What Are Your Available Loan Options?
With many different loan options available on the market, it can be difficult to decide which one fits your needs best. We've explained each type of loan package below, helping you make an educated decision on your future.
Depending on your circumstances, you may qualify for one or more of the following options. We'll help guide you through this process to ensure you get a secure choice with the most benefits.
FHA Loans
FHA Loans
An FHA loan is a home loan the Federal Housing Administration insures. FHA loans require a smaller down payment and lower closing costs, and allow relaxed lending standards to help homeowners who don't qualify for a conventional mortgage. FHA loans allow a down payment of as little as 3.5% on a mortgage.
This can make it possible for lower- and middle-income borrowers to buy a house when they don't qualify for a conventional loan, which has stricter requirements including a higher credit score and bigger down payment. The downside is mortgage insurance premiums usually last the life of the loan.
Why FHA?
- Relaxed credit qualifications
- Lowest required down payment
- Easiest to qualify
- Perfect for first-time home buyers
VA Loans
VA Loans
A VA loan is a home loan the U.S. Department of Veteran Affairs insures and guarantees. A VA loan remains one of the few mortgage options for borrowers who don't have the money for a down payment. Available to millions of veterans and active military members, VA loans are easier to qualify for than conventional loans.
While these loans do not require mortgage insurance, there usually is an upfront VA funding fee, which can be rolled into the loan or paid by the seller. VA loans allow borrowers to qualify for 100% financing and a number of other benefits.
Why VA?
- 0% down payment
- No mortgage insurance premium
- Lower interest rates
- Relaxed credit qualifications
Conventional Loans
Conventional Loans
A conventional loan is a mortgage that is not guaranteed or insured by the Federal Housing Administration (FHA), the Department of Veteran Affairs (VA) or any other government agency. These loans are geared for borrowers with higher credit scores and large available funds for a down payment (typically 5-20%).
Conventional loans have products that provide borrowers more flexibility. Additionally, private mortgage insurance is removed at an LTV (loan-to-value) ratio of 80% or less.
Why Conventional?
- More streamlined process
- Reduced or NO mortgage insurance premium
- No mortgage insurance premium equals a lower payment
- Typically higher loan limits
Jumbo Loans
Jumbo Loans
Jumbo loans are mortgages that exceed the conforming loan limits set by the Federal Housing Finance Agency. These loans are designed for purchasing high-value properties that exceed the standard lending limits in your area.
Because jumbo loans carry more risk for lenders, they typically require higher credit scores, larger down payments, and more cash reserves. However, they offer the flexibility to finance luxury homes and investment properties.
Why Jumbo?
- Finance high-value properties
- Competitive interest rates
- Flexible terms available
- No conforming loan limits
Non-QM / Investor Loans
Non-QM / Investor Loans
Non-QM (Non-Qualified Mortgage) loans are designed for borrowers who don't fit the traditional lending criteria. These include self-employed individuals, real estate investors, and those with non-traditional income sources.
These loans use alternative documentation methods like bank statements instead of tax returns. DSCR (Debt Service Coverage Ratio) loans are also available for investment properties, where qualification is based on the property's rental income.
Why Non-QM?
- Bank statement qualification
- DSCR loans for investors
- Flexible income verification
- Perfect for self-employed borrowers
Refinance
Refinance
Refinancing allows you to replace your current mortgage with a new one, potentially securing a lower interest rate, reducing your monthly payment, or accessing your home's equity through a cash-out refinance.
Whether you want to lower your rate, shorten your loan term, or tap into your home equity for renovations or debt consolidation, refinancing can be a powerful financial tool when the time is right.
Why Refinance?
- Lower your interest rate
- Reduce monthly payments
- Access home equity (cash-out)
- Shorten your loan term
Confused about your loan options?
There are a plethora of loan packages available on the market. We'll help you pick the perfect option to suit all your needs.