The most common is the 30 year fixed conventional loan. A great program for borrowers with good to great credit. Underwriting guidelines are set by Fannie Mae and Freddie Mac. There are also 20 year, 15 year, as low as 8 year conventional loans.
With a home purchase you can
get a home with as little as 3% down. However, anytime you have a conventional loan with less than 20% down, you will have PMI (Private Mortgage Insurance).
A Jumbo loan is any loan that is over the conventional loan size for your County. Depending on the county, the conventional loan limit for single family homes come 2022 will be +/- $940,000. The limit is higher for high cost counties.
Jumbo loans typically have reduced debt to income ratios, higher asset requirements, higher credit score requirement, and larger down payments
Each individual lender that offers a Jumbo program will have their own specific underwriting guidelines.
VA mortgage loans are one of the best loan products on the market.
Veterans can do $0 down on a new home purchase up to $2M
Typically veterans have access to lower rates, especially on a 30 yr fixed loan.
The Jumbo VA loan sizes can go over the County limit with a down payment. In addition, many VA Mortgage Loans are assumable and have NO monthly PMI regardless of down payment.
The Federal Housing Administration (FHA) - insures the loan, so your lender can offer you a better deal. FHA allows a buyer to purchase a home with as little as 3.5% down. They tend to be more lenient on areas such as credit, funds to close and co-borrowers.
Some benefits of FHA loans are:
FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan.
FHA loan limits for 2021 range from $356,362 - $822,375, and vary by county.
In the past USDA Loans were often call "farmers loans" but times have changed. Almost anyone outside of a major metropolitan area looking to purchase a home can qualify for a USDA loan. Eligibility varies based on area, your income, credit history, and number of dependents claimed.
In Arizona, if a first-time home buyer qualifies they can get mortgage help courtesy of the Arizona Department of Housing - AZDOH. Arizona’s Home Plus loan program offers assistance with down payment and closing costs. In addition, borrowers can get discounts on mortgage insurance.
In California, the California Housing Finance Agency, or CalHFA, provides mortgage and assistance programs to help Californians buy their first home.
In Colorado, the CHFA programs can help first-time home buyers purchase a home.
Wain Capital, LLC, Arizona - 0951257 & 1825506 Zachary Wain, 207079, Wain Capital LLC, 1825506 Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, 1825506 Licensed by the Department of Business Oversight under the California Finance Lenders Law, 1825506 Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, 207079 or Licensed by the Department of Business Oversight under the California Finance Lenders Law, 207079 NMLS# 1825506 Wain Capital, LLC (480) 489-2703 NMLS# CO-100507291 Zachary Wain 480-489-2703
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