What Mortgage Is For Me

Dated: 06/03/2019

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Mortgage Calculator, house and key with Calculator


Buying a home can be stressful and confusing.  Who do I speak with about getting a loan?  What type of loan do I get?  What do I qualify for?  All these questions you may be asking yourself. Below I will help you learn about different types of home loans.  But ultimately your lender will qualify you for the best loan and best rate for your personal transaction.    

Products

Conventional Loans

A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac typically require down payments of at least 3%. Borrowers who put at least 20% down do not have to pay for mortgage insurance, which is typically required with FHA loans.

Conventional mortgage borrowers typically make larger down payments than FHA borrowers, and they tend to have a more secure financial standing and are less likely to default. A larger down payment means lower monthly payments. Plus, with the ever-increasing mortgage insurance premiums on FHA loans, payments for conventional loans that don’t require private mortgage insurance can be much more manageable in comparison.

In addition, with a conventional loan, you can cancel your mortgage insurance when the principal loan balance drops to 78% of the home’s value. FHA loans charge mortgage insurance premiums for the life of the loan.

Fannie Mae and Freddie Mac Product Lines Up to 97% LTV, 100% CLTV with gift funds

High Balance options

FHA Loans


The loan most people have heard of isFHA. FHA is short for the Federal Housing Administration. It’s a department within Housing and Urban Development (HUD) and is run by the Federal Government. FHA is geared toward first time buyers however; you do not need to be a first time buyer to utilize this loan. There are several benefits to FHA over other forms of financing.

Down Payment

First, it has a reduced down payment compared to conventional financing. FHA minimum down payment is 3.5% of the purchase price now. Additionally, these funds do not need to be the borrowers own funds. Borrowers are allowed to get money for a down payment from a gift from a relative, grants, employer, or a 401k loan.

Minimum Score:

Although FHA does not technically have a required minimum credit score, all loan investors and servicers have a minimum score of 580.

Rates:Yes, rates do tend to be a bit more aggressive with FHA as compared to Conventional Financing which is very sensitive to credit scores and higher loan-to-value loans. FHA is the best financing available for you both. Conventional interest rates would be quite a bit higher depending on scores and would require at least 3% down payment (620 required) or 20% down payment.

Easier credit qualifying, lower down payments and lower monthly payments all make FHA an excellent choice for first time buyers!

Up to 96.5% ltv

FICO scores to 580

Jumbo options available

Streamline with reduced Underwriting Fee

No QLMS Underwriting Fee

KEY TAKEAWAYS

  • FHA loans are federally backed mortgages designed for low-to-moderate income borrowers who may have lower than average credit scores.

  • FHA loans require a lower minimum down payments and credit scores than many conventional loans.

  • FHA loans are issued by approved banks and lending institutions, who will evaluate your qualifications for the loan.

  • These loans do come with certain restrictions and loan limits not found in conventional mortgages.


JUMBO

Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as “jumbo” loans. Because jumbo loans are bought and sold on a much smaller scale, they often have a little higher interest rate than conforming, but the spread between the two varies with the economy.

Loans to $3,000,000

FICO scores to 700

Up to 80% LTV


VA Home Loans

A VA home loan gives veterans, members of the military or a surviving spouse of a veteran the chance to refinance up to 100% or buy a home with no money down. Usually, these types of home loans are approved fast with minimal red tape.

Even if you have less-than-perfect credit, a VA loan might be the best for your financing situation. Other benefits of the VA home loan include it being offered as a fixed-rate or ARM mortgage that never includes monthly mortgage insurance. 

Terms of VA loans include several benefits:

  • No down payment is mandated unless required by the lender, or if the purchase price is above the established property value.

  • There is no private mortgage insurance premium requirement.

  • Closing costs are limited and may be paid by the seller.

  • The lender may not charge a prepayment penalty.

  • Assistance is available from the VA to help borrowers avoid default.

  • Many states offer additional benefits to veterans, such as property tax reductions.

100% LTV with 620 FICO

Jumbo and Correspondent options available

IRRRL Streamline

USDA Loans

USDA Loans used to be considered “farmers loans” but that is simply not the case anymore. Just about anyone looking to purchase a home outside a major metropolitan area can qualify for a USDA Loan.

Some of the eligibility standards that determine if you qualify for a USDA loan for your home include what county and zip code the home resides in, your current income and credit history, as well as the number of dependents you can claim.

Because these guidelines are very specific, it is important to work with a company that has experience dealing with USDA government financing to help determine your eligibility.  To See if the property your looking at buying is eligible for a USDA Loan Click here



If your looking to buy a home contact me today m, to see what special benefits I do for my clients.  I would love to help make this process as easy and stress free as possible.  If you are needing to speak with a Lender give Eros Dahl at Riverview Mortgage a call at  


Eros Dahl

Owner/ President/ Mortgage Loan Originator

NMLS: 968155

Office: 813-343-0110

Cell: 813-470-9720

Website 

Email: eros@riverviewmortgage.com


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Chris Stevens

I am Chris Stevens and whether you are buying or selling my main goal is to help you save the most money possible. I love helping my community with selling / buying real estate but love seeing the ex....

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