Understanding your mortgage options
If you’re looking at getting a mortgage, there are a number of different options to consider. From government-backed mortgage programs to assistance with down payments and closing costs, here’s what’s available.
- FHA mortgage insurance helps protect the lender (not the borrower) if a borrower defaults on the FHA loan. Each FHA borrower pays a Mortgage Insurance Premium. The premiums are collected and used by the FHA to reimburse the lender (not the borrower) should the borrower default and the lender must foreclose upon the loan/sustain a loss. Similarly, the VA guaranty helps protect the lender (not the borrower) against loss if the borrower fails to repay the VA loan. Borrowers pay an upfront funding fee towards the VA guaranty.