Home Loan Options for Everyone

A conventional loan is a mortgage that is not guaranteed or insured by any government agency, making it more challenging to qualify for. But, it often tends to be more flexible as far as properties you can choose from, fees, and loan structure. If you have a good credit score, here are some of the benefits from a conventional home loan:

• As little as 3% down payment
• No private mortgage insurance (PMI) with 20% down
• PMI removed at 78% loan-to-value (primary residences)
• Down payment assistance programs available

An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment or have a less than ideal credit score.

• As little as 3.5% down payment
• Lower credit scores
• Higher debt-to-income percentages
• Down payment assistance programs available

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs. The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry).

• 0% down payment
• Must meet VA entitlement qualifications
• Upfront fees may be rolled into loan (VA waives for certain military status/disability ratings)
• Discounted closing costs
• No monthly mortgage insurance

A USDA loan, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture.

• 0% down payment
• Property must be located in a qualified area
• Maximum household income limits apply (varies by state/county)
• Upfront fee to USDA can be rolled into the loan
• Minimal monthly mortgage insurance