Loan Products

Conventional Loan

Conventional Loan Benefits

• Higher loan limits
• Low down payment
• Flexible loan options
• Ability to make a larger down payment to avoid Private Mortgage Insurance (PMI)  or cancel PMI at 80% loan to value

Conventional Loan Program

A conventional loan is a safe, transparent loan that follows the rules put in place by Fannie Mae and Freddie Mac. Conventional loans allow as little as 3% down to purchase your home using Freddie Mac Home Possible or Fannie Mae HomeReady. Mortgage insurance is required for loan to values exceeding 80%. The program can be used to purchase or refinance primary, secondary or investment properties.

Federal Housing Administration Loan

FHA Loan Benefits

• Low down payment of 3.5%
• Flexible credit rules for easier credit qualification
• Down payment can be a gift from an eligible family member
• Low closing costs
• Seller may contribute up to 6% in closing cost

FHA Loan Program

The Federal Housing Administration (FHA) is part of HUD which insures the loan, so your lender can offer you a better deal.

FHA loan limits are adjusted annually by the National Housing Act and vary in different counties. Your down payment can be as low as 3.5% of the purchase price and may be gifted from an eligible family member or with a down payment assistance programs. The closing costs can be paid by the seller up to 6% of the purchase price. FHA carries up front mortgage insurance and monthly mortgage insurance premiums. The mortgage insurance rates are usually lower than conventional mortgages for some borrowers. FHA has more flexibility on credit terms or someone with a limited credit profile and minimal savings.

An FHA loan allows the borrower to get the funds necessary to close from several sources. They include such areas as personal savings, gifts, grants, loans from retirement accounts and seller contributions.

US Department of Agriculture Loan

USDA Loan Benefits

• Zero down payment
• Relaxed credit requirements
• More accessible and affordable for individuals and families in designated rural areas.
• Low income families may qualify
• No PMI- Guarantee fee is paid monthly and

USDA Loan Program

USDA is zero down payment mortgage for home buyers in eligible rural areas that are guaranteed by the USDA Rural Development Guaranteed Housing Loan Program. A USDA home loan is priced competitively and makes purchasing a home more affordable for low-to moderate- income home buyers in rural areas. The adjustable gross monthly household income can’t be more than 115% of the median income for the area. USDA loans do not carry standard mortgage insurance. There is an upfront guarantee fee that is a percentage of the the loans value that is paid at closing or rolled into the mortgage. There is also an annual fee, which lasts the life of the loan as a percentage of the loan value. This amount is divided by 12 and then added to the monthly payment.

Eligibility Site

Veterans Affairs Loan

VA Loan Benefits

• Utilize VA entitlement for zero down payment!
• No monthly mortgage insurance premium
• Flexible qualification
• Streamlined refinance option without appraisal or income documentation if market rates decrease by .5% or more utilizing the Interest Rate Reduction Refinance Loan (IRRRL)
• Seller may pay closing cost up to 4% of the purchase price
• VA loans are assumable

VA Loan Program

VA loans are available for military veterans that are active duty or prior service. VA often requires no down payment, lower closing cost, seller contribution to closing cost up to 4%, no monthly mortgage insurance premium. A VA loan is guaranteed by the U.S. Department of Veteran Affairs (VA). It is designed to offer long-term financing to eligible veterans or their unmarried surviving spouses.

VA Funding Fee

The U.S. Department of Veterans Affairs may implement a Funding Fee to all VA loans between .5% and 3.3% of the loan amount financed based on loan type and subsequent or first time use of the entitlement.

You won’t have to pay a VA Funding Fee if any of these descriptions are true for you:

• You’re receiving VA compensation for a service-connected disability, or
• You’re eligible to receive VA compensation for a service-connected disability, but you’re receiving retirement or active-duty pay instead, or
• You’re receiving Dependency and Indemnity Compensation (DIC) as the surviving spouse of a Veteran, or
• You’re a service member who has received a proposed or memorandum rating before the loan closing date that says you’re eligible to get compensation because of a pre-discharge claim, or
• You’re a service member on active duty who, before or on the loan closing date, provides evidence of having received the Purple Heart

Assumable VA Mortgage Loans

An important thing to know about VA loans is that they are assumable. This means that a borrower can take over the terms of an existing VA loan, even if they are not eligible to take out a VA loan for themselves granted they meet the credit qualification standards imposed by VA. This is a great tool for prospective buyers with the prior historical low interest rates. There are fees and cost associated with a VA loan assumption including a funding fee of .5% of the loan balance. This fee goes directly to the VA to help keep the program running.

VA Interest Rate Reduction Refinance (IRRRL)

VA mortgage loans have built in features allowing a loan to be refinanced to a lower interest rate without all the criteria normally associated with a full documentation refinance. This is called an Interest Rate Reduction Loan; the veteran can secure a lower interest rate without any credit checks, appraisal, and income or asset verification. The new closing cost can be rolled into the  transaction into the loan so there are no out of pocket costs.