The Loan of Your Dreams
for the Home of Your Dreams
The right loan for you must be financially feasible, aligned with your goals as a homeowner, and will ultimately leave you in a better place than where you first started. We provide you with a full array of loan solutions so you can choose the one that best suits you.
Types of Loans
It’s imperative for you to have a full understanding of each loan type so you can make informed decisions. Take a minute to assess each loan type before you set your decision in stone.
What is a Conventional Loan?
Typically Conventional loans require at least 3% down. The entire down payment may come from a gift. Conventional loans have a monthly PMI payment if you put less than 20% down. The payment will vary based on credit score and down payment size and can be removed once you achieve 20% equity in your home. The seller can give you up to 3% of the sales price in Sellers Assist if you put less than 10% down or 6% if you put 10% or more down.
What is a FHA Loan?
Typically FHA loans require 3.5% down payment. FHA loans are a government insured loan program that is insured so you have to pay a “premium” just like any other insurance policy. There is a onetime fee of 1.75% but this is not due in cash at closing. This is typically added to the top of your loan balance. There is also a monthly PMI payment which does not vary based on credit score. The seller can give you a sellers assist of up to 6% of the sales price to cover your closing costs.
What is a USDA Loan?
USDA loans do not require a down payment. This is available to buyers who are located in a USDA approved area. USDA is a government insured loan so it does require a premium be paid. They have a one-time fee of 1% that is not due in cash at closing. This may be added to the top of your loan balance and will affect your payment only a small amount. USDA loans allow sellers to give 6% of the sales price in sellers assist to help cover closing cost. Typically your only costs would be an appraisal and inspection. There is a maximum income limit to qualify for the USDA loan, so it is possible that you can make too much to qualify for this loan. You can check this on their site.
What is a VA Loan?
Veterans and their spouses have the ability to purchase a home with no down payment and no PMI payment. VA loans are government insured loans who require a one-time premium be paid. This ranges from 1.5% to 3.3% based upon service type, use type and disability type. This fee is not due in cash at closing and can be added on top of the loan balance. VA loans allow the seller to give up to 6% of the sales price in seller’s assist.
How do you qualify for a VA Loan?
By meeting one of the following conditions:
- You have served 90 consecutive days of active service during wartime
- You have served 181 days of active service during peacetime
- You have more than 6 years of service in the National Guard or Reserves
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability
Finally, a veteran applying for a VA Loan must not have been discharged under dishonorable conditions.