When it comes to buying a home, one of the most common questions we hear is, "What type of mortgage is best?" This is a great question, but the answer will vary based on your personal plans and situation. We have put together this helpful reference guide to give you an overview of some of the mortgage programs that are currently available.

100% Financing Still Available:

  • USDA Rural Housing:  NO minimum credit score, NO mortgage insurance, NO max loan amount         
    • Property Restrictions Apply
    • Income Restrictions Apply
  • VA:  Must be a Veteran of the Armed Forces

 

House Key:  First Time Homebuyer Programs:

  • Only 1-2% buyer funds required – funds can be gifted from a family member
    • Income & Purchase Price limitations Apply
  • Mortgage Credit Certificate Program (MCC):
    • Works with both FHA and Conventional Programs
    • Gives a tax credit every year for the life of the loan
    • The tax credit may be used to help qualify for a higher mortgage amount
    • Income & Purchase Price limitations Apply

 

97% Financing:

  • FNMA Flexible Mortgage:
    • 680 MIN Credit Score
    • LOWER payments than FHA with SAME or less costs
  • FNMA My Community:
    • Loan to value up to 105% of purchase price with a community 2nd
    • Income Restrictions Apply
  • FNMA Home Path – For Purchase of Fannie Mae Bank owned properties only
    • NO Mortgage Insurance
    • Only 3% down for Owner Occupied properties
    • Only 10% down for Investment Properties

 

Rehab Loan:  FHA 203(k) Streamline:  Allows buyer up to $35K to do home improvements as part of purchasing the home. 

  •  
    • Upgrades include Carpet, paint, flooring, etc.
    • Excellent program for Bank Owned Homes
    • Purchase ONLY
  • Repairs must be cosmetic in nature, no structural repairs allowed

 

Manufactured Homes:

  • MIN 680 credit score required
  • 90% max loan to value

 

High Balance Loans:  Loans between $417,001 & $567,500:

  • Conventional:  Requires MIN 700 score up to 90% loan to value
  • FHA: Requires MIN 640 score up to 96.5% loan to value

 

Investors:

  • Financing available for up to 10 properties
  • Fannie Mae Home Path up to 90% financing with NO mortgage insurance

 

Jumbo Loans:

  • Loan amounts up to $2.5 Million
  • Loan to value up to 80%