Other Loan Programs
FHA Loans
The Federal Housing Administration, known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders. America Funding is a FHA approved lender. We can assist borrowers in qualifying for FHA loans with as little as 3% down on home purchases. FHA loans permit home buyers up to 97% of their purchase price and 97% of their homes value for a streamlined refinance, or up to 95% of their home's value for a cash-out refinance.
FHA loans provide the borrower with the option to put down a smaller down payment, allowing them to have the flexibility in calculating the household income and payment ratios. Loan limits are set by counties in each state. Call an America Funding Loan Officer to help you determine the FHA loan limit for in your state and county.
VA Loans
Veteran Administration Loans, commonly called VA loans, provide assistance to U.S. Veterans with the financing for home purchases and refinancing current home mortgages. These loans are 100% guaranteed by the Department of Veterans' Affairs, making home loans more affordable for veterans, active-duty members and surviving spouses.
Currently, there are over 29 million veterans and service personnel eligible for VA financing. The America Funding offices specialize in helping military veterans qualify for a VA home loan.
Advantages of VA Loans
There are many advantages for veterans obtaining a VA loan through America Funding. Here are a few of the benefits you will receive:
- No down payment required
- No monthly mortgage-insurance premium (private mortgage insurance, or PMI)
- Reduced fees on closing costs
- No pre-payment penalties
- Growing equity mortgages (GEMs) have gradually increasing payments with all of the increases applied to the principal, resulting in an early payoff of the loan.
- The mortgage is assumable, subject to VA approval of the assumer's credit.
Reverse Mortgages
At America Funding, we understand that you have worked hard to build the equity in your home and now it's time to let that equity work for you. A reverse mortgage can provide senior Americans with greater financial security. Today, there are many seniors using their reverse mortgage to supplement social security, cover unexpected medical expenses, pay for home improvement projects, and much more.
What is a reverse mortgage?
A reverse mortgage is a home loan that lets the homeowner convert a portion of their home's equity into cash. While traditional home equity loans or second mortgages require monthly payments, on a reverse mortgage there are no monthly payments until the borrower(s) no longer use the home as their principal residence.
When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees.
The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits in your area. Generally, the more valuable your home is, the older you are and the lower the interest, the more you can borrow.
Qualifications for a Reverse Mortgage
To be eligible for a reverse mortgage, you must meet the following requirements:
- Must be a homeowner and have sufficient equity in the home to qualify
- Must be 62 years of age or older
- Must be living in the home and it needs to be your primary residence
- Your home must be a single family dwelling or a two-to-four unit property
- Some townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved
MEXICO LOANS:
Foreign nationals own land in Mexico through a trust or, "Fidecomiso", in which the foreign owner is the beneficiary and a Mexican bank is the trustee. The owner has all of the rights that an owner of property in the U.S. or Canada has, including the right to enjoy the property, sell the property, rent the property and improve the property.
Mexican Property Trusts (Fidecomiso)
In 1994, amendments to the Mexican Constitution permitted foreigners to purchase and own real estate in Mexico located within the "restricted zone" - which is all land within 60 miles of a national border and within 30 miles of the Mexican coast - though a land trust or "fidecomiso."
Under a fidecomiso, the Mexican government issues a permit to a Mexican Bank of the foreign purchaser's choice, allowing the bank to act as purchaser for the property. The bank acts as the "trustee" for the trust and the owner as the "beneficiary" of the Trust. The beneficiary rights are very similar to Living Wills or Estate Trusts in the U.S.
The law authorizes Mexican banking institutions to act as trustees. A trustee takes instructions only from the beneficiary of the trust (the foreign purchaser). The beneficiary has the right to use, occupy and possess the property, sell and rent the property and the right to build on it or otherwise improve it. The beneficiary may also sell the rights and instruct the trustee to transfer title to a qualified buyer. Many people incorrectly refer to the trust arrangement in Mexico as a lease agreement. The home or property that a purchaser buys will be put into a trust with the purchaser named as the beneficiary of the trust, not the leasee.
The initial term of the fidecomiso is 50 years, but an investor can renew the trust indefinitely for additional 50-year periods within the last year of each 50-year period, thus ensuring long-term control of the asset.
Investing in Mexico
Foreign nationals own land in Mexico through a trust or, "Fidecomiso", in which the foreign owner is the beneficiary and a Mexican bank is the trustee. The owner has all of the rights that an owner of property in the U.S. or Canada has, including the right to enjoy the property, sell the property, rent the property and improve the property.
Mexican Property Trusts (Fidecomiso)
Mexico offers the foreign investor an attractive opportunity in an economy that is undergoing dramatic improvement and growth. Following the country's inability in 1982 to service its escalating foreign debt, Mexico introduced structural changes in its economy designed to move the country toward an open economy with more direct foreign investment.
In an effort to promote foreign investment, Mexico enacted new regulations designed to relax the restriction on foreign investment, which formerly limited foreign ownership of Mexican companies to 49 percent. Under the new regulations, foreign investors can now own up to 100 percent of a large number of enterprises, including hotel and development companies, without prior authorization from the Foreign Investment Commission. Thus, foreign investors in these enterprises have been put on equal footing with local investors and are no longer required to engage a Mexican partner.
The Mexican Federal Corporate Income Tax ranges from 25 to 38 percent. Provisions in the income tax code have also been established to offset the detrimental effects of inflation on monetary assets and liabilities, inventories and depreciable assets.
Mexico will continue to offer foreign investors close proximity to the world's largest market, a solid communications infrastructure, and ample sources of energy, low labor costs, and skilled and trainable labor resources. The liberalization of the foreign investment rules is a clear indication of the very favorable attitude the government has taken toward foreign investment.
The Mexican government has stated that it aims to double the number of foreign tourist arrivals into Mexico, representing foreign exchange revenue of $5 billion plus annually. The combination of a rapidly improving economy and a stable, profitable base foretell an excellent ongoing investment environment.
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