We Believe in Low-Cost, Low-Rate VA and FHA Mortgage Loans in Dayton
At Union Savings Bank, we do everything we can to help families own a home. FHA loans and VA loans are great ways to make your dream of a new home happen. You can count on our loan officers to guide you through every step of the home buying process and treat your money as if it’s their own.
What is a VA Loan?
VA home loans are mortgage loans guaranteed by the United States Department of Veterans Affairs. The program is for American veterans, military members currently serving in the US military, reservists and select surviving spouses and can be used to purchase single-family homes, condominiums, multi-unit properties and new construction.
- No Down Payment
- No Monthly Mortgage Insurance
- VA eligibility can be used over and over (No one and done)
- Once you have VA eligibility, you can’t lose it
- Surviving spouses may be eligible
- VA loan rates are normally lower than conventional rates
- Flexible guidelines on credit scores, bankruptcy and foreclosures
- Disabled veterans may be eligible to have their funding fee waived
- Cashout up to 90% of your home value
- Streamline refinances with limited documents on current VA loans
What is an FHA Loan?
The FHA loan was created by the Federal Housing Administration in 1937 to make it easier for low and moderate income homebuyers to afford a home. This type of loan is an attractive option because it features low down payments, flexible credit requirements, and greater purchase power. If funds are limited, an FHA mortgage can help a homebuyer finance up to 96.5% of their home’s value.
Is an FHA Loan Right For Me?
If you’re looking for a home mortgage, an FHA loan may be right for you. Let’s take a close look at several of the many benefits of financing a home through an FHA loan. This type of loan is a great option for you if:
- You do not have a 20% down payment.
- You have been gifted money that you would like to use for your down payment.
- Your credit score isn’t the best.
- You would like a low fixed interest rate.
- You have had a recent bankruptcy, foreclosure, or another serious financial burden.
- You plan on paying off your house early and don’t want to face any penalties.
The Benefits of an FHA Loan
Less Money Down
FHA loans only require a 3.5% down payment for the purchase of a home. With a conventional mortgage, you may have to come up with 20% or more. An FHA loan can give you the chance to spend less time saving for a down payment and more time building equity and enjoying your new home.
Relaxed Credit Score Requirements
If your credit score is less than excellent or good, you can still qualify for an FHA loan. Believe it or not, a credit score as low as 580 is acceptable to obtain an FHA loan.
Gifted Down Payments are Accepted
Monetary gifts from your friends and family may be used toward your FHA loan down payment or closing costs.
Competitive Interest Rates
Since FHA loans are backed by the government, they typically offer better interest rates than other mortgage loans. Even if you have less than desirable credit, you can benefit from a competitive interest rate.
No Prepayment Penalties
Fees that arise when you pay off your home too quickly are known as prepayment penalties. With an FHA loan, you can enjoy the freedom of paying off your home early without any consequences.
Low Closing Costs
FHA loans allow sellers to pay up to 6% of the loan amount to cover buyer closing costs. This can give you the chance to focus all of your efforts on saving for your down payment.
Union Savings Bank specializes in VA and FHA loans. We are one of the leading mortgage lenders in Dayton, and all of the markets we serve. Our rates are great. Our FHA loan closing costs are extremely low compared to other lenders. And our expertise is unparalleled. Our loan specialists have been helping customers obtain FHA loans since the program even began in the 1930s.
You can count on us to provide you with the very best customer service and make the process of purchasing a new home as easy as possible. We’ll take the time to evaluate your credit history and financial situation and help you decide whether an FHA loan is right for you.
At Union Savings Bank, we work hard to make homeownership possible without all the stress and extra fees.