VA, USDA, FHA…Oh my!
VA, USDA, FHA ... Oh My!
- FHA Loan: Federal Housing Administration (FHA) loans are a type of government loan that typically allows for a lower down payment and credit score. FHA loans offer down payment options as low as 3.5%. They can be fixed rate or adjustable rate, but also require upfront and annual mortgage insurance premiums.
- VA Loan: Veterans Administration (VA) offers loans for eligible U.S. veterans, reservists, active-duty military personnel, National Guard and surviving spouses of veterans. VA loans make it easier for veterans to get financing because there is no minimum credit score and no down payment required.
- USDA Loan: The United States Department of Agriculture (USDA) provides special financing opportunities to borrowers who live in rural areas as defined by the USDA.
- Jumbo Loan: If a homebuyer wants to borrow more money than a conventional or government loan allows, then they will want a Jumbo loan. These loans are conventional, non-government loans that exceed limits established by Fannie Mae and Freddie Mac. Jumbo loans are great for purchasing high-priced or luxury homes.
- Renovation Loan: A home improvement loan or Renovation mortgage combines the purchase contract of a home with a renovation budget. This allows you to have a single mortgage payment that takes into account the cost of the home along with the improvements needed to turn an as-is home into your dream home.
- Reverse Mortgage: These loans are available to individuals over 62 years of age or older with considerable equity in their home. A homebuyer can borrow against the value of their home and receive these funds as a lump sum, fixed monthly payments, or a line of credit. While reverse mortgages require no monthly mortgage payments, borrowers are still responsible for property taxes and homeowner’s insurance.