Loan Types

There is a plethora of loan options that can help you finance your dream home with the perfect terms to fit your specific circumstances. Let's go over the most popular that we offer.

Conventional loans

A conventional loan is a type of mortgage that is not backed by a government program (like FHA or VA loans). Instead, it’s offered by private lenders, such as banks or credit unions. Conventional loans are a popular choice for homebuyers who have a solid credit history and can make a down payment of at least 3% to 20%.

Key points about a conventional loan:

• Flexible Options: Can be used for primary homes, vacation homes, or investment properties.
• Credit Score Requirements: Typically requires a higher credit score compared to government-backed loans.
• Down Payment: Down payment options vary but may require at least 3% to 20%.
• No Mortgage Insurance with 20% Down: If you can put down 20% or more, you won’t have to pay for private mortgage insurance (PMI).

FHA Loans

FHA loan is a type of mortgage insured by the Federal Housing Administration (FHA), designed to make homeownership more accessible, especially for first-time buyers or those with lower credit scores.

Here’s how it works:

• Lower Down Payment: You can qualify with a down payment as low as 3.5%.
• Flexible Credit Requirements: FHA loans are more forgiving of lower credit scores compared to conventional loans.
• Mortgage Insurance: You'll need to pay for mortgage insurance, which protects the lender in case you can’t repay the loan. This includes both an upfront premium and a monthly fee.
• Loan Limits: FHA loans have limits based on your area to ensure they’re used for modest homes.

VA Loans

A VA loan is a mortgage benefit available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. Backed by the U.S. Department of Veterans Affairs (VA), this type of loan offers significant advantages to make homeownership more affordable.

Here’s what makes VA loans unique:

• No Down Payment Required: VA loans allow you to purchase a home without a down payment in most cases.
• No Private Mortgage Insurance (PMI): Unlike many other loan types, VA loans don’t require PMI, even with no down payment.
• Competitive Interest Rates: VA loans often offer lower interest rates compared to conventional loans.
• Flexible Credit Requirements: They are more forgiving of lower credit scores compared to conventional loans.
• Funding Fee: While there’s no PMI, a one-time funding fee is required, but it can often be rolled into the loan amount.

usda loans

A USDA loan is a mortgage option backed by the U.S. Department of Agriculture, designed to help individuals and families buy homes in eligible rural and suburban areas. It offers affordable financing with attractive terms, making homeownership accessible to more people.

Key benefits of a USDA loan:

• No Down Payment: You can purchase a home with 100% financing, which means no upfront down payment is needed.
• Low Interest Rates: USDA loans often have lower interest rates compared to other types of loans.
• Flexible Credit Requirements: They are more forgiving for borrowers with less-than-perfect credit.
• Affordable Mortgage Insurance: USDA loans require mortgage insurance, but the cost is typically lower than with other loan types.
• Eligibility: The home must be in an eligible area, and there are income limits based on your household size and location.

Non-QM Loans

Non-QM loans are designed for borrowers who don’t meet the standard criteria for Qualified Mortgages (QM) as defined by the Consumer Financial Protection Bureau (CFPB). These loans provide flexibility, making them a great fit for individuals with unconventional income sources or unique financial situations. However, this flexibility often comes with higher interest rates due to increased risk. Unlike traditional loans that focus on income, Non-QM loans prioritize assets, cash flow, or property value.

Common Non-QM Loan Options:

• Bank Statement Loans: Ideal for self-employed borrowers; qualification is based on bank statements instead of tax returns.
• Asset Depletion Loans: Liquid assets are evaluated as a repayment source rather than income.
• Interest-Only Loans: Suitable for short-term needs before selling, refinancing, or moving.
• DSCR (Debt Service Coverage Ratio) Loans: Designed for real estate investors; qualification is based on projected rental income.
• Foreign National Loans: For non-resident investors seeking to purchase U.S. property.
• No-Income Verification Loans: Rely on assets, credit, and property value instead of income.
• ITIN Loans (Individual Taxpayer Identification Number Loans): Available for non-citizen workers without U.S. residency.