Mortgage Options

Conventional Loans

conventional loan is a mortgage loan, which is not insured or guaranteed by any agency of the state or federal government.

  • The loan limit is up to $766,550
  • Typical conventional loan guidelines now require a minimum 620 credit score and debt-to-income ratios of 29 and 45.

FHA Loans

First-time home buyers choose FHA loans for their low rates and because they are often easier to obtain.

  • Lower down payment
  • More liberal qualifying formula
  • Fixed-rate
  • FHA is typically a first-time home-buyer program. However, it can be used multiple times.
  • 620 credit score
  • 3.5 percent required down payment which can come from a gift, secured borrowed funds (under certain circumstances,) retirement plans, etc.
  • The loan limit is up to $498,250

VA Loans

If you are on active duty or retired military, the Veterans Administration offers a number of mortgage options that could be right for you.

  • Possible for a veteran to obtain 100% loans
  • No down payment
  • More liberal than conventional lenders
  • The loan limit is now $766,550 up to $1.5 million
  • Jumbo Loans are from $766,551 to $2 million
  • 620 credit score required
  • Can be used by the national guard, reservist, current or previous active duty, and surviving spouses of these individuals

USDA Loans

The USDA home loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the US Department of Agriculture. To qualify, families must be without adequate housing, but able to afford the mortgage payments. Those eligible may have an income up to 115% of median income for the area. These loans offer 100% financing to qualified buyers with the option for closing costs to be either paid for by the seller or financed into the mortgage loan.

Disadvantages: USDA loans include lifetime monthly insurance premiums (MIP), including an upfront MIP that is rolled into the note. MIPs for USDA loans are typically higher than those associated with conventional mortgage loans.

  • 660 minimum score for approval.
  • Houses with over 5 acres and with other out buildings may not qualify