Conventional Loans
If you are looking for a mortgage with a wide selection of terms and competitive rates, conventional loans may be your answer. These loans are what most people think of when it comes to a traditional home loan. Conventional Home Loans are not part of a government-sponsored program, and are instead fully funded and insured by private lenders and insurers.
Basic Conventional Loan Requirements
- Ultimately, lenders individually decide who is and is not approved for a conventional loan. Borrowers should be prepared to supply at least two years of W-2’s, tax statements, bank statements, and proof of cash reserves and submit to a credit report.
- Clients should have good or better credit – at least 620 or higher, and a low debt-to-income ratio.
- For most conventional loans, a 20% down payment is required.
FHA Loans
FHA loans are an awesome option when it comes to home financing. They have great benefits, such as a minimum of only 3.5% down payment. These non-conventional loans are secured by the Federal Housing Administration and are funded by private lenders.
Basic FHA Loan Requirements
- FHA loans are a much more accessible financing option with lessened requirements and added benefits such as:
- 550+ Credit Score
- 3.5% Down Payment(Compared to 20% conventional)
- Fixed interest rates
- The ability to have some or all closing costs covered by the seller or the lender.
- If you would like to make repairs to your existing home, FHA also offers 203(k) mortgages for home repair.
VA Loans
A VA loan is a mortgage loan available through a program established by the U.S. Department of Veterans Affairs (VA) (previously the Veterans Administration). With VA loans, veterans, service members, and their surviving spouses can purchase homes with little to no down payment and no private mortgage insurance and generally get a competitive interest rate.
Basic VA Loan Requirements
- You have completed at least 90 days of active duty service.
- You have at least six years of service in the Reserves or National Guard .
- You have served at least 181 days of active duty service during peacetime.
- You have 90 days of cumulative service under Title 10 or Title 32. For Title 32 service, at least 30 of those days must have been consecutive.
- You’re the spouse of a military service member who died in the line of duty, or as a result of a service-related disability.