Home Loan Programs
CONVENTIONAL LOAN
A conventional loan is not guaranteed or insured by any government agency. They allow down payments as low as 5% down with monthly mortgage insurance. The maximum loan amount for a conventional loan is based on the county the home is located in, and can range between $484,300 and $726,525.
Details to Consider
Conventional loans typically involve less paperwork than government-backed loans. With a down payment of 20% or more on a conventional loan, you can avoid monthly private mortgage insurance. If you can’t make a down payment of 20%, you’ll need to carry monthly mortgage insurance, and contribute to an escrow account to pay your property taxes and homeowner’s insurance.
FHA LOAN
FHA Loans are insured by the Federal Housing Administration. They offer flexible credit requirements, competitive rates and down payment options as low as 3.5%. The maximum loan amount for an FHA loan ranges between $314,827 and $726,525 depending on the county where the property is located.
Details to Consider
FHA loans may require less cash upfront for your down payment, but the program will require up-front mortgage insurance and monthly mortgage insurance. You’ll also be required to set up an escrow account to stay on top of your property taxes and insurance payments.
VA LOAN
If you are a veteran, active duty service member, or surviving spouse of a veteran, you may be eligible for the VA loan program. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA).
Details to Consider
VA Loans offer low rates, with no monthly mortgage insurance payments and down payments as low as $0 for qualifying borrowers! New VA Loans can only be taken on a primary residence. The amount you can borrow may be limited by your VA entitlement amount. VA Loans also require an up-front funding fee, unless you have a military service-related disability.
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JUMBO LOAN
Jumbo loans offer loan amounts above conventional loan limits. They’re available in both a fixed-rate or adjustable-rate option, and offer various term options. They can be used to purchase or refinance a primary home, investment property or even a vacation home.
Details to Consider
With a Jumbo Loan you can still get a competitive interest rate. Generally jumbo loans will require a higher FICO score, and can require on average between 10 t0 20 percent towards your down payment. The conforming loan limit is higher in counties with higher home prices, so be sure to check your area’s loan limits.
USDA LOAN
USDA loans are guaranteed by the U.S. Department of Agriculture and can be used to purchase, refinance or build a primary residence in rural or suburban areas. The program offers eligible borrowers up to 100% financing with flexible credit requirements.
Details to Consider
USDA loans do have restrictions, the property must be within the USDA Eligibility Map (Search here) and they are set income limits based on the county the property is located and the size of the household. USDA loans offers great rates and low monthly mortgage insurance compared to other loan programs.
