Sources of Mortgage Money:
Independent Mortgage Companies make just over half of all home mortgages, including most VA-guaranteed and FHA-insured loans.Savings Institutions: Savings and loan associations and savings banks originate close to a quarter of home mortgages. Most are conventional loans – those not guaranteed by the VA or FHA, or insured by the FHA.
Commercial Banks are active in residential lending. Banks also are a major supplier of loans for mobile-home buyers.
Mortgage Brokers act as intermediaries. A broker keeps tabs on the mortgage market through ties to local, regional and national lenders, and can refer a prospective borrower to a mortgage banker, savings institution or a commercial bank. Brokers don’t lend money and can’t approve loans.
Credit Unions make close to one-third of all first-mortgage loans, but you must be a member.
Public Agencies: State and local finance agencies make below-market-rate financing available to eligible low- and moderate-income first-time buyers through the sale of tax-exempt bonds.
Employers and Unions: Don’t overlook your employer as a source of assistance. An employer may subsidize the interest or even act as a lender. Unions are another possibility. The AFL-CIO offers what it calls "Union Privilege." Unions that sign on can make first-time home loans available to eligible members for as little as three percent down.
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