LOAN PROGRAMS

 

CONVENTIONAL

  • Most common type of loan
  • Requires at least 3% down
  • Putting 20% down eliminates private mortgage insurance
  • Requires at least a 620 credit score
  • Has a max debt-to-income ratio of 45%-49.99% depending on qualification
  • Loans are secured by either Fannie Mae or Freddie Mac
 

JUMBO

  • Any loan amount greater than $548,250

  • These loans are not secured by Fannie Mae or Freddie Mac and follow a different set of underwriting guidelines throughout the process (which is typically more strict than Conventional guidelines)

  • Fixed and adjustable rate options available

 

FHA

  • Great for first time homebuyers or those with lower credit scores

  • Requires at 580 credit score to qualify

  • Minimum down payment of 3.5%

  • Max loan amount of $524,225

 

VA

  • Designed for active and retired service members, certain reservists and National Guard members, and certain surviving spouses of deceased military members
  • No down payment and no private mortgage insurance
  • Minimum credit score of 580 required
  • Much more flexible debt-to-income ratio than Conventional or FHA

Homeready or Homepossible

  • A type of Conventional loan
  • Low down payment option (not only for first time homebuyers!)
  • Requires at least 3% down
  • Income limits based on the person(s) on the loan, not based on household income
  • Lower private mortgage insurance rates
  • Lower interest rates compared to Conventional
 

USDA

  • The home most be located in a USDA Eligible Area, which is typically more rural areas
  • No down payment required
  • No formal credit score requirement but typically lenders require at least a 640 minimum
  • Buyers must be household income limits