Are you having trouble deciding which loan might be right for you? Look at the information below to help you determine which loan will be best.
Conventional Loans
Ideal for individuals with:
- Good to exceptional credit
- Have at least 5.0% for a down payment (some conventional 3% programs are available)
- Lower PMI than FHA (may depend on credit score)
- Investment properties (down payment as little as 15% in some cases)
- Down payment can be gifted
- Will allow for a non-occupant co-borrower with owner occupied rates
FHA Loans
Ideal for individuals with:
- All credit types
- Shorter wait times than conventional on derogatory credit issues (Bankruptcy, foreclosure, short sale, etc…)
- Can be easier to qualify for first time home buyers
- Only requires 3.5% for a down payment
- Down payment can be gifted
- Will allow for a co-signer
- More flexible on debt to income ratios
- Easy streamline refinance program (certain restrictions may apply)
- You are limited on loan amount depending on the county in which you live
VA Loans
Ideal for individuals with:
- Veterans with VA eligibility
- 100% financing
- NO PMI required (VA will charge an upfront funding fee)
USDA Loans
Ideal for individuals with:
- Live in rural areas that qualify
- Need 100% financing
- Make less than the median income
2nd Mortgage / Home Equity Line of Credit
Ideal for individuals with:
- Purchases to avoid mortgage insurance (need to put down at least 10% to utilize a HELOC)
- Home Improvements
- Consolidate Debt