gas of Virginia will soon see another rate increase. Chester-based Columbia says that it is raising rates for the second time in a month to recoup what it pays for natural gas.


STUDY: One in 10 Virginians is foreign-born

Demographers at the University of Virginia say that one in 10 Virginians is foreign-born. The latest study by U.Va.'s Weldon Cooper Center for Public Service notes that new arrivals account for one-fourth of ...


Arrest Made In Murder of VSU Football Recruit

Police investigating the fatal shooting of Virginia State University football recruit Lonnie Andrews Jr.


Massengill, officers endorse Warner

Democratic Senate candidate Mark Warner picked up the endorsement of the former State Police superintendent who headed Virginia's hunt for snipers in 2002 and led last year's review of the Virginia Tech ...


Va. Catholic bishop sorry after abortion mixup

Catholic leaders in Richmond are apologizing after a mix up enabled a 16-year-old illegal immigrant in a Catholic charity's care to get an abortion with help from charity staffers.


Southern Shores provides fire chier with paycheck

Bob Harvey has been putting in full-time hours as fire chief in Southern Shores.


Virginia grants air permit to Dominion for coal-fired power plant

The Virginia Air Pollution Control board on June 25 granted Dominion Virginia Power the necessary air permits to construct a coal-fired power plant in southwestern Virginia, where the state has significant coal ...


Possible break at the pumps in West Virginia

Governor Joe Manchin says West Virginians can avoid a gas tax hike estimated at 6 cents per gallon come next January 1st, thanks to flush state revenues this year.


Columbia Gas Is Raising Its Rates Again

Columbia Gas of Virginia is raising its rates for the second time in a month. The average residential bill, under the new rates, will be about 35 percent higher than it was a year ago.


Big Fossil Found in Quarry

A 500-million year old fossil has been unearthed in our area. The two-ton stromatolite head was found about a month ago at the Boxley Blue Ridge Quarry.


13 Protesters Who Blocked Dominion Offices Charged

Richmond police have charged 13 protesters who blocked the entrance to Dominion Virginia Power's corporate offices, tying up Monday-morning traffic.


Parking Problems Cause Headaches In Sterling

Employees who work in the East Glenn business park off Carpenter Drive and Glenn Drive in Sterling are frustrated.


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.
 
"Our family would like to thank Somerset Mortgage Lenders for getting us out of foreclosure. Without your help we do not know what would have become of our family. When we first called, we were in Chapter 13 bankruptcy...Not only will we now be able to keep our home, but we'll be able to put ourselves on track financially, thanks to all the efforts of the wonderful people at Somerset. We will be forever grateful to you all." - Scott & Amy
© 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)