Loan Types

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A purchase transaction includes buyers, sellers, and real estate agents representing each side.  The financed portion of the funds use to buy a home is called a purchase mortgage loan.

A Pre-Approval Letter is required before searching for homes to help guide you and the realtor on how much you can afford. 

A rate and term refinance is a type of loan that replaces your old mortgage with a new one for more favorable terms. 

This is a great option if you want to:

• Lower your monthly mortgage payment
• Pay off your mortgage faster
• Change from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage or vice versa

A cash out refinance is a type of mortgage loan that allows you to borrow more than you currently owe on your mortgage and take the difference out in cash.

This is great option if you need money for:

• home improvements
• debt consolidation
• other expenses

A home equity loan and a home equity line of credit (HELOC) are both types of loans that allow homeowners to borrow money against the equity in their homes. 

Equity is the difference between the market value of the home and the outstanding mortgage balance. 

Home Equity Loan: 

• One-time loan 
• Fixed amount of money
• Fixed interest rate
• Fixed repayment term
• Benefits: Finance major expenses - home improvements, education, or debt consolidation. 

Home equity line of credit (HELOC): 

• Revolving line of credit
• Variable interest rates
  • Interest rate on the loan can fluctuate over time.
• Benefits: Financing unexpected expenses - repairs, medical bills, or emergency travel.

The most popular loan product. A conventional loan is best for those with strong credit score and a bigger home buying budget.

General Requirements:

• Credit Score: 620 +
• Minimum Down Payment Requirement:
  • 3% (First-Time Homebuyers)
  • 5% (Primary home, not First-Time Homebuyer)
  • 20% +  (No PMI)
• Primary, Secondary, and Investment homes

The Federal Housing Administration (FHA) which is a part of the U.S. Department of Housing and Urban Development (HUD)

General Requirements:

• Credit Score: 580 +
• Minimum Down Payment Requirement:
  • 3% (First-Time Homebuyers)
  • 5% (Primary home, not First-Time Homebuyer)
  • 20% +  (No PMI)
• Primary, Secondary, and Investment homes

A VA mortgage, or VA home loan, is a program that helps veterans, service members, and their surviving spouses purchase homes.

General Requirements:

• Must be a Veteran and/or Veteran Spouse
• Credit Score: 580 +
• Minimum Down Payment Requirement:
  • 0%
• No Mortgage Insurance

A jumbo mortgage is a home loan that exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA).

General Requirements:

• Credit Score: 660 +
• Minimum Down Payment Requirement: 
  • 10.01%
  • 20% (Significantly better pricing!)
• Minimum loan amount (can vary by area)
  • $766,550
• Reserves will be required