Many people wonder what the difference is between Conventional home loans and government backed home loans. This is something that has changed over the years, to the benefit of home buyers.
Conventional loans, those via Freddie Mac and Fannie Mae, are now in competition with the government back loans such as FHA, VA, and USDA.
One major difference is that with conventional loans, the loan applicants credit score is taken in to consideration when determining the interest rate and amount, if any, of PMI (Private Mortgage Insurance). This is not the case with government backed loans.
One facet of the government backed loans is the requirement for a government inspector/appraiser to personally visit the property to evaluate it's condition. They look for many things including peeling paint, cracked glass, water leaks, foundation problems, etc. What they are after is identifying anything that could cause harm to the buyer.
It's important to remember that the FHA/VA appraiser is NOT a home inspector and does not assume any liability for his appraisal. It's still very important that a buyer have their own professional home inspection done to protect themselves.
Any good Realtor should be able to recognize whether or not a home should be able to qualify for a government backed loan.
Finally, currently, government backed loans should take not longer to process and close than conventional loans.
For additional information regarding these loans you can contact Laurie at:
Grande Financial Inc.
3550 Briarfield Blvd. Suite 400
Maumee, OH 43537
To search for homes, visit: http://homesearch.toledoareahomes.com...
Kelley Knitz has been a RE/MAX agent for over 26 years and is in the RE/MAX Hall of Fame and is a long time member of the Toledo Board of Realtors Million Dollar Club.