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Table of Contents:
1. Do I have to be a first time homebuyer?No. You could have been the owner of previous homes. However, the loan is meant to make it possible for people to move from renting to owning, so you can't currently own a home. Back to Top
2. How much out-of-pocket money is required using the guarantee?You can usually purchase with almost no out-of-pocket money. The loan can be 102% of the appraised value of the home, which covers the guarantee fee and eliminates the PMI requirement. This can save you money on monthly mortgage payments and/or qualify you for a larger home than you could buy with a conventional loan. We'll help you negotiate closing costs. It's very common today to purchase a home without having to pay a large (if any) upfront fee. Back to Top
3. How do I apply for the loan?Start by filling out the pre-qualifying application information on our website or by calling 336-982-6020. The application process for the buyer is the same as for any non-guaranteed loan. We'll walk you step by step through the process and answer any questions you have. We want to help you understand your options and help you get the loan that's right for you. Back to Top
4. How big a house can I purchase?There is no size or price limit on the house. The limiting factor is that no more than 29% of your gross income can go toward a house payment. We have even been able to get this rule waved for buyers with credit scores over 660. Back to Top
5. Is the interest rate higher than on a conventional loan?Rates on loan products vary and banks are very competitive. You may be able to find better rates and it usually pays to shop around. The fixed rate on a guaranteed loan is not significantly higher than it is with other comparable loans. Rates, though they are important, are not always what define a good loan. You have to look at the big picture. What makes this loan different is the advantage of not having to pay PMI, which can considerably lower your monthly payment and reduce how much you pay monthly and/or over the life of the loan. Back to Top
6. What about my credit score?The credit requirements are about the same as for non-guaranteed loans. However, there is no minimum established credit score, which allows us to make loans to some buyers who normally wouldn't qualify for a loan. In other words, we are able to take into consideration your unique situation. Also, we can easily make GRH loans to most buyers who have not yet established credit. This makes the loan very appealing to people just starting out who want to establish credit and are ready to own a home. Back to Top
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