New Mexico FHA Loans
Every New Mexico home buyer and homeowner has the potential of facing the proverbial financing roadblock when it comes to a home purchase or refinance. One of the most important time periods when dealing with a New Mexico property is the initial stage of identifying the right lender that will provide thorough and accurate guidance and place you in the best loan for your circumstances.
No matter if buying or refinancing, having a knowledgeable expert who understands the loan process is critical to getting from underwriting to the closing department of the mortgage company. That means your New Mexico loan officer must understand what information you need to have, how to read that information, how to read your credit report, and also understand specifically what the underwriter wants to see in order to move your loan forward! We're confident our loan officers are exactly what NM home buyers and homeowners need to get the job done!
Avoiding high pre-payment penalties and down payments
One the financing vehicles for New Mexico real estate we like best is the FHA loan product. Unlike other loan programs, the FHA loan offers far lower down payment requirements compared to conventional loans. Plus, the FHA loan program NEVER comes with a pre-payment penalty! Just two more reasons to consider the FHA loan for financing your home!
What other benefits are there with New Mexico FHA loans?
When rates are low, the "assumable loan" factor is not so important; however, as interest rates rise, a huge selling point for homeowners becomes the fact that their FHA loan is fully assumable. So, if your buyer has sufficient cash, they can get a loan with...say 5.5% interest, instead of a loan with 9.5% or similarly high interest. Other benefits with the FHA loan program include:
- Both Fixed & ARM Options - The FHA mortgage comes with a fixed rate and a Adjustable Rate Mortgage option. Repayment terms include both 15 year and 30 year terms.
- Downpayment Gifts & Grants - Home buyers can utilize qualified grants to meet the very low 3.5% downpayment requirements. In addition, buyers can use gift funds from family members, employers, and documented long-time family friends.
- Easier FHA Loan Program Qualifying - Qualifying for an FHA mortgage is much easier than its comparable conventional loan program, thanks to the higher debt ratios allowed and more flexible credit criteria.
- Seller-Paid Closing Costs - When buying a home, your real estate professional can negotiate to have your New Mexico seller pay up to 6% of your closing costs and prepaid items such as homeowner insurance, property taxes, CDDs, etc.
How do I refinance my loans?
If you're a homeowner looking to refinance your New Mexico home, or you're considering purchasing your home using the FHA loan program, you may be making the best choice in a financing vehicle! One more benefit when financing a home using the FHA loan is the ability to streamline refinance your NM home without having to "re-qualify" for a loan! This means you can easily take advantage of lower mortgage rates that positively impact your monthly mortgage payment -- for example, you could inexpensively convert your 30 year loan to a 15 year mortgage. In addition, the FHA loan program allows for rate and term refinancing from a conventional loan to an FHA loan. If you're looking to tap the equity in your home, the FHA loan program also offers New Mexico homeowners the ability to do a cash-out refinance loan.
Learn more about the comprehensive portfolio of mortgage programs offered for New Mexico home buyers and homeowners today!