Financing
6 Types of Loans
USDA LOAN
WHAT IS IT
A mortgage for low to moderate income borrowers looking to buy homes in select rural areas.
BENEFITS
A wide range of homes to choose from including manufactured and new construction homes. No down payment and no MI.
TO QUALIFY…
Conventional Loan
WHAT IS IT
A mortgage loan backed by the Federal Government requires a higher credit score and stricter lending guidelines.
BENEFITS
TO QUALIFY…
Typically a minimum credit score of 620, adequate income, and assetdocumentation. LTV up to 97%
VA Loan
WHAT IS IT
A loan backed by the Department of Veterans Affairs for military members. Some spouses may be eligible.
BENEFITS
No cap on income or loan limits. There is no MI, and the rates are competitive. Loans can also be used for new construction, renovation, and manufactured homes.
TO QUALIFY…
No minimum credit score is required. The lender sets the minimum credit score. (Typically 620). VA funding fee is required, and the appraiser must be VA-approved.
FHA Loan
WHAT IS IT
A mortgage loan from private lenders that are regulated and insured by the Federal Housing Administration.
BENEFITS
Great for people with past derogatory credit activity and delinquencies. Down payment and credit scores are lower.
TO QUALIFY…
with a score as low as 500 and up. A 580 credit score requires a minimum down payment of 3.5%. Scores between 500 and 579 require a down payment of 10% down.
Jumbo Loans
WHAT IS IT
A larger conventional loan to finance properties that exceed the max conventional and high-balance loan limits.
BENEFITS
Ability to buy luxuries homes for $1 million or more. Interest rates are typically lower.
TO QUALIFY…
Often requires a down payment of 20% or more. The credit score requirement is higher at 680 to 700 or above.
Reverse Mortgage
WHAT IS IT
A loan for homeowners with an age of 62 years or older. The most common loan is the Home Equity Conversion Mortgage.
BENEFITS
The max loan limit is typically $970,800. NO DTI or Ratio required. Lender makes payments to the borrower. Surviving spouses can live in the home but must maintain it.
TO QUALIFY…
