As the buyer, you will have the opportunity to choose which loan best fits your situation. Some buyers may qualify for all types of loans, while others won't. Be mindful that not all loans can be used for all types of properties. Provided below is a list of common loans you can choose from. ​

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Government Loans

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Federal Housing Administration (FHA 203b) Loan

This type of loan requires 3.5% down. A buyer can qualify with at least a 580 FICO score. FHA Loans are insured by the Federal Housing Administration. Applicants are required to pay mortgage insurance for the life of  the loan (unless refinanced) which only protects the lender should the buyer default on their loan. Buyers are eligible to purchase single family homes and/or up to a multi-unit home (up to 4 units/apartments).

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Federal Housing Administration (FHA 203k) Loan

Very similar to the FHA 203b loan, the FHA 203k loan permits buyers the opportunity to renovate their newly purchased home. The loan includes the purchase price of the property plus the cost of renovations. Renovations must amount to at least $5000. Buyers must use a Licensed Contractor for all renovations.

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Veteran's Affairs (VA) Loan

Active members of the military should be eligible after  6 months of service. Past members of the Military, National Guard, Veterans, or reservists are eligible to apply for this loan. In addition, spouses of military members who passed while on active duty, as a result of a service related death, or disability may also be eligible. VA Loans require 0% down, however, buyers are able to put additional money down if they choose to. 

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Fixed Rate Mortgages

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In today's market, it is best for buyers to apply for a Fixed Rate Mortgage if the goal is to reside at the property long-term. Fixed Rate Mortgage promise the buyer a steady and consistent interest rate for the life of the loan. Below you will find a breakdown of the various Fixed Rate  Mortgages. 

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15 Year Fixed Rate - Provide lower interest rates. Increased monthly payments compared to a 30 year Fixed Rate Mortgage. Potential to pay the loan off quicker. 

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20 Year Fixed Rate - Lower monthly payments when compared to a 15 year Fixed Rate Mortgage. 

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30 Year Fixed Rate - Lowest monthly payments when compared to a 15 to 20 year fixed rate mortgage. Most popular among buyers today. Provides flexibility in a buyer's finances. Typically provides the buyer with the advantage of purchasing a larger home (financially) when compared to a 15 year Fixed Rate Mortgage. 

 

Conventional Loans

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Conventional mortgages aren't typically insured by the Federal Government, but are regulated by either Fannie Mae or Freddie Mac. Eligibility for conventional loans varies per lender. However, the majority require a 620 FICO score. Most lenders will require either a 3% or 5% down payment. Mortgage insurance is still required for loans with a 80% LTV (loan to value). Conventional loans are typically used for buyers purchasing their second home, vacation home, or an investment property at 10% or 20% down. 

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