Alex:. All right, friends and family. Once again, you caught me. It's Alex Ortiz with Sunset Homes Real estate, here with another episode In regards to financing today. I have my good friend, Gordon Cooper from New American Funding, and we're going to talk about government insured loans. I'm sure that many of you have heard of these. What's the first one? The big one that everybody always talks about?
Gordon:. The big one that everyone talks about is FHA.
Alex:. FHA, federal housing administration.
Gordon:. federal housing administration.
Alex:. Now tell us a little bit about this loan.
Gordon:. The federal housing administration loan, FHA, It is designed not only for first time home buyers, but it is designed for anybody who may have situations where they don't qualify for a conventional loan.
Alex:. No, no, I think that's, a big misconception. I think a lot of people have that, FHA is just for first time home buyers. Is that right?
Gordon:. That is a misconception.
Alex:. Yeah. And you know what, I was, I was, I was misinformed until I talked to this handsome young man right here. And he enlightened me on the possibilities for, uh, the FHA loan. Um, FHA loan to be, uh, I'm lost for words, but it can be helpful for, uh, several types of people. A first time home buyers or people who've already purchased a home in the past.
Gordon:. Yes. And they're much more lenient. They actually are more forgiving when you might have had some credit challenges and their interest rates are exceptionally low considering, what rates could be on every everybody's FICO scores.
Alex:. Now the FHA look it's like qualifying for FHA changes from time to time, Correct?
Gordon:. The changes are actually the changes are it, is easier to qualify, if you have to buy a higher house payment. They allow you to take a higher percentage of your income to, for your housing and for all of the rest of your debt. And being that they're insured federally insured as a lender, all we need to do is follow the guidelines. If we follow the guidelines, we are allowed to test that loan, pass it to the, to the, uh, lending institution. And then therefore, as long as we follow that loan, no problems in the future. Even if you happen to have challenges.
Alex:. There you go. So that was some good information on the FHA loans, a government insured loan. Now, the second loan that I think is most popular is the…
Alex:. VA loan. Can you tell us some…
Gordon:. Veterans administration.
Alex:. There you go.
Gordon:. First of all, that tells you something right there. You have to be a veteran or an active duty person and you have to [unintelligible] married to the veteran in order to help you buy that house. Beauty of that low, zero down payment. absolutely zero down payment can be done. We could set that up and Alex would be able to get you some closing costs, which is a detail we'll get into later. But if you're a veteran and you've never taken advantage of this, this is a time to talk. Rates are super low and the advantages that everybody out there wants to sell their house, they get 100% of their money. It doesn't matter if you're bringing in $500,000 or zero as long as they get 100% of their money.
Alex:. That's great. That's great. So once again, those were two loans there that are very popular, government insured loans, which is your FHA loan and your VA loan. Once again, as always, before you start looking or house-hunting, make sure that you contact your loan professionals, that they can go through the details and the numbers with you. so that when you find that dream home, nothing's a shock. And you guys gonna write that offer go right in and do the best you can. So did we miss anything?
Gordon:. No, I think we covered it all.
Alex:. I think we covered it all. So obviously there's a little bit more detail, but that's the basis of it. Once again, my name is Alex Ortiz from Sunset Homes Real Estate. And this is…
Gordon:. Gordon Cooper New American Funding.
Alex:. All right. Every one of you guys have a great week. Talk to you later. Bye.