Home Loan

FHA, Conventional and VA Approved

FHA Loan:

The FHA, or Federal Housing Administration, provides Home Loan Mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States

FHA insured loans require mortgage insurance to protect lenders against losses that result from defaults on home mortgages.

FHA lending limits vary based on a variety of housing types and the state and county in which the property is located.

Basic FHA loan requirements:

Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
Minimum credit score of 620 or higher
Bankruptcy's must be at least two years old
Foreclosure's must be at least three years old
Your new mortgage payment should be no more than 30% of your gross income. (before taxes)   

FHA Loan Down Payment: As low as 3.5%

Conventional Loan:

A mortgage conventional loan is a lender agreement that's not guaranteed or insured by the federal government

Although a conventional loan is not insured or guaranteed by the government, it can still follow the guidelines of government sponsored enterprises such as Fannie Mae or Freddie Mac as both Fannie Mae and Freddie Mac are stockholder-owned corporations and are not part of the federal government.

Conventional loans may be either "conforming" and "non-conforming". Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Nonconforming loans don't meet Fannie Mae or Freddie Mac guidelines, but they are also considered conventional.

Conventional loan requirements:

Your monthly housing costs (mortgage principal and interest, property taxes and insurance) must not be more than 28% ratio of your gross monthly income

Minimum credit score of 620 or higher

You must also have enough income to pay your housing costs plus all additional monthly debt; must not be more than 36% ratio.
(These percentages may be exceeded with compensating factors.)

Conventional Loan Down Payment: As low as 10%

VA Approved:

You get your loan from a lender and VA “stands behind” the loan with that lender. If something goes wrong and you can’t make the payments, the VA covers any losses they might incur. The VA loan guaranty is this “insurance” that VA provide the lender.

Who is Eligible:
Veterans
Active duty personnel
Certain reservists and National Guard members
Surviving spouses of persons who die on active duty or die as a result of service-connected disabilities
Certain spouses of active duty personnel who are (a) missing in action, (b) captured in line of duty by a hostile force, or (c) forcibly detained by a foreign government or power

VA Loan Down Payment: As low as 0%