Loan Options

There are several types of mortgage loans. Your lender will help you determine which is best for you and your circumstance.

CONVENTIONAL MORTGAGE

• Usually amortized over fifteen to thirty years
• Usually available for home purchase or refinance
• Fixed rate, adjustable rate, balloon loan, interest only, 3 option, etc.
• Minimum down payment as low as 5%, but usually 10%; less than 20% down payment requires PMI (private mortgage insurance)

FEDERAL HOUSING ADMINISTRATION MORTGAGE

• Loans insured against default by the United States government
• Down payment usually less than 10%
• FHA adjustable rate mortgage has 1% rate increase with 5% lifetime rate increase
• All FHA mortgages requires mortgage insurance

VA MORTGAGE

• Buyer can finance up to 100% of sale price
• Buyer must have VA eligibility certificate
• Veteran can use VA program more than once
• Funding fee to guarantee the loan can be financed into the loan or paid in cash by buyer or seller