Step 2

EXPLORE FINANCE OPTIONS

The internet is a great place to start but there is misinformation out there. Mortgage guidelines change so often, if you find something written a few years ago, it might not be true anymore. The best bet is to deal with a Loan Officer that can show you the options available and help you decide the best financing options for you. Here are the most common loan programs.

FHA: a loan program backed by the Department of Housing and Urban Development (HUD). This is a very popular program for first time buyers, but is by no means the only program out there. Credit scores may be as low as 580 with a 3.5% down payment.

VA: For those who have served our country, this is a 100% financing option assuming you have proper “entitlement”. Contact a Loan Officer today to discuss this further if you think you might be eligible.

USDA: This program is backed by the U.S. Department of Agriculture. It offers the potential for 100% financing for homes in rural areas. The borrower or borrowers’ income must be less than the Area Median Income and the property itself must be located within one of USDA’s targeted areas.

Conventional: By definition, this is a loan that meets guidelines set by either Fannie Mae or Freddie Mac. Credit score requirements are a 620 or higher middle score. Minimum down payment requirements can be as low as 3% (for First Time Home Buyers and those who meet the criteria for the Home Ready or Home Possible programs) and are typically 5% for everyone else.