We are now able to accommodate customers that may have previously been unable to qualify for a mortgage due to their credit score. We have expanded our government loan offerings and are now considering borrowers with FICO scores as low as 520! To be eligibility the loan must be for a primary residence, 1-unit single family only, 31/43 maximum debt-to-income ratios, two months reserves and the borrower(s) may not own any other property at the time of closing. Other requirements and restrictions may apply.
FHA Loans
An FHA loan is a mortgage insured by the Federal Housing Administration (“FHA”), a government agency within the U.S. Department of Housing and Urban Development. These loans are a safe, viable option for building credit in today’s tough real estate market. Your down-payment can be as low as 3.5% of the purchase price, and in many cases your closing costs and fees can be included in the loan. The FHA allows home sellers, builders and lenders to pay some of the borrower’s closing costs, which include appraisal, credit reports and/or title expenses.
Two Mortgage Insurance Premiums are required on all FHA loans. The first is the upfront premium and the second is the annual premium. Contact your mortgage professional to learn more about these premiums and the current annual premiums for your loan amount.
FHA also offers a special loan product designed to finance home repairs and improvements called a 203K.
VA Loans
VA loans offer tremendous mortgage benefits to active-duty service members, veterans, and some surviving spouses. A VA home loan can be used for a number of purposes, including purchasing or building a new home, refinancing a current mortgage, repairing or improving your existing home, or installing home efficiency measures.
Benefits & Eligibility
- No down-payment options available
- No monthly mortgage insurance premium
- Limits on buyer’s closing costs
- Assumable mortgages are subject to VA approval of the assumer’s credit
- Penalty-free prepayment
- Should you experience temporary financial difficulties, the VA extends forbearance and financial counseling to help you avoid losing your home
- Other requirements and restrictions may apply
USDA Loans
The Department of Agriculture provides low-interest, no-down-payment loans to farmers and other qualified borrowers with low to moderate incomes buying property in rural areas or small towns who are unable to obtain loans elsewhere.
Benefits & Eligibility
- No down payment
- No cash reserve requirement
- No first time homebuyer requirement
- Fully amortizing 30-year fixed rate loan
- No seller contribution limit
- Loan amount can include closing costs and repairs, up to appraised value
- New and existing homes are eligible