Mortgage Options

Federal Housing Administration (FHA)

FHA is a government agency in the USA, responsible for setting the standards in underwriting, construction and insurance loans made by banks or private home lenders. Requesting a government-insured mortgage from a lender makes the lender more incline to approve your loan.

FHA is responsible for securing home loan with insurance. This loan seems to be one of the easiest to qualify for, due to the fact of the low down payment, minimum credit requirement and it's government-insured. This type of loan make up a large majority of mortgages in the USA. PMI is added to the loan as insurance to the lender in the event a default occurs.

Pros of a FHA insured loan:

• Down payment 3.5% of the purchase price
• FHA Loan limits vary by location
• LTV up to 96.5% of a single family residence

Cons of a FHA insured loan:

Your monthly note will increase because PMI is added to all loan over 80% LTV.

Veterans Administration (VA)

Veterans Administration is a USA federal agency that provides a variety of services to veterans; One of them being a home mortgage guarantee services. The veteran goes to a lender who provides the home mortgage, VA guarantees the mortgage. The veteran must prove his eligibility through a DD-214

Pros of a VA guaranteed loan:

• Down payment o%, Usually, If the loan amount Is no more than four times the veterans eligibility.
• VA Loan limits vary by location
• LTV up to 100% of a single family residence

Local counties:

• Shelby county, Tennessee : $0 down payment up to $424,100
• Desoto county, Mississippi : $0 down payment up to $424,100

Cons of a VA guaranteed loan:

You must be a veteran to qualify to purchase a home using this program.

Conforming Conventional

Conforming conventional loan in the US, are mortgage loans that conform to Fannie Mae and Freddie Mac guidelines.

Pros of a conforming Conventional loan:

• Typical Down payment 10-20%
• Conventional Loan limits vary by location
• Average LTV up to 90% of a single family residence

Cons of a conforming Conventional loan:

• DU Qualifying requirements sometimes require more cash reserves than FHA and VA per Fannie Mae guidelines.
• Your monthly note will increase because PMI is added to all loan over 80% LTV.

We say yes, when others say no!