The New House

Loan Types

Meeting Your Financing Goals

 
Family Portrait

VA Mortgage

A Brighter Future

If you’re looking to buy a house, it’s worth taking the time to find out if you’re eligible for a VA loan. VA loans typically come with lower interest rates than conventional mortgages.


They also tend to be more forgiving when it comes to things like your debt-to-income ratio and credit score. And if you don’t have a 20% down payment, a VA loan won’t require you to take out primary mortgage insurance.

Home Owners

Conventional Mortgage

The Right Loan for You

conventional mortgage is one that’s not guaranteed or insured by the federal government.


Most conventional mortgages are “conforming,” which simply means that they meet the requirements to be sold to Fannie Mae or Freddie Mac. Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages from lenders and sell them to investors. This frees up lenders’ funds so they can get more qualified buyers into homes.


Conventional mortgages can also be non-conforming, which means that they don’t meet Fannie Mae’s or Freddie Mac’s guidelines. One type of non-conforming conventional mortgage is a jumbo loan, which is a mortgage that exceeds conforming loan limits.


Because there are several different sets of guidelines that fall under the umbrella of “conventional loans,” there’s no single set of requirements for borrowers.  conventional loans have stricter credit requirements than government-backed loans like FHA loans. In most cases, you’ll need a credit score of at least 620 and a debt-to-income ratio of 50% or less.

New Home

FHA Loan

Great for First-time Borrowers

FHA loans are backed by the Federal Housing Administration, an agency under the jurisdiction of the Department of Housing and Urban Development. FHA loans are insured by the FHA, which simply means that organization protects your lender against loss if you default on your loan.


FHA loans are available with low down payment options and lower minimum credit score limits, but you’ll also have to pay mortgage insurance.


The option of a low down payment and more lenient credit requirements can make FHA loans particularly attractive for first-time home buyers, although you don’t have to be a first-time home buyer in order to qualify.

Rural Village

USDA Mortgage

A Zero Down Payment Option

You probably associate the United States Department of Agriculture, or USDA, with things like the food pyramid, food safety and plant inspections. But did you know the USDA is also involved in rural development?

USDA loans are mortgage loans that help make purchasing a home more affordable for those living in rural areas. The U.S. Department of Agriculture backs USDA loans in the same way the Department of Veterans Affairs backs VA loans for veterans and their families.


This government backing means compared to conventional loans, mortgage lenders can offer lower interest rates. If you qualify, you can buy a home with no down payment, although you’ll still need to pay closing costs.

Get in touch for more mortgage information and learn what type of loan is right for you.