The Acceptable Financing field provides five options for conveying how the sale of a property has been financed. You are able to select multiple options in this field, however those choices must be accurate:
- Assumable Mortgage is a type of financing arrangement whereby an outstanding mortgage and its terms are transferred from the current owner to a buyer.
How do I know if my loan is assumable? You can check the loan documents to see whether assumptions are permitted. The loan document will typically state whether or not the loan is assumable under the Assumption Clause. Terms may also appear under the Due on Sale clause if loan assumption is not permitted.
- Owner Financing is a transaction in which a property's seller finances the purchase directly with the person or entity buying it, either in whole or in part.
- CHFA Loans are offered through the Connecticut Housing Finance Authority. They are for First-time Homebuyers who are looking to purchase a home in certain areas that are targeted for revitalization. CHFA Loans are offered at competitive interest rates. There are certain criteria that are taken into consideration when applying for a CHFA Loan, both on the part of the borrower, as well as the property the borrower is looking to purchase.
- FHA Loans are part of a group of loans that are insured by the federal government. This means that, instead of lending money, the FHA insures banks and private lenders that they will cover losses they might incur in the event that the borrower does not repay the loan in full or in a timely fashion.
- VA loan is a loan guaranteed by the government (Department of Veteran Affairs) and available to the military, active and retired, and even for some eligible spouses, at low-to-no-down payment scenarios with competitive rates and fees.