Loan Programs

  1. Fixed Rate and Adjustable Rate Loans
    • A fixed rate loan is a great choice if you are planning on being in your for a number of years.
    • An adjustable rate mortgage (ARM) might be a good option to boost your purchasing power when you plan to stay in the home for just a few years.
  2. Conventional
    • Whether fixed rate or adjustable rate, a conventional loan provides great rates, flexible down payment options and low closing costs.
    • There are conventional programs for down payments of 20%, 10%, 5%, 3% and as low as 1% down … and anywhere in between.
  3. VA
    • These loans are guaranteed by the U.S. Department of Veterans Affairs (VA)
    • No down payment required
    • No monthly mortgage insurance
    • VA loan rates are usually more competitive than with other loan programs because the lenders assume less risk due to the backing by VA so they are a little more flexible with their pricing.
    • VA loans are easier to obtain because the qualification standards are less strict … again, due to the VA assuming some of the risk, the lenders are more flexible with their qualification guidelines.
  4. FHA
    • These loans are insured by the Federal Housing Administration
    • Down payment as low as 3.50%
    • There is monthly mortgage insurance required on these loans which protects the lender from loss in case the borrower defaults on the loan.
    • FHA loan rates are usually more competitive than with other loan programs because the lenders assume less risk due to the backing by FHA so they are a little more flexible with their pricing.
    • FHA loans are easier to obtain because the qualification standards are less strict … again, due to the FHA assuming some of the risk, the lenders are more flexible with their qualification guidelines.
  5. USDA
    • These loans are issued through the United State Department of Agriculture (USDA) loan program.
    • No down payment required
    • The mortgage insurance requirement on a USDA loan is much lower than for FHA and conventional loans.
    • There are household income caps for this program.  See if you meet the income eligibility.
    • There are location restrictions so if you have an address in mind, check to see if the property is an eligible address.