Loan Types

FHA Loan

A loan insured by the Federal Housing Administration open to all qualified home purchasers and require two form of mortgage insurance. FHA loans allows for 3.5% down payment with a 580 credit score or 10% down for 500-579 scored borrowers. Loan limits for the FHA loan program vary by county and change yearly. Requires the borrower to occupy the home as a primary residence. Can be used on 1 to 4 family homes and approved condominiums.

VA Loan

Zero down or low down payment loan guaranteed by the Department of Veterans Affairs. Available only to individuals eligible by military service or other entitlements. Loan amounts can exceed 1MM without mortgage insurance. Requires the borrower to occupy the home as a primary residence. Can be used on 1 to 4 family homes and approved condominiums.

USDA Loan

Zero down or low down payment loan guaranteed by the US Department of Agriculture and allows for low to moderate income loans in rural areas. This program like the FHA has 2 forms of mortgage insurance. The USDA does not have score criteria, 640 appears to be the score needed. This program is very address specific ( Eligible Homes) and will require verification a home is in an approved area.

Conventional Loan

A mortgage not insured or secured by a government entity. It is issued based on guidelines of the (GSEs) Government Sponsored Enterprises. Fannie Mae and Freddie Mac, These loans offer down payments from 3% up.

They can be used for a primary residence, second (vacation) home, or investment property. Loan limits vary by county and will change annually.

Jumbo Loan

A loan which is larger than conventional loan limits set by the Federal Housing Finance Agency (FHFA).

Construction Loan

A short term interim loan for financing the cost of construction. The lender advances funds to the builder at periodic intervals as the work progresses. Once the construction as been completed the loan typically is converted or refinanced to traditional longer term loans.

HELOC / Equity Lines

A home equity line of credit, also known as a HELOC, is a line of credit secured by your home. This can be used to make large purchases , consolidate debt or when purchasing a home to assist in eliminating mortgage insurance premiums.

Low Document / Stated Loans

Low /no documentation loan allows a borrower applying for a mortgage to provide little or no information regarding their employment, income, or assets. Typically available for self employed , 1099 or tipped service workers these loans allow for various alternative income verification.