Resources Types of Loans & Loan Programs • Conventional—A conventional mortgage can lead to a low fixed rate or adjustable rate for your primary home, secondary home, or investment property. These types of loans are more flexible and not guaranteed or insured by the government. Conventional loans are great for those with good to excellent credit. • FHA—An FHA mortgage is a great program for buyers. Its advantages are a low down payment without private mortgage insurance. The lender process can be streamlined, with no appraisal and reduced loan documentation to qualified applicants. FHA loans tend to be a little higher due to insurance. FHA loans are insured and backed by government agencies (Federal Housing Administration). • VA— Specific for Veterans and surviving spouse of a veteran. A VA Mortgage offers many benefits, including no down payment and lower interest rates. • USDA—These are only available in certain areas deemed “rural” by the United States Department of Agriculture. Surprisingly, many properties on the outskirts of a metro area will qualify for these loan programs. The advantages of a USDA Mortgage are lower interest rates and zero down payment.
Conventional Loans Conventional 97 FICO score 620 DTI (Debt To Income Ratio) 43%
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