VA Loans

VA loans are 0% down home loans available to Veterans, Service Members, and select military spouses. They have no PMI (Private Mortgage Insurance) since they are backed by the Federal Government. VA purchase loans also allow Veterans to buy single-family homes, condominiums, multi unit properties (like a duplex), and even new construction. VA loans can’t be used to purchase investment properties. VA loans have very competitive interest rates beating conventional rates often by .5 percent or more. They allow borrowers to pay off their home loans at any point without having to worry about a prepayment penalty.  Veterans who qualify for a VA loan can use this program over and over again, and the benefit never expires. If you are active duty, prior military, or a surviving spouse this is the loan for you! No money down, low rates, no PMI! Not sure if you are eligible? Just give us a call and we can tell you how much eligibility you have! 

  1. Certificate of Eligibility from the VA (our loan originators will order this for you)
  2. Minimum 620 Credit Scores, See below for lower credit scores
  3. Ability to pay any closing costs not being paid by the seller from an acceptable source
  4. Ability to meet general debt ratios of 30/55 – typically most loans are able to be approved with housing ratios of 30% and total debt ratios of 55%. We do see higher (or lower) ratios depending on specific situations.
  5. When scores are under 620 those ratios drop to 29/41 – typically most buyers with scores under 620 will need to keep their total housing ratio under 29% and their total overall debt ratios under 41%. These loan types also require additional compensating factors. Call our loan originators for more details!
  6. We do have to include monthly child care expenses being paid on this loan type so please include this debt.

Conventional Loans

Conventional loan options are a great choice for homeowners looking to purchase any property type from a primary residence, a second home, or an investment property. This is also a great refinance loan option to lower your existing rate or pull cash out for home improvements, debt consolidation, or that long overdue vacation. This loan is great for new home buyers with at least 3% down, good credit, and low debt ratios. Conventional loans do not have PMI if you have 20% equity in your home or are putting down 20% on a new home purchase. If you don’t have 20% to put down, no problem! The PMI drops off after you have paid down your loan, unlike FHA and USDA loans where PMI is in most cases for the life of the loan. Conventional loans do not have upfront PMI, they allow for as little as 3% down and while the rates are higher than those of government loans, the offset in what you pay for PMI both upfront and monthly can more than makeup for the difference in the rate! 

  1. Minimum 620 Credit Scores
  2. Ability to pay any closing costs not being paid by the seller from an acceptable source.
  3. Ability to pay a down payment of 3% – 20% depending on eligibility and occupancy status.
  4. Ability to meet general debt ratios of 30/45 – typically most loans are able to be approved with housing ratios of 30% and total debt ratios of 45%. We do see higher (or lower) ratios depending on specific situations.
  5. Reserves are also needed depending on the occupancy status (primary or second home/investment property)

FHA Loans

FHA loans only require 3.5% down. This loan will allow for less than perfect credit and higher debt ratios than traditional conventional lending. FHA loans can’t be used to purchase investment properties. FHA has competitive rates similar to VA rates, but does have PMI (Private Mortgage Insurance) for the life of the loan. They allow borrowers to pay off their home loans at any point without having to worry about a prepayment penalty. This loan option is open to anyone that will qualify and is ideal for anyone needing a low down payment with less than perfect credit. If you are unsure where your down payment funds are going to come from, give us a call to discuss your options.

  1. Minimum 620 Credit Scores, See below for lower credit scores
  2. Ability to pay a down payment of 3.5% from an acceptable source
  3. Ability to pay any closing costs not being paid by the seller from an acceptable source
  4. Ability to meet general debt ratios of 30/55 – typically most loans are able to be approved with housing ratios of 30% and total debt ratios of 55%. We do see higher (or lower) ratios depending on specific situations.
  5. When scores are under 620 those ratios drop to 29/41 – typically most buyers with scores under 620 will need to keep their total housing ratio under 29% and their total overall debt ratios under 41%. These loan types also require additional compensating factors. Call our loan originators for more details!

USDA Loans

USDA loans are 0% down loans, but are only available in rural areas. USDA is for primary residences only and for those who do not currently own any other properties. If the area you are looking in qualifies for rural housing and you are a first time home buyer with good credit and low debt ratios this is a great loan option for you. This loan does have PMI (Private Mortgage Insurance) for the life of the loan. They allow borrowers to pay off their home loans at any point without having to worry about a prepayment penalty. You will have to meet the income eligibility requirements for the county you are purchasing in as well as meet the property requirements established by the USDA.

  1. Property Address must be eligible per USDA
  2. Borrowers must not exceed the income limits set by USDA for the county the mortgage will be in.
  3. Primary Residences only and borrower can not own any other real estate to obtain a new USDA loan
  4. Minimum 640 Credit Scores
  5. Ability to pay any closing costs not being paid by the seller from an acceptable source
  6. Ability to meet general debt ratios of 28/41 – typically most loans are able to be approved with housing ratios of 28% and total debt ratios of 41%