Home Loan Options

Conventional Loan

A conventional loan is suitable for borrowers with good to excellent credit scores and a low debt-to-income ratio. Conventional loans require down payments as low as 3% but in order to avoid private mortgage insurance a 20% down payment is needed. Loan limits may go as high as $647,000. Conventional Loans can have a fixed rate or adjustable rate for its mortgage terms.

Federal Housing Administration Loan

FHA loans are ideal for low-to-moderate-income borrowers who may have lower than average credit scores. FHA loans require lower down payments and credit scores than many conventional loans. FHA loans may be a better option for first time homebuyers.

VA Loan

To be eligible for a VA loan, you must be active military, a veteran or a surviving spouse of a veteran, as defined by VA. Zero down payment is required for a VA loan and does not require mortgage insurance.

Jumbo Loan

Jumbo loans are for borrowers needing a loan amount that exceeds conventional loan maximums set by the Federal Housing Finance Agency (FHFA). Loans that exceed the local conforming loan limit will require a jumbo loan option.

Lot Loan

A lot loan is a mortgage for parcels of land which is intended for residential development. This loan is strictly for the purchase of the land and not for the construction of the home.

Home Equity Loan

A home equity loan is a type of loan in which the borrower uses the equity of their home as collateral. Home equity loans are often used to finance major expenses. A home equity loan reduces the equity of the home and also creates a lien.

Purchase

A purchase is a loan that a bank or lender finances the purchase of the home. The home itself acts as collateral in exchange for the money you are borrowing to finance the home. Typically, your monthly payment breaks down into four parts: principal, interest, taxes and homeowner’s insurance, but may also include private mortgage insurance.

Refinance / Cash-Out Refinance

A refinance is ideal for a borrower that is looking to lower their current mortgage’s interest term and interest rate. A refinance may also be ideal in order to eliminate mortgage insurance.

Refinances also offer a cash-out option. This is for borrowers looking to pull equity out of their current mortgage for things such as consolidating debt or paying college tuition. A cash-out refinance may be more ideal than a home equity line of credit because interest rates tend to be lower.