Conventional: A “normal” loan that is typically purchased in the secondary market by Fannie Mae or Freddie Mac. This can include specialty or “portfolio” loans held in a Lender’s portfolio.
• Typical minimum Credit Score to qualify: 620 and above
• Typical minimum down payment: 3%-20% of purchase price
• Many different Fannie Mae/Freddie Mac programs available
• There are many specialty and portfolio loans that allow for lower scores but have very specific guidelines
FHA: Loans secured/guaranteed by the Federal Housing Administration (FHA)
• Typical Credit Score range to qualify is: 580 and above*
• Typical minimum down payment is: 3.50% of purchase price
• More flexible Credit and Income guidelines to qualify
• Some lenders have lower minimum credit score requirements but tighter guidelines to qualify
• For all 30-year fixed mortgages (regardless of down-payment), there’s Mortgage Insurance
• Less Stringent guidelines regarding Assets and down-payments
VA: Loans guaranteed by the Veteran’s Administration
• Must be qualified Veteran
• Minimum Credit Score to qualify 560*
• Minimum Down Payment 0%
• Interest Rates are among the lowest in the market
• No Mortgage Insurance
• “Funding Fee” applied to Loan principal at closing depending upon exemption eligibility of the borrower
USDA: Loans Guaranteed by the United States Department of Agriculture. These loans are designed to make housing available in Rural areas and are determined for eligibility by zip code.
• Typical Minimum Credit Score is 600
• No Minimum Down payment
• 2% Up front Mortgage Insurance (Similar to FHA and VA)
• Much smaller Monthly Mortgage Insurance rates
√ We analyze CIA- Credit, Income & Assets.
√ We discuss Loan Programs.
√ We review Loan Process, Expectations & Timelines.
√ We review Initial Estimates.
√ Search for homes with your Realtor
√ Ratified Contract
√ Home Inspection
√ Appraisal
√ Bank Underwriting = Formal Review of CIA, Appraisal, & other Important items
√ Final Review of Closing Figures prior to settlement
√ Final Documents are Printed & Ready
√ Sign & Get those Keys !!!
√ We analyze CIA- Credit, Income & Assets
√ Initial determination of available “Equity” in the home
√ Discussion of Loan Programs
√ Review of Loan Process, Expectations & Timelines
√ Review of Initial Estimates
√ Want a Lower Interest Rate and lower Monthly Payment?
√ Want to use equity to pay down debts or other reasons?
√ Want a lower Term?
√ Want to get rid of PMI?
√ Bank Underwriting = Formal Review of CIA, Appraisal, & other Important items
√ Final Review of Closing Figures prior to settlement
√ Final Documents are Printed & Ready
√ Sign & Enjoy Your weekend!
Our average timeline for refinances from application to closing is: 19 calendar days.
* These items are calculated differently than normal working income. Furthermore, they require documented proof they’ll continue for at least a period of three years.