Which loan works for you?

CONVENTIONAL FINANCING: Conventional loans are for borrowers who can make a down payment of at least 5% for a home purchase or for borrowers with at least 5% equity in their home when refinancing their home loan

FHA LOANS: FHA loans have a minimum down payment requirement of 3.5%. FHA has a more liberal qualifying formula than a conventional loan. FHA loans made before December 15, 1989 are fully assumable and can be creatively financed. Loans made after December 15, 1989 can be assumed at the same interest rate with qualification. FHA has more lenient underwriting guidelines on properties that are older or are located in undesirable neighborhoods. In some cases county loan limits may be inadequate in high cost areas. Appraisals may contain more repair requirements than conventional loans. When refinancing a FHA mortgage, no appraisal or income verification is required, however, the borrower must be current on the mortgage. This is also referred to as a FHA Streamline refinance.

VETERANS ADMINISTRATION (VA): It is possible for a veteran to obtain 100% financing of the home purchase price up to the current loan limit with absolutely no down payment, and the seller or builder is allowed to pay all of the veterans closing costs, making the total cash required to purchase a home, in some instances, zero. If the veteran desires higher priced homes, he generally is required to make a down payment on the amount exceeding the current guaranteed loan limit. Generally, the Veterans Administration is a little more liberal than conventional lenders would be with regard to the veteran's credit standing and qualifying for the VA loan, although recent VA underwriting changes make the qualifying criteria similar to conventional mortgages. When refinancing a VA mortgage, no appraisal pr income verification is required, however, the borrower must be current on the mortgage. This is also referred to as a VA Streamline refinance.

ALTERNATIVE LENDING: Alternative Lending is geared more toward marginal credit consumers and in most cases, if available, results in higher rates, ARMs, and/or pre-payment penalties.

JUMBO LOANS: Loans in excess of Fannie Mae / Freddie Mac loan limits are called Jumbo Loans and often carry higher interest rates. A Jumbo Loan minimum down payment requirement is 10%