Conventional loans are the most common type of loan used to finance a home purchase. They typically require a down payment of at least 3% to 5%. A borrower must have good credit, typically around a 680 or greater FICO score, to qualify for this type of loan. Conventional loans only require mortgage insurance on loans with greater than 80% LTV (loan to value) meaning once you pay your mortgage down by 20% you can cancel PMI (private mortgage insurance).
FHA loans are backed by the Federal Housing Administration and are designed for those who may not qualify for a conventional loan. These loans typically require less money down, usually around 3.5%. Credit score requirements can be more lenient, with some lenders willing to accept scores as low as 580. However, FHA loans require mortgage insurance for the life of the loan.
VA loans are offered to eligible military personnel and their families through the Department of Veterans Affairs. These loans typically do not require any type of down payment or mortgage insurance and have lenient credit requirements.
USDA loans are offered by the federal government to qualified borrowers in certain rural areas with moderate income levels. These loans also do not require any type of down payment and have lenient credit requirements. However, these loans are limited to very specific geographic locations and may not be available everywhere.
With our local connections for construction and renovation lending - we can have you building or completing those new home like renovations in no time.
We work with multiple agencies that can offer assistance with down payment and closing costs to offset those first time home owner expenses.
We do investment financing as well as financing on manufactured housing - yes even single wide's!