Program Descriptions

Most loan programs contain different features that can be confusing for even experienced homeowners. The most common loan programs include:

FHA Loans | VA Loans | Conforming | Jumbo |  USDA Loans

Federal Housing Administration (FHA)

The Federal Housing Administration is a division of the U.S. Department of Housing and Urban Development, commonly referred to as HUD. FHA loans were created to provide affordable mortgages to the average homebuyer. The federal government insures FHA loans, or guarantees participating lending institutions against loss from default on qualifying loans.

Programs and Features:

  • Fixed Rate Loans, Temporary Buy-Downs and ARMS
  • Available for detached 1 to 4 unit dwellings, eligible condos and PUD's
  • Properties must meet HUD guidelines and be inspected by HUD-approved appraisers
  • Subject to loan limits set by HUD (see HUD web site for loan limits)
  • Mortgage insurance of 1% to 1.35% based on LTV, due annually and paid monthly
  • One time mortgage insurance fee of 1.75% charged on detached dwellings and PUD's, which may be financed
  • Non-occupant co-borrowers allowed
  • No reserve requirements at closing
  • 100% of down payment and closing costs may be a "gift"
  • Fully assumable by a qualified borrower
  • Seller may contribute a maximum of 6% of the lower of the sales price or the appraised value

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Veterans Administration (VA)

Veterans Administration loans were created to help veterans finance the purchase of their homes with favorable loan terms. For the purpose of the VA program, "veteran" includes active duty service personnel and certain categories of spouses. Like FHA loans, the federal government insures VA loans, or guarantees VA approved lending institutions against loss from default on qualifying loans.

Programs and Features:

  • Fixed Rate Loans and Temporary Buy-downs
  • Available for detached 1-unit dwellings, eligible condos and PUD's
  • Properties must meet VA guidelines and be inspected by VA-approved appraisers
  • Subject to loan limit set by VA. Contact us for current limits in your area.
  • One time mortgage insurance fee is typically charged, which may be financed if the total loan amount does not exceed the loan limits set by VA.
  • No prepayment penalty
  • No reserve requirements at closing
  • No down payment required
  • Out-of-pocket expenses may be gifted, typically from relatives
  • Only eligible veterans and their spouses occupying the subject property may be co-borrowers or co-signers
  • Seller may contribute a maximum of 6% of the lower of the sales price or the appraised value

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Conforming Loans

Conforming Loans are those that meet Fannie Mae and or Freddie Mac underwriting requirements. In other words, income, credit, and property requirements must meet nationally standardized guidelines. Conforming loans are subject to loan amount limits that are set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These limits vary based on the region in which the subject property is located as well as the number of legal units contained in the subject property.

  48 States Hawaii & Alaska
1 unit property $417,000 $625,500
2 unit property $533,850 $800,775
3 unit properties $645,300 $967,950
4 unit properties $801,950 $1,202,925

Under the FNMA and FHLMC Charter Acts, the loan limits are 50% higher for first mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

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Jumbo and Non Conforming Loans

Jumbo loans are those that exceed the loan amounts allowed by FNMA and FHLMC.

Programs:

  • ARMs
  • Fixed Rates
  • Credit History Less than perfect
  • Options Available

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USDA Loans

USDA Home Loans supplies 100% financing for a home purchase, or refinancing in a USDA designated rural area. USDA home loans are guaranteed by the United States Department of Agriculture and are serviced by direct lenders that meet federal guidelines.
 
The USDA home loan program extends many financial benefits to those who qualify including no down payment for the purchase of a home. USDA home loans also come with no monthly mortgage insurance, flexible credit guidelines, and low interest rates.
 

 

USDA home loan eligibility is based financial history and the property you are choosing to purchase. Please contact on or our Loan Professionals who will be able to inform you on how much you can afford and what your estimated monthly payment will be.

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