Get Pre-Approved in Hours Not Days
MAIN MORTGAGE TYPES
Conventional
Conventional mortgages typically have a fixed rate of interest, which means that the interest rate does not change throughout the life of the loan. Conventional mortgages or loans are not guaranteed by the federal government and as a result, typically have stricter lending requirements by banks and creditors. Good FICO Scores and Low Debt to Income (DTI) are required for such loans. Mortgage Insurance can be eliminated if Borrower has 20% equity in the property. The limit for such loans is presently set at $548,250.00.
High Balance
This is the same as Conventional with a higher Loan limit amount. This type of loan is for borrowers who live in expensive US counties and is only valid if the property is located in those counties. The requirements are the same as Conventional but the interest rate is usually higher. Good FICO Scores and Low Debt to Income (DTI) are required for such loans. Mortgage Insurance can be eliminated if Borrower has 20% equity in the property. The limit for such loans is presently set at $822,375.00 in Santa Clara County.
Jumbo
A Jumbo loan unlike a conventional conforming loan is a non-conforming loan and it is usually for a loan amount greater than the High Balance conventional loan allows. These types of loans do not conform to the rules and regulations set forth by the two government agencies called Fannie Mae and Freddie Mac. These types of loans are mostly used by borrowers living in very expensive areas. Such loans usually have a higher interest rate than High Limit loans and require very good FICO Scores along with a high income and low (DTI).
FHA
FHA loans are federally-backed mortgages designed for low-to-moderate-income borrowers with lower than average credit scores. FHA loans require a lower minimum down payment and a lower credit score than many conventional loans. FHA loans are issued by FHA-approved banks and lending institutions; these institutions will evaluate your qualifications for the loan. In order to secure the guarantee of the FHA, borrowers for an FHA loan are also required to purchase mortgage insurance, and premium payments are made to FHA.
VA
The VA loan is a $0 down mortgage option available to Veterans, Service Members and select military spouses. VA loans are issued by private lenders, such as a mortgage company or bank, and guaranteed by the U.S. Department of Veterans Affairs (VA). The VA home loan was created to help service members purchase homes without needing a down payment or excellent credit. This historic program has guaranteed more than 25 million VA loans, helping Veterans, active duty military members and their families purchase or refinance a home.
USDA
USDA loans are mortgages backed the U.S. Department of Agriculture as part of its Rural Development Guaranteed Housing Loan program. USDA loans are available to home buyers with low-to-average income for their area. They offer financing with no down payment, reduced mortgage insurance, and below-market mortgage rates. USDA home loans are putting people in homes who never thought they could do anything but rent. USDA eligibility is based on the buyer and the property. The home must be in a qualified “rural” area.
Easy & Secure Online Mortgage Application
