Security America Mortgage, Inc, Announces Low Down Payment Home Buying Options

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Home buyers will be able to get a low down payment option from different loan types depending on their situation.

Today, Security America Inc., a non-bank mortgage lending company announced that they are offering mortgage loans at a 0% down payment rate to service members and veterans of the United States Military. While the competition’s rates remain at a steady 3% down payment rate, Security America Inc.’s announcement has been welcomed as being potentially game-changing.

VA Home loans are mortgage options typically offered to active duty members, reservists and veterans of the United States Military for the purpose of purchasing a home. It is worth noting that the Veterans Administration does not lend money directly for the VA Home mortgage loans. Rather, the Veterans Administration acts as a guarantor to the top twenty five percent of loan applications made by private lending institutions which in this specific instance refers to Security America Mortgage Inc.

Veterans who qualify for the VA home loan get to purchase a home with zero percent down payment, no personal mortgage insurance and on top of it all the sellers pay for all the closing costs.

The main problem that has always been persistent as far as home ownership is concerned is the down payment option. This drawback continues to be the proverbial thorn in most prospective home owner’s heels. Back then, the norm was that you could disclose your income level, total assets and not necessarily disclose the details of your job; under the condition that your credit score was healthy.

Secure America Mortgage Inc. also offers another revolutionary mortgage plan where the prospective home owner only needs a 1% down payment for kick start the home buying process. The 1% down payment plan is similarly designed and meant to be specifically used to purchase a home with no allowance of refinancing options.

FHA mortgage financing criteria stipulates that at least 3% mortgage lending is the industry standard. This is echoed by the mortgage plans available in the market offered by brands such as Wells Fargo, Bank of America and JP Morgan all at 3% down payment. The difference however comes in with Security America Mortgage Inc. supplying 2% funding as a grant. This is done to meet the industry regulation’s 3% criteria. This means that the prospective homeowner contributes a friendly 1%.

This 1% down plan does however require of the prospective home owner meet of several terms and prerequisite conditions. First time home buyers are required to complete a free online application form developed by Security America Inc. This establishes the eligibility of the individual. Trading off for a low down payment volume translates to higher loan amounts and consequently larger volumes of monthly payments. As mentioned, the Security America Mortgage Inc. 1% down payment plan does have some prerequisite conditions one of which unspoken, requires the prospective home owner to have high levels of fiscal discipline. This ensures that the individual will stay faithful to the monthly payments.

This by a large part reduces instances of clients backtracking on mortgage loans. The upside however, is that the 1% plan does make quite the difference between being a successful home owner and being forced to wait a lengthy period to grow savings; often with the hope that the mortgage rates and home buying prices remain constant. That isn’t always the case. The Mortgage Lending industry is always adjusting to economic conditions.

Compared to traditional FHA loans, Security America Mortgage’s 1% plan doesn’t have any life of loan or upfront mortgage insurance premiums. These additional costs push the Loan to Value ratio well over 98 percent. The 1% down payment plan ensures you retain a larger volume of equity at lower Loan to Value ratios.

To show proof of need, the prospective home owner must be below the median income of the specific country of residence. The debt to income ratio must be below 45% with a minimum credit score of 680. So far, the response has been positive. Security America Mortgage Inc.’s 1% down payment plan has received widespread acclaim and shows promise of continued growth.

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Francisco Beistegui
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