There are numerous loan programs available. Because nobody’s plans or goals are exactly the same, it’s important to make sure the program you commit to makes the most sense for you and your family not only now, but in the future as well.
Below is an overview of some of the most common loan programs we use to help families we work with on a day in and day out basis.
Conventional
Most common down payment amounts: 3%, 5%, 10%, 15%, 20%
Attractive option for buyers with strong credit rating
Mortgage insurance required unless down payment of 20% or more. (Mortgage insurance automatically falls off loan when loan amount is 78% or less of original purchase price)
FHA
Most common down payment amount: 3.5% or 5%
Good fit for buyers with fair/average credit rating
Mortgage insurance required for the length of time you hold the FHA loan (You can refinance out of mortgage insurance into a conventional loan once your loan to value is equal to 80% or less of the homes value at the time of the refinance)
VA
Only available to eligible retired and active military service members
Most common down payment amount: 0% - although buyers can put money down up front if they elect to
No monthly mortgage insurance required
Jumbo
Most common down payment amount: 20% or 25%
Specifically built loan program for purchase prices ranging from $700,000 and above
Cash reserves required in addition to down payment requirements
Other Available Loan Programs
First Time Home Buyer - Various down payment assistance programs available, ask me for more information
Rate and/or Loan Term Refinance - Refinance options to either lower your interest rate and/or shorten the length of your loan term
Cash-Out Refinance - Refinance option to remove equity from your home in the form of cash to be used for things like debt consolidation or to pay for updates to your current home
Construction - Loans designed for new construction (new build) homes
Renovation - Loans designed for significant updates or upgrades to your current home
