Loan Products
Conventional Loans
Conventional Loans
Conventional Loans
Conventional loans offer flexibility in terms of down payment, credit score requirements, and property types. Here are some key points:
- Flexibility: Conventional loans offer flexibility in terms of down payment requirements, typically ranging from 3% to 20% of the home's purchase price.
- Credit Scores: While specific requirements vary by le
Conventional loans offer flexibility in terms of down payment, credit score requirements, and property types. Here are some key points:
- Flexibility: Conventional loans offer flexibility in terms of down payment requirements, typically ranging from 3% to 20% of the home's purchase price.
- Credit Scores: While specific requirements vary by lender, conventional loans generally require a credit score of at least 620. A higher credit score can lead to better interest rates and terms.
- Private Mortgage Insurance (PMI): PMI is required for conventional loans if the down payment is less than 20% of the home's purchase price. This protects the lender in case the borrower defaults on the loan.
- Loan Limits: Conventional loans have loan limits set by the Federal Housing Finance Agency (FHFA). These limits vary by county and can change annually.
- Property Types: Conventional loans can be used to finance a variety of properties, including primary residences, second homes, and investment properties.
- Interest Rates: Interest rates for conventional loans can vary based on factors such as credit score, down payment amount, and market conditions.
- Documentation: Borrowers typically need to provide extensive documentation of income, assets, and employment history to qualify for a conventional loan.
- Advantages: Conventional loans offer advantages such as potential lower interest rates compared to government-backed loans, no upfront funding fees (unlike FHA and VA loans), and the ability to finance a wider range of properties.
FHA Loans
Conventional Loans
Conventional Loans
FHA loans are mortgage loans insured by the Federal Housing Administration (FHA) and issued by approved lenders. They are popular among first-time homebuyers and those with less-than-perfect credit due to their more lenient qualification requirements. Here are some key points:
- Down Payment: FHA loans typically require a lower down payment
FHA loans are mortgage loans insured by the Federal Housing Administration (FHA) and issued by approved lenders. They are popular among first-time homebuyers and those with less-than-perfect credit due to their more lenient qualification requirements. Here are some key points:
- Down Payment: FHA loans typically require a lower down payment than conventional loans, often as low as 3.5% of the purchase price.
- Credit Score: FHA loans are more forgiving of lower credit scores compared to conventional loans. Borrowers with a credit score as low as 580 can qualify with a 3.5% down payment. Those with scores between 500 and 579 may still qualify with a 10% down payment.
- Mortgage Insurance: FHA loans require both an upfront mortgage insurance premium (MIP) paid at closing and an annual MIP that is added to monthly mortgage payments. This insurance protects the lender in case of borrower default.
- Loan Limits: FHA loan limits vary by county and are adjusted annually based on housing market conditions.
- Property Requirements: Homes purchased with FHA loans must meet certain minimum property standards (MPS) to ensure safety and livability.
- Gift Funds: FHA loans allow borrowers to use gift funds from family members or other sources to cover the down payment and closing costs.
VA Loans
Conventional Loans
USDA Loans
VA loans are mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA), designed to help eligible veterans, active-duty service members, and certain members of the National Guard and Reserves purchase homes. Here are key points to consider:
- No Down Payment: One of the most significant benefits of VA loans is that they ofte
VA loans are mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA), designed to help eligible veterans, active-duty service members, and certain members of the National Guard and Reserves purchase homes. Here are key points to consider:
- No Down Payment: One of the most significant benefits of VA loans is that they often require no down payment, making homeownership more accessible for veterans and service members.
- No Private Mortgage Insurance (PMI): VA loans do not require PMI, which can lead to lower monthly payments compared to conventional loans that require PMI for down payments less than 20%.
- Flexible Credit Requirements: While specific credit score requirements vary by lender, VA loans generally have more flexible credit standards compared to conventional loans, often accepting lower credit scores.
- Funding Fee: VA loans typically require a funding fee, which varies based on factors like the borrower's military service, down payment amount, and whether it's a first-time or subsequent use of the VA loan benefit. This fee helps sustain the VA loan program.
- Loan Limits: There is no official maximum loan limit for VA loans, but lenders may impose their own limits based on secondary market guidelines. Borrowers can generally purchase homes above conforming loan limits without a down payment.
- Property Requirements: Homes purchased with VA loans must meet VA's Minimum Property Requirements (MPRs), ensuring they are safe, structurally sound, and sanitary.
- Assumable: VA loans are assumable, which means a qualified buyer can take over the seller's existing VA loan with lender approval, potentially offering an attractive feature when selling the home.
USDA Loans
Conventional Loans
USDA Loans
USDA loans are mortgage loans guaranteed by the U.S. Department of Agriculture, designed to promote homeownership in eligible rural and suburban areas. Here are key points to consider:
- No Down Payment: USDA loans often require no down payment, making them an attractive option for borrowers who may not have substantial savings for a down p
USDA loans are mortgage loans guaranteed by the U.S. Department of Agriculture, designed to promote homeownership in eligible rural and suburban areas. Here are key points to consider:
- No Down Payment: USDA loans often require no down payment, making them an attractive option for borrowers who may not have substantial savings for a down payment.
- Income Limits: Borrowers must meet income eligibility requirements, which vary by location and family size. Generally, USDA loans are intended for low-to-moderate income households.
- Property Eligibility: Homes financed with USDA loans must be located in eligible rural or suburban areas as defined by the USDA. The property must meet USDA's Minimum Property Requirements (MPRs).
- Guarantee Fee: USDA loans require an upfront guarantee fee and an annual fee paid monthly as part of the mortgage payment. These fees help support the USDA loan program.
- Flexible Credit Requirements: USDA loans have more flexible credit standards compared to conventional loans, making them accessible to borrowers with less-than-perfect credit histories.
- Loan Limits: USDA loans do not have a set maximum loan amount, but loan limits are determined based on income eligibility and repayment ability.
Construction Loans
Bank Statement/Self Employed
Bank Statement/Self Employed
Build your dream home with an all-in-one construction loan. Contact us for more information.
Bank Statement/Self Employed
Bank Statement/Self Employed
Bank Statement/Self Employed
Great for self-employed borrowers. Use bank statements to verify gross business income.
DSCR/Investment
Bank Statement/Self Employed
DSCR/Investment
Designed for the real estate investor. Use a DSCR loan to purchase 1-8 unit multi-family properties.
Refinance Loan
Bank Statement/Self Employed
DSCR/Investment
Refinance your property to access equity in your home.