Loan Products for Purchases
What is a Conventional Loan?
A Conventional (or conforming) loan is a loan that is not formally backed or insured by any government entity such as FHA, VA, and USDA. It’s a loan that follows guidelines set by Fannie Mae and Freddie Mac whom both are two agencies that help in standardizing mortgage lending in the U.S.
This program is especially good for First-time Homebuyers with decent credit and some amount of down payment.
USDA Guaranteed Rural Housing
What is a USDA Loan?
USDA loans are issued by qualified lenders and guaranteed by the U.S. Department of Agriculture (USDA). The USDA loan is a $0 down mortgage option available to rural and suburban homebuyers in the U.S.
This program’s purpose is to provide low-to-moderate income households the opportunity to achieve the dream of homeownership in eligible rural areas, and does so by guaranteeing each USDA loan against default. This guarantee allows for amazing benefits, such as zero down payment, low rates, and lenient credit requirements.
USDA has its own guidelines and requirements including eligibility requirements for both the homeowner and property. It is only available to homeowners wishing to purchase a single-family home that will be their primary residence.
What is a VA Loan?
Like FHA loans, the U.S. Department of Veterans Affairs (VA) does not lend money; it ensures qualified lenders. So if a borrower defaults on their home loan, then the lender is protected by the VA.
VA loans are exclusive to current and former service members. This program offers a lot of benefits, like zero down payment and no monthly mortgage insurance. Veterans don’t have to be First-time Homebuyers and may reuse their home loan benefit.
What is an FHA Loan?
An FHA loan is insured by the Federal Housing Administration. FHA does not lend money, it backs qualified lenders in case of mortgage default.
This program offers flexible lending standards to benefit borrowers with low credit scores, people whose house payments will be a big-chunk of their take-home pay, homebuyers with small down payments, and refinancers with little equity.
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