Government loan programs

FHA loans

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 to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

FHA loan programs are particularly beneficial to those buyers with less available cash or equity, but want a low, fixed mortgage.  The rates on FHA loans are generally market rates, while down payment requirements are lower compared to conventional loans.

Some of the other benefits of FHA financing:

• Only a 3.5 percent down payment is required.
• Closing costs can be financed.
• Lower monthly mortgage insurance premiums
• More flexible underwriting criteria than conventional loans
• Loans are assumable to qualified buyers.

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.  Being located near Joint Base Lewis McChord, we specialize in helping active duty and military veterans acheive their goal of homeownership.  The city of Dupont and also Lacey are frequently chosen communities to purchase within as they allow easy access to Fort Lewis.

Other benefits of a VA loan include:

• Closing costs are comparable and sometimes lower - than other financing types.
• No monthly private mortgage insurance
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by a buyer.
• Zero Down Payment Requirement

Although mortgage insurance is not required, the VA charges a funding fee 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.  Eligible veterans who receive 10% disability or greater, are exempt from the VA funding fee.

A VA loan can be used to buy a home, and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Wave Lending is a VA specialist, equipped with the latest technology and knowledge to make the lending process a smooth one.  If you want your business local, want to deal with experts, and want to be able to access your mortgage professional when needed, then you have found the right lender for you. 

USDA Loans 

The USDA home loan program allows eligible borrowers to purchase a home with zero down payment.  There are income limitations that the household income calculations must fall within, and there are specific geographic limitations to where you can purchase a home and finance through USDA.  This program has competitive rates, without the requirement for monthly mortgage insurance.  Currently, the USDA funding fee is 3.5% of the loan amount and can be financed into the loan.  This loan is not for everyone, but if the house and the buyer fit within the guidelines, this can be a great option.