SERVICES

A conventional loan is a mortgage that is not backed by a government agency. Many lenders offer “conforming loans”, a type of conventional loan, which conform to the guidelines set by Fannie Mae and Freddie Mac. These two government-sponsored enterprises then buy the mortgages from lenders, thus reducing the risk to the lender and creating liquidity for more loans. Some lenders also offer “non-conforming” conventional loans. These include jumbo mortgages and other loans that may have unusual or riskier characteristics.

Conventional Loan options to consider:

• Higher loan limits than FHA 
• Adjustable-rate and fixed-rate loan terms available 
• No private mortgage insurance (PMI) with 80% loan-to-value ratio
• Available for second homes and investment properties
• PMI cancels when the LTV reaches 78% 
• Lower PMI rates than FHA Conventional 97 with 3% down
• Credit score requirement is higher than FHA  
• Higher down payment requirement  (5%-20%) 
• Qualifying guidelines are more strict Low income borrowers may not qualify
  

An FHA Loan may be right for you if:

• You are buying your first home Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. This is available on 1-4 unit properties.
• You want a fixer-upper. FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs – all in one loan.
• You are a senior living in a home that you own or with a low loan balance. People fitting this profile may be well-suited for an FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.
• You want to make your home more energy efficient. You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.
• You need financing for mobile homes and factory-built housing. FHA offers two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.

Benefits of a VA Loan

• No money down for loans up to $484,350
• No PMI (Private Mortgage Insurance)
• Government limits the amount of closing costs and origination fees lenders can charge, as well as appraisal fees
• Streamlined refinance loans can be closed in 7 to 10 days
• Protection built into ARM products that caps the annual allowable rate increase
• There is no limit to the number of times a veteran may use the program

In addition to these benefits, the VA Home Loan program offers default assistance to veteran borrowers in financial difficulty through a higher level of service and a greater range of alternatives to avoid foreclosure. Delinquency and foreclosure rates for VA loans are substantially less than for FHA loans

Below are some of the benefits of USDA Loans:

• No down payment required:Whereas many conventional loan programs require a 20% down payment, many USDA loans allow zero % down payment. With the ability to receive financing up to 100% of the appraised home value, homebuyers don’t have to spend any money out of pocket.
• Competitive 30-year fixed interest rates:With the guarantee of the federal government, a lender can offer the lowest interest rates to qualified individuals and families.
• Flexible credit guidelines: Although a credit report must be pulled, the USDA Rural Development program has less stringent credit guidelines, allowing potential homeowners with poor credit the ability to qualify for a home loan.
• No maximum purchase limit:The USDA Rural Development program has no maximum purchase price limit. However, a lender will still determine the maximum amount of loan each applicant is eligible for based on ability to repay.
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