Loan Types Offered

Conventional Loans

The dominant number of loans made in the conventional market use Fannie Mae and Freddie Mac guidelines for conforming loans.  Conventional loans are “conforming” if they are generally $726,200 or less for a single-family home. Most conventional loans require somewhere between 5 percent and 20 percent down “Anything below a 740 credit score and they (lenders) are going to start adding fees which can be quite sizable, in the several-percent range, as borrowers’ credit scores drop compared to loan-to-value (LTV).”

FHA Loans

FHA loan require a low downpayment of 3.5%.  This program allows a home buyer who might otherwise not qualify for a home loan to obtain one because the risk is removed from the lender by FHA who insures the loan for the lender. The main advantage of an FHA home loan is that the credit criteria for a first time borrower are not as strict as Conventional Loans sold to Fannie Mae (FNMA) or Freddie Mac (FHLMC). Someone who may have had a few credit problems or no traditional credit should not have a problem obtaining FHA financing.

VA Loans

Congress created the VA Loan Guaranty Program in 1944 to help returning service members achieve the dream of homeownership.  By far the most significant benefit of a VA loan is the borrower’s ability to purchase with no money down.  VA loans also come with less stringent underwriting standards and requirements than conventional loans. In fact, about 80 percent of VA borrowers could not have qualified for a conventional loan. Since its creation, the Department of Veterans Affairs has helped more than 18 million military members purchase homes. 

USDA Loans

USDA guaranteed home loans are a 100% loan that can assist most individuals and families in rural areas become homeowners. The primary purpose of the USDA Guaranteed Rural Housing Program is to help moderate and low income borrowers qualify for a mortgage loan, even if they cannot afford to make a down payment.