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Conventional Loans

 

If you are looking for a mortgage with a wide selection of terms and competitive rates, conventional loans may be your answer. These loans are what most people think of when it comes to a traditional home loan. Conventional Home Loans are not part of a government-sponsored program, and are instead fully funded and insured by private lenders and insurers.

 

Basic Conventional Loan Requirements

 

Ultimately, lenders individually decide who is and is not approved for a conventional loan. Borrowers should be prepared to supply at least 30 days of most recent pay check stubs and two years of W-2’s, or 2 years tax returns if self employed, 2 months of bank statements and proof of cash reserves and submit to a credit report.

Clients should have good or better credit – at least a 620 or higher, and a lower debt to income ratio.

For most conventional loans, a 5% down payment is required and 20% down payment is required to avoid paying mortgage insurance. A 3% down payment is available for 1st time home buyers.

 

FHA Loans

 

FHA loans are an awesome option when it comes to home financing. They have great benefits, such as a minimum of only 3.5% down payment. These non-conventional loans are secured by the Federal Housing Administration and are funded by private lenders.

 

Basic FHA Loan Requirements

 

FHA loans are a much more accessible financing option with lessened requirements and added benefits such as:

  • 500+ Credit Score
  • 3.5% Down Payment with 580+ score
  • 10% down payment with 500 t0 579 score
  • Fixed interest rates
  • The ability to have some or all closing costs covered by the seller or the lender.

If you would like to make repairs to your existing home, FHA also offers 203(k) mortgages for home repair.

VA Loans

 

Despite the name, a VA Loan is not a loan made directly by the federal government or the Veteran’s Administration. It is a loan made by a qualified lender, guaranteed by the United States Department of Veterans Affairs (VA). The loan enables veterans and active duty personnel to purchase a home with favorable loan terms.

Basic VA Loan Requirements

 

If you’ve served then yes you are eligible. Great rates, great terms, and flexible qualifications make this the best choice.

  • 15 or 30 year fixed rate mortgage
  • Up to 100% financing may be possible
  • No or low down payment options
  • Low minimum credit scores down to 500

Additional savings with low-interest rates are another attractive feature. If you have a less than perfect credit score, VA loans offer flexibility to those who need it.

Non Prime Loans

 

Non prime loans are private and not back by any government program.

 

Basic Non Prime Loan Requirements

The credit guidelines are very flexible, but requires a large down payment of 20% to 35%. Loan amounts go up to 2.5 million and there is no mortgage insurance. Buying investment properties with this program is easier than with a conventional loan.

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Carl Holmes - Realtor - Greater Los Angeles County CA Area Homes for Sale and Real Estate Listings