FHA mortgage loans are issued by approved lenders certified by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.
FHA loans are an attractive option, especially for first-time homeowners:
- Easy credit qualifying
- Lower down payment requirements
- Low closing costs
Conventional loans are mortgage loans not guaranteed or insured by any government agency. These loan types include:
- Fixed Rate Loans
- Adjustable Rate Loans (ARMs)
Designed to offer long-term financing to American Veterans, VA mortgage loans are issued by qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.
How it works:
- 100% financing without private mortgage insurance
- A VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the VA
- When purchasing a home, Veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less
- When refinancing a home, Veterans may borrow up to 90% of reasonable value in order to refinance where state law allows
Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes. Typically Jumbo Loans require a higher down payment than traditional loans.
- Lower credit scores allowed
- Borrowers must meet USDA medium (moderate) income limits 1-unit properties located in USDA- designated “rural” areas allowed
- No down payment required, 100% LTV/CLTV
- Closing costs may be included in the loan amount up to the difference between the sales price and appraised value
Credit report, DTI ratio, appraisal for existing guaranteed loans, or property inspection required
A Reverse Mortgage is a loan available to homeowners, 62 years or older, that allows homeowners to convert part of the equity in their homes into cash. This product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses or pay for health care.