FHA Loans are a great option when you have less than 20% down payment and a low FICO (Credit Score).
An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by a FHA-approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money.

• This is the preferred home program for first-time home buyers with a low credit score.
• Are backed by the Federal Housing Administration, which allow down payments as low as 3.5%.
• The Federal Housing Administration (FHA) allows down payments as low as 3.5% for those with minimum credit score of 580 or higher.
• The Federal Housing Administration (FHA) allows down payments as low as 10% for those with minimum credit score of 580 or less.
• The FHA will insure loans for borrowers with scores as low as 500, but requires a 10% down payment for a score that is that low.
• Mortgage Insurance is required for the life of an FHA Loan and can’t be cancelled.
• DTI (debt-to-income) ratio 45% (can be as high as 50%)

Conventional Loans are a great option when you have 20% or more down payment and a higher FICO (Credit Score).

• This is the preferred home program for first-time home buyers with a high credit score of 680 or higher.
• Aren’t backed by the government, offer down payments as low as 3% to first-time home buyers with good credit.
• Available in fixed-rates, adjustable rates (ARM’s) with loan terms 10 to 30 years.
• Can be used to buy a primary residence, second home or rental property
• Mortgage Insurance is cancelable when home equity reaches 20% (unlike FHA which lasts the life of the loan, in most cases)
• DTI (debt-to-income) maximum ratio 43%

A jumbo loan is one way to buy a high-priced or luxury home. If you have a lower debt-to-income ratio, a higher credit score, and a larger down payment, a jumbo loan may be right for you. The limit on conforming loans is $417,000 in most areas of the country, but jumbo mortgages can exceed these limits.

A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.^[1] The loan may be offered at the lender’s standard variable rate/base rate. There may be a direct and legally defined link to the underlying index, but where the lender offers no specific link to the underlying market or index the rate can be changed at the lender’s discretion.

A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). The loan may be issued by qualified lenders. The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry). If you qualify for a VA loan, you can purchase a home with no down payment and no mortgage insurance requirements.

A reverse mortgage or home equity conversion mortgage (HECM) is a special type of home loan for older homeowners (62 years or older) that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner’s insurance. Reverse mortgages allow elders to access the home equity they have built up in their homes now, and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower (or the borrower’s estate) is generally not required to repay any additional loan balance in excess of the value of the home.