Home Loan Programs
Explore various loan program options for fixed and adjustable rate mortgages.
What's The Right Loan For You ?
The first step to home ownership is applying for a loan, but which one best suits your needs? Here’s a look at your home loan options.
Conventional Loan
Conventional loans are best for those with good credit and a low debt-to-income (DTI) ratio. Also, when you pay 20% down, you’re not required to pay for private mortgage insurance (PMI).
FHA Loan
FHA loans are backed by the government and are popular with first-time homebuyers looking for a low-down payment. The credit score requirements are also more lenient.
VA Loan
If you’re a qualified service member, veteran, reservist, or surviving spouse, a VA loan requires no money down, and you do not have to pay private mortgage insurance.
Rehab Loan
A rehab loan covers the cost of the home you’re purchasing and provides additional funds for renovations. Both costs are wrapped up into one convenient loan.
Reverse Mortgage Loan
A reverse mortgage loan is a loan taken against home equity. It’s paid back when the borrower no longer lives in the home, and the amount due increases over time with interest and fees.
Non-QM Loan
Non-QM (Non-Qualified Mortgage) loans are for non-traditional borrowers, such as self-employed or seasonal workers, those who are credit-challenged, or those who have difficulty qualifying for a traditional loan.
Jumbo Loan
Jumbo mortgage loans are for those interested in purchasing a higher-priced property that exceeds the area’s maximum loan amount set by Fannie Mae and Freddie Mac.
HELOC
A home equity line of credit, or HELOC, is a revolving type of secured loan in which the lender agrees to lend a maximum amount within an agreed period, where the collateral is the borrower’s property.
More Mortgage Options
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FAQs
Credit scores are not the end-all and be-all requirement for mortgage applications. But they do play a big part in home loans. You can still qualify if you have a low credit score, but you may end up paying a higher interest rate. And that means you would end up paying more throughout the lifespan of your mortgage.
Your debt-to-income (DTI) ratio is an indication of your overall financial health. To determine your DTA, first add up all of your monthly bills (i.e., rent, auto loans, credit cards, student loans). Do not include expenses like groceries, utilities, or gas for your vehicle. Next, divide the total by your gross monthly income (your income before taxes). The calculation will give you your DTI (a percentage). The lower your DTI percentage, the better.
Yes. While a pre-approval is a wise move when you’re ready to begin your home buying journey, it is considered a hard inquiry on your credit report.
With a fixed-rate loan, the interest rate never changes throughout the life of the loan. As a result, many homebuyers prefer a fixed-rate loan because it provides them with a stable mortgage payment.
An adjustable-rate mortgage will fluctuate as interest rates change. It will stay the same during an introductory period (months or years depending on the loan). Then once that fixed period ends, the interest rate fluctuates periodically (i.e., every six months). It’s a bit of a gamble but can pay off if interest rates decrease.
Mortgage points are a way for you to lower the interest rate on your loan. You pay an upfront fee. Each point costs you 1 percent of your total mortgage amount and will typically reduce your interest rate by 0.25 percent.