CONVENTIONAL

Conventional loans are not insured or guaranteed by the government and mortgage insurance is therefore purchased from private mortgage insurance companies when required (i.e. the term PMI), typically when less than 20% down payment on a purchase or less than 20% equity if refinancing. While not insured or guaranteed by the government, Conventional loan guidelines are dictated by government sponsored agencies (GSAs), the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Conventional loans may permit as little as 3% down payment from the buyers own funds when purchasing a home, with PMI of course.

FHA (FEDERAL HOUSING ADMINISTRATION)

FHA loans are insured, and guidelines dictated, by the Federal Housing Administration under the Department of Housing and Urban Development (HUD). FHA loans permit buyers to buy a home with a down payment as low as 3.5% and allow gift funds from family to meet this requirement. FHA loans also allow financing of improvements or repairs whether buying or refinancing a home. Buyers need not be first-time buyers and there are no income limits but loan limits do apply. FHA loans have been among our specialties for decades as a HUD Direct Endorsed (DE) Lender.

MORTGAGE LOAN TYPES

VA (VETERANS ADMINISTRATION)

VA loans are guaranteed by, and guidelines dictated, by the Veterans Administration. Available to eligible veterans or eligible surviving spouses of veterans to buy or refinance a primary residence, VA loans permit buyers to buy with no down payment and have somewhat less stringent credit guidelines than other loan types. Veterans may utilize their eligibility multiple times if desired but typically only have one VA loan at a time. VA loans have been among our specialties for decades as a VA Lender.

USDA RD (RURAL DEVELOPMENT)

Rural Development loans are guaranteed, and guidelines dictated, by the Rural Housing Service (RHS) under the United States Department of Agriculture (USDA). Available for buyers of primary residences in designated rural areas, RD loans have somewhat more lenient credit guidelines than other types of loans and require no down payment. Borrowers may also finance closing costs under certain circumstances. Household income and property location limitations apply. RD loans are among our specialties and we underwrite RD loans for approval prior to obtaining RHS approval for closing.