Features of mortgage lending in the USA

Mortgages in the USA have their own nuances and limitations. The key features of the mortgage here include:

  • The loyalty of the vast majority of banks to borrowers (especially to US citizens).

In America, there is a program to stimulate the construction of residential real estate and increase mortgage lending. Therefore, credit institutions often meet customers when considering applications and issue loans for both the purchase of finished and the purchase of housing under construction.

  • Providing a mortgage loan with a floating interest rate.

Mortgage programs offered by American banks for the most part are issued at floating interest rates, the amount of which varies depending on the quality of performance of borrowers of their obligations. This allows banks to increase their income, and for customers it has certain disadvantages, among which there is a constantly changing monthly payment amount.

  • Accounting not only the official income of the potential borrower, but also personal savings.

When considering a loan application, all banks in the United States take into account not only its official salary, but also additional income, as well as pension and bank savings, investments in securities, etc.

Available mortgage programs and banks

To solve the housing problem and improve current living conditions, potential borrowers are offered a range of mortgage programs, each of which is aimed at a specific category of clients and has unique conditions.

Currently, in the USA you can get a mortgage using the following programs:

  • Mortgage to support the low-income population and construction companies (The Homeownership Pool) – operates in the state of Florida and allows people with low incomes to get a soft loan for the purchase of housing from the established list;
  • Home Equity Conversion support program – a reverse, unattended mortgage, with which pensioners can get a life loan secured by their existing property while retaining ownership;
  • Mortgage insurance for disaster victims (Mortgage Insurance for disaster victims section) – a program that can be used by anyone whose house was destroyed as a result of a natural disaster or other disaster;
  • Mortgage program for clients using energy-saving devices (Rehabilitation Mortgage Insurance) in their homes – such a loan is granted on favorable terms and at low interest rates;
  • Refinancing program.

    Among the banks issuing mortgage loans, it can be noted Bank of America, JP Morgan Chase, Wells Fargo, First Republic Bank, City National Bank, The Bank of New York Mellon and others.

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