First Time Home Buyers

3 Types of Loans Used By Most Homeowners:

 

I. (FHA) The Federal Housing Administration

Key elements of FHA-insured loans include:

  • Low down payment
  • Minimal closing costs
  • More flexible credit-qualifying guidelines
  • No income limits
  • Higher debt ratios permitted
  • Less stringent job requirement guidelines

 

II.  (VA) The U.S. Department of Veterans Affairs 

Key elements of VA-insured loans:

  • Competitive interest rates
  • Easier qualification requirement
  • Borrower does not have to pay for private mortgage insurance

 

III.  Conventional Loans are protected by Fannie Mae (FNMA) & Freddie Mac

Key elements of Conventional loans:

  • Lower Fees: Fees associated with Conventional loans frequently are lower than other loan products.
  • Interest Rates: Lenders determine the rates to offer borrowers based on their credit scores.
  • Able to finance a home that is over the maximum loan amount of $424,100.Enables a borrower to purchase “more house