DiscoverMilwaukee2017 - page 69

CONVENTIONAL
MORTGAGES
A conventional mortgage is not
guaranteed by the government.
Conventional loans with a down payment
of less than 20% typically require private
mortgage insurance (PMI), which protects
the lender if the homeowner defaults.
FHA-INSURED LOANS
The Federal Housing Administration
(FHA) offers several low down payment
mortgage products for eligible
participants. FHA-insured loans are
available from most of the same lenders
who offer conventional loans. For more
information about these loans and
eligibility requirements, please contact
your lender or visit the Housing and
Urban Development website at
hud.gov/fha/loans.cfm.
VA-GUARANTEED LOANS
If you are a veteran of military service,
reservist, or on active military duty, you
may qualify for a loan guarantee from the
Department of Veterans Affairs. These
loans require minimal down payment.
ADJUSTABLE-RATE
MORTGAGES (ARMS)
With an adjustable-rate mortgage (ARM),
the interest rate changes periodically.
They are typically characterized by the
amount of time that must pass before
the rate can be changed (1, 3, 5, 7 or 10
years, for example). Rates are generally
lower than fixed-rate mortgages, but
ARMs carry the risk that an increase in
interest rates will lead to higher monthly
payments.
Home Inspections
Lenders may or may not require that you
have your prospective home inspected by
a professional before they approve your
mortgage, but it’s a good idea, even if
they don’t. Home inspections, which
typically cost between $250 and $600,
can reveal structural problems that may
impact the selling price and/or your
interest in the home. They can also help
you identify a “to-do” list of projects for
you to tackle once you have moved in.
Home inspectors are licensed by the
state. Under Wisconsin law, building
inspectors are liable for damages that
arise from an act or omission relating to
their inspection. In addition, they are
prohibited from performing any repairs,
maintenance or improvements on the
inspected property for at least two years
after the inspection has occurred. They
also are prohibited from telling the
market value or marketability of a
property or whether you should purchase
the inspected property. For more
information about the state’s home
inspection regulations or to check the
status of an inspector’s license, please call
(877) 617-1565 or visit
drl.wi.gov.
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FINANCING
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insurance, if applicable, will be required on collateral. Member FDIC. Equal Housing Lender. (1/17) 9764
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