RFA Capital Corp. provides options for purchasing a new home – whether a conventional, FHA or VA loan – or refinancing an existing one. We also broker Home Equity Lines of Credit (HELOC), second mortgages, commercial loans and reverse mortgages. Every loan is different due to each borrower’s unique goals, needs and circumstances.
Buying A House
Whether you’re determining how much of a house you can afford or estimating your PITI ( principal , interest, taxes, and insurance payment) with our Mortgage Calculator below, or if you are looking to prequalify a mortgage, we can help you in any part of the home buying process.
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A conventional loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). It is typically fixed in its terms and rate. A conventional mortgage loan is the most common way to obtain financing.
With a refinance you can consolidate debt, reduce the interest rate – which reduces your monthly payment – or, cut the amortization (length of loan) – which saves significant interest costs.
An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time homebuyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender in the event the borrower defaults.
A Home Equity Line of Credit acts like a credit card against your home. You don’t make payments unless you draw cash from it. HELOCs are generally used for home improvements, debt consolidation or to invest in additional property.
Private money, also known as hard money, is another type of financing predominately used for investors or individuals buying and selling properties. Typically private money is used when the borrower isn’t able to obtain conventional financing. This type of financing is for specific situations and involves high risk and high interest rates.
Reverse mortgages allow elders to access the home equity they have built up in their homes now, and defer payment of the loan until they die, sell, or move out of the home. Even though there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. This loan will not benefit every borrower.