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What type of loan do I qualify for?

Good question! There are thousands of types of mortgages, and there are thousands of financial institutions that offer mortgage financing. It used to be that the local banker was the only one that a person could get a home loan from. Not anymore, people are competing to get your business.

With internet access, you can shop for a loan from your home or office. Listed below are some mortgage terms and definitions of mortgage loans.  I hope this will help you better understand the process a little better.

What Is A Secondary Market Loan?

This is when a bank or mortgage broker originates a loan and prepares all the necessary documents to meet loan requirements and then "sells" the loan to another lender sometimes before closing, at closing, or later. Another name for selling a loan, is servicing a loan. One company sets up the loan, another company handles the payments and such.

The terms and requirements for the loan, no matter who services, have to remain the same. Same loan amount, same interest rates, same amount of payments, the only thing changed is the name and address to where the payments it to be sent. How do you know if your loan has been "sold", they notify you by mail. Keep a current address with the mortgage company so that you will receive all necessary announcements.


It's an important part of buying a home. You need to know what to expect and do before you go look for your new house.

Additional Information can also be found in the good and bad credit areas by clicking on the buttons below.

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What kind of government loans are available for buyers?

There are several government loans, such as FHA, VA, FmHA, Rural Development, and others.

Each type has their own requirements and your lender can help you decide which loan works best for you. What do they look at to determine if you qualify? Credit Score, Income, Work History, Bank info.

How much do you have to put down?

It depends. FHA is now 3.5% of purchase price. All VA loans have special requirements such as funding fee, eligibility, previously used VA loan, re-certification after selling of former home, please look at their website. There is one kind meant for first time homebuyers. It is called a Rural Development loan, R.D. Loan, or FMHA loan. Rural Development is a program where you can finance your closing costs into the loan, if the property will appraise for the higher amount. Properties also have to qualify for certain types of loans. R.D. loans used to have a strict inspection to qualify a property. They have since then dropped most of the requirements.

How do you know if a property qualifies?

They have inspectors/appraisers that are trained to follow strick guidelines and will be able to tell you quite easily, or if it doesn't meet the qualifications, the will provide you with a list to make it qualify if you want to.

Who pays for the repairs?

Sometimes they can be added into the loan if the appraisals will support the new price, or sometimes the seller will do the repairs, and  every once in a while, the buyer will pay for the repairs since it will be directly helping him on the value of his new home, and will lower his energy consumptions saving him from high utility bills.

Call, email, fax me, facebook me, twitter, Yahoo Message me, face-to-face, whatever your favorite way is to communicate I'm here to help!

American Dream Realty
701 East Main

Suite 1
Russellville, AR  72801

Cell: (479) 857-1041
Office: (479) 967-6969
Fax: (479) 967-2983

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Cindy Walker is a member of the National Association of REALTORS®