There are different types of mortgage loans available and many details involved with each. Read about the various types of loans and contact us if you have any questions.

See how much you may qualify for and what grants and "zero down" programs may apply to you. Fill out our Mortgage Analysis Worksheet for a free mortagage credit analysis.

FHA LOANS

FHA insured mortgages can make it possible for buyer's who may not have perfect credit or a downpayment to buy a home. Here are some advantages:

Downpayment requirements can be low. In contrast to conventional mortgage products, which frequently require downpayments, single-family mortgages insured by FHA under Section 203(b) make it possible to reduce downpayments to as little as 3 percent and often that cost can be defrayed by using one of the grant or bond down payment assistance programs available.

Many closing costs can be financed. With most conventional loans, the borrower must pay, at the time of purchase, closing costs (the many fees and charges associated with buying a home) equivalent to 2-3 percent of the price of the home. This program allows the borrower to finance many of these charges, thus reducing the up-front cost of buying a home. FHA mortgage insurance is not free: borrowers pay an up-front insurance premium (which may be financed) at the time of purchase, as well as monthly premiums that are not financed, but instead are added to the regular mortgage payment.

Some fees are limited. FHA rules impose limits on some of the fees that mortgage companies may charge in making a loan. For example, the loan origination fee charged by the mortgage company for the administrative cost of processing the loan may not exceed one percent of the amount of the mortgage.

HUD sets limits on the amount that may be insured. To make sure that its programs serve low- and moderate-income people, FHA sets limits on the dollar value of the mortgage loan.

CONVENTIONAL LOANS

There are many conventional programs available today. The main difference, from my perspective in the real estate industry, is that conventional loans correlate more with your credit score than FHA or VA. It used to be that conventional type loans existed for those who had a substantial down payment. Now, there are many different types of insured conventional loans that can be used in special circumstances. There are "stated income" and "no doc" loans that need only partial or no verification of employment or income. This works well for self-employed applicants that have either not been in business for at least two years, or those who do not show enough documented income. These are higher risk loans and often carry a higher interest rate depending on your credit score. To find out about other types of conventional loans and how they may apply to you contact us or try our Mortgage Analysis Worksheet to see what loans you may qualify for.

DOWNPAYMENT ASSISTANCE

Go to the Assistance section of our website to find out about grants, bonds and loan programs that get you into your next home with little to no money out of pocket.