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Purchase
Beautiful Private House in the Suburb

purchasing a home

Buying a home is major life decision. Choosing the correct loan type can make a great difference. Let us guide you through the process.

Loan Types

Conventional

Conventional loans are any type of creditor agreements that are not financed by the Veterans Administration (VA), or supported by the Federal Housing Administration (FHA). In general, all conventional loans are protected by the government sponsored entities such as Fannie Mae (FNMA) and Freddie Mac (FHLMC).

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There are two different types of Conventional loans; Conforming and Non-Conforming loans. Conforming loans have to meet the guidelines set by Fannie Mae and Freddie Mac. Any loan which does not meet guidelines is a non-conforming loan.

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Advantages:

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  • Lower Fees: Fees associated with Conventional loans frequently are lower than other loan products because the lender sets these rates.

  • Interest Rates: Lenders determine the rates to offer borrowers based on their credit scores. A person with a solid credit score is often able to secure a lower rate.

fha

The Federal Housing Administration was created in 1934 in an effort to bolster homes sales during the Depression. By financially guaranteeing loans, the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.

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Advantages:

  • Bankruptcy not an automatic disqualification

  • Lower interest rates

  • Down payment is less

  • Lower mortgage points and other closing cost requirements

  • Resale can be made more quickly

  • Is backed by the U.S. government

 

Features:

  • Down payment required

  • Higher upfront Mortgage Insurance Premium (MIP) than on conventional loans but monthly MIP can be lower

  • Loan Limits are lower than conventional

  • MIP required regardless of the Loan-to-Value (LTV)

jumbo

Jumbo loans are available to borrowers that are looking to borrow quantities larger than the conforming limits.

 

Advantages:

  • Jumbo loans offer affordable terms for higher-priced homes

  • They are ideal for high-income earners with good credit

  • Low down-payment options are available

 

Features:

  • Qualification standards may be tougher

specialty

  • Renovation lending – Homestyle and 203k resources, with dedicated staff to support you from start to finish​

  • Non-Agency Programs - include 90% Jumbo with no MI near prime rates, 90% bank statement options, asset depletion for Jumbo loans, Fico as low as 620, non-warrantable condos, and more​

  • OFF term products such as a 27 year, 18 year, 22 year loan terms​

  • 580 fico FHA/VA up to high balance loan amounts on Purchase, R/T Refi and VA C/O, plus streamlines and IRRRLs​

  • Manual underwrites on FHA loans with expanded DTI up to 40/50, compensating factors required​

  • DACA Borrowers with FNMA programs

usda

The USDA Rural Housing Service has various programs available to aid low- to moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities. USDA Rural Housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no down payment.

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Advantages:

  • No down payment requirement

  • Property must be located in an eligible rural area

  • Closing costs can be added to the loan amount (if the property appraises high enough to include it at up to 102% of the appraised value)

  • Loan government guarantee fee with no monthly guarantee fee

  • Low interest rates

  • Applicants with a wide range of credit profiles may qualify

  • Income eligible applicants who do not qualify for conventional financing may qualify

  • Families & individuals that have minimal funds for a down payment and closing costs includes first time homebuyers and repeat homebuyers

  • Seller concessions – 6% max

  • No cash reserve requirement

  • No Non-Allowable costs

  • No First Time Homebuyer Requirement

  • 30 Year Loan @ competitive fixed rate

  • No limit on gift funds

 

Features:

    Property must be in very good condition and have a high insulation R-factor

    You can not make over 50% of 115% of the median county income to qualify

    Must be able to verify income limits

va

A VA loan is a mortgage loan guaranteed by the Veterans Administration. It was created in 1944 and signed into law by President Franklin D. Roosevelt. A VA loan provides veterans and/or their surviving spouses who have not remarried, with a federally guaranteed home with zero down payment. The program, also referred to as the GI Bill, has been highly successful and has helped millions of American veterans and their families acquire a home.

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Advantages:

  • No down payment

  • VA does not require private MIP

  • Limit on the amount of origination fees and closing costs that the lender can charge

  • Limit also placed on appraisal fees

  • VA does not require private MIP

  • Closing costs can be paid by the lender and the seller

 

Features:

  • Borrower with eligibility remaining must have a Certificate of Eligibility from the VA

  • Borrowers are required to make a one-time funding fee based on loan amount and applicant’s service length – IN SOME CASES, this can be waived

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Questions about the 

loan

process?

We can help.

While no two loans are ever the same, we're happy to fill you in on what to expect during every step of your loan process.  When our customers are informed and prepared, the loan process runs smoother and we can get you home sooner! 

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