Choosing the loan that is right for you is essential to a less stressful home buying experience. There are a variety of loans available to meet every need. All Financial Services will help you to choose the loan that best suits your needs.
A conventional loan is a great option if you have a solid credit score and little debt. Conventional loans can offer borrowers more flexibility regarding the condition of the home and can save you money on your monthly payment.
FHA insured loans were designed to offer affordable homeownership for low to moderate income applicants who require greater flexibility with credit guidelines compared to conventional loan offers. Now FHA offers much, much, more.
USDA loans are designed for homebuyers in rural locations who may need greater flexibility than what is offered on a conventional loan. The goal of the USDA’s loan program is to provide insurance for mortgage lenders so that they can offer mortgages to low- to moderate-income home buyers in eligible areas. In most cases the required down payment on these loans is “zero”.
A jumbo mortgage is designed to meet the needs of homebuyers who require financing on properties with higher price points where the loan amount is higher than the conforming (other loan programs) loan limits.
VA loans are available to military veterans and active service men and women. These loans are easier to obtain with “zero down payment” options and no monthly mortgage insurance.
A credit score of at least 620 and a stable employment history.
Conventional loans are not insured by the federal government.
Conventional loans may be fixed or adjustable interest rate loans. They can be used to purchase or refinance a primary residence, an investment property, and a second/vacation home.
Down payment amounts can be as low as three percent of the purchase price.
Yes. The length of conventional loans terms can range from 10-30 years.
Yes. For example, a conventional loan may enable you to purchase a home in a high-cost area.
Yes. Conventional loans can be used to purchase properties beyond the one you live in. You can purchase a second home, an investment home, etc.
Partially insured by the Federal Housing Administration (FHA), these loans lessen a lender’s risk when offering loans to buyers with limited funds for down payment and/or with imperfect credit. Credit scores as low as 550 are allowed for fixed-rate loans.
Both fixed-rate and adjustable-rate mortgage (ARMs) are offered.
You may finance a single-family home, 2–4-unit property, modular home, condominium, a Planned Unit Development
(PUD) property or a mixed-use property (one that is used as both a residence and for business/commercial purposes). Also, you must live in the home you purchase with an FHA loan. You can’t purchase an investment property or second home with an FHA loan.
You may qualify to buy with a down payment as low as 3.5 percent of the purchase price of the home.
Your initial interest rate may be reduced for 1-2 years through a temporary buy down–a portion of monies released monthly from a lump sum contributed to an account.
VA loans are available for military veterans or active service men and women, with certain number of years of service, and are partially insured by the Veterans Administration (VA).
VA loans are for the primary residence only, which can be a single-family residence, a 2–4-unit property, a VA-approved condominium, a manufactured home, or a property in Planned Unit Developments (PUDs). Additionally, the home you buy with a VA loan must be the one you live in. You cannot purchase an investment or vacation home.
VA loans have easier qualifying guidelines with down payments as low as zero percent.
Applicants with a minimum credit score of 580 to 619 are subject to stricter guidelines but can still obtain financing.
Adjustable-rate mortgages (ARMs) require a minimum 620 credit score.
High-balance loan amounts up to $1 million may be available.
Fixed and variable rate mortgage loans are available.
Any loan amount above the high-cost loan limits set by the Federal Housing Finance Agency (FHFA).
Loan amounts up to $10 million can be borrowed.
Down payments can be as low as five percent (but generally are 10%) of the purchase price.
Yes. Jumbo loans can be fixed or adjustable rate and are not limited to 15-year and 30-year terms.
Single-family residences, warrantable condominiums, and properties in Planned Unit Developments (PUDs) can be
purchased with a jumbo loan.
The USDA's definition of "rural" is liberal, meaning many in small towns, suburbs and exurbs of major U.S. cities meet the "rural" requirement.
USDA Loans are one of the last $0 down mortgages with 100% financing, competitive fixed rates, no cash reserves required, guarantee fee can be financed, resulting in low out-of-pocket costs.
USDA Loans are designed to provide financing for low to moderate income households who are looking to purchase a home in eligible rural areas.
The funds can be used to purchase a home, complete minor repairs/renovations on an existing home, or to build a new home.
Having a checklist to guide you through the home buying process will ensure that you know where you are in the process and allows you to know what to expect.