Home Financing Guide
Trying to decide which loan is right for you?
Residential Loans
FHA Loans:
Backed by the Federal Housing Administration, FHA loans are designed to assist homebuyers with limited down payment capabilities. They provide a government-backed pathway to homeownership, making it accessible for individuals with modest financial resources.
VA Loans:
Exclusively for military veterans, VA loans offer a unique opportunity with low or no down payment requirements. These loans provide eligible service members and veterans with favorable terms and government-backed financing options.
Conventional Loans:
Conventional loans are suitable for buyers with a strong credit history and financial stability. Unlike government-backed loans, they follow guidelines set by private lenders and typically require a larger down payment.
USDA Loans:
Aimed at promoting homeownership in rural and suburban areas, USDA loans offer low to zero down payment options. These loans are designed to support buyers looking to reside in eligible rural zones.
First-Time Homebuyer Loan Types
FHA Purchase Loans:
- Low down payment requirement (as low as 3.5%).
- Flexible qualification criteria.
- Competitive interest rates.
- May be available to borrowers with lower credit scores.
- FHA 203(b) Standard Mortgage Insurance Program:
- Supports the purchase or refinancing of one to four-unit residential properties.
- Mortgage insurance protects the lender in case of borrower default.
FHA 203(k) Rehabilitation Mortgage Insurance Program:
- Enables financing for both the purchase and rehabilitation of residential properties.
- Ideal for buyers interested in fixer-upper homes.
FHA Energy Efficient Mortgage (EEM):
- Finances energy-efficient improvements along with the purchase of residential properties.
- Potential to increase the loan amount for energy-efficient upgrades.
- Long-term cost savings on utility bills.
FHA Condo Loans:
- Designed for the purchase of condominium units.
- Expands housing options for FHA buyers.
FHA Reverse Mortgage (Home Equity Conversion Mortgage – HECM):
- Provides financial options for seniors aged 62 and older.
- Allows homeowners to convert home equity into cash.
