The 7 Most Popular Loan Programs and Who They’re Perfect For
This loan program offers first time home buyers a chance to purchase with a down payment of only 3.5% of the purchase price. Since the minimum down payment for this loan program is only 3.5% this program carries mortgage insurance for the first 5 years. Interest rates tend to be lower for this program than for other conventional financing
If purchasing with 20% down or if you are refinancing with at least 20% equity in your home this loan program is perfect for when rates are low. You can also purchase with a down payment of as low as 10%. It is advised if you have 10% to choose this program over the FHA 30 year fixed because although rates might be slightly higher the monthly mortgage insurance premiums will be lower.
If you have the advantage of cutting your loan term in half and able to pay a relatively close payment to what you currently are paying on a 30 year fixed mortgage consider this loan. You not only cut the life of your loan by half you also cut the finance charge by well more than half. You can compare the savings using our loan calculator in the tools section.
If your loan amount is over $729,750 than you will be in a tier of interest rates slightly higher than conforming loan interest rates. Although you can match conforming 30 year fixed interest rates with Jumbo adjustable loan programs such as the 7 year fixed we advise the 30 Year Fixed option while rates are low.
This loan program is perfect for homes that are in need of repair and would not be eligible for traditional financing. No mortgage insurance and no appraisal are required! The minimum down payment for investment use is 15% with 660 FICO score. For a second home the minimum down payment is 10% and for buyers who plan to make it their home the down payment is only 3% minimum. The express program has less stringent underwriting requirements and can help borrowers with less than perfect credit qualify.
This loan program requires no income documentation but has a much higher down payment requirement with a minimum of 35%. This program also has a cost typically between 3% to 5% of the loan amount and a term of anywhere between 3 years to 5 years before they become due. Useful for short term financing only.
Similar to Home Path financing this loan program requires no appraisal and is intended for the financing of properties in need of repair. If purchasing a home with damage estimating $35,000 to repair this loan would cover the financing to purchase the home and then open an account with $35,000 to go towards remodeling.