Conventional Loans
A conventional mortgage refers to a loan that is not insured or guaranteed by the federal government. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate.
Conventional loans may be cheaper overall but require good credit. Mortgage insurance may also be required with conventional loans if a down payment is below 20%.
Contact your loan officer for a private consultation and compare loan programs when shopping for the right mortgage solution
FHA Loans
FHA loans can be used to purchase a home or refinance an existing mortgage, and there are many benefits to having an FHA loan. You can purchase a home with a lower down payment than a conventional loan, or use a streamline refinance to lower your current payment, with less documentation than a traditional loan.
FHA loans enable more people to achieve home ownership by allowing borrowers who have less than perfect credit, no credit history, or who may have experienced some financial missteps, like a foreclosure or bankruptcy, to qualify.
The program has become popular with first time home buyers and move up buyers because you can purchase a house with a low down payment, qualify easier with lower underwriting standards and FHA loans traditionally have lower rates than conventional loans.
With low rates, low down payment options, and flexible lending guidelines FHA loans are a top choice for today's buyers.
FHA MIP is what makes FHA loans possible. Over the past few years FHA MIP has dropped making it even easier to qualify.
Wide Variety of FHA Loan Products: Whether it is a 30 year fixed, 15 year fixed or a 203k loan, FHA has you covered.
FHA Allows Low Down Payments: With a low down payment option, more people can purchase a new home. This is great for first time home buyers, those who have little money to put down, or simply for those wanting to keep reserves in the bank.
FHA Allows 100% Gift Funds: In addition to a low down payment, those funds can come from a gift.
FHA Insures All Types of Properties: FHA loans are available for single-family detached homes, 2-4 unit homes, condos, and manufactured homes.
FHA Streamline Refinance: One of the best things about FHA loans is the ability to Streamline Refinance. This is the easiest way to refinance as there is no credit qualifying, no income verification, and no appraisals required.
USDA
A USDA loan (Section 502) is a home loan that is guaranteed by the United States Department of Agriculture. It typically offers very low and competitive interest rates on home loans to borrowers with no down payment requirements. The USDA Home Loan Program was made available to borrowers with excellent financing terms and flexible credit guidelines to give people an incentive to populate rural areas.
Since the USDA Loan offers 100% financing to buyers and closing costs can be paid by seller or rolled into the loan, homebuyers usually do not have to bring any funds to closing.
There are a few requirements that must be met to be eligible for a USDA Home Loan. Talk to one of our Loan Officers today to learn more.