WILMINGTON – In addition to more traditional home loans, hometown community bank Wilmington Savings Bank is also now offering FHA and VA loans. Bank president Tom Burns explained that the bank continues to find solutions that help hard working members of the community obtain home ownership.
“Owning a home is still the American dream,” Burns said. “And it’s the cornerstone of a thriving community, so the ability to create more opportunities and provide options to more residents is not only good for our bank, it’s good for our community.”
An FHA home loan is a mortgage insured by the Federal Housing Administration, according to the U.S. Department of Housing and Urban Development. It is an alternative to a conventional mortgage, and are generally intended to help people with limited down payment funds or modest credit history.
A major difference between an FHA loan and a conventional mortgage is that FHA borrowers only have to put down 3.5 percent on the purchase. Closing costs may also be lower on FHA mortgages.
A Veterans Affair, or VA, loan entitlement is a basic entitlement of $36,000 that is available to eligible veterans seeking a VA home loan. Most lenders will loan up to four times the veteran’s entitlement on a home without requiring the veteran to make a down payment. VA loans are subject to credit and income qualifications and the property being purchased must appraise for the price being asked for it.
The VA does not set a limit on how much a qualifying veteran can borrow when looking to finance a home, and most VA homes are purchased with no money down.
Burns says that anyone interested in learning more about the FHA/VA loan options offered by Wilmington Savings Bank may stop in the local office and discuss with a loan officer.