FHA Loans - Your Path to Homeownership

Federal Housing Administration (FHA) loans are designed to make homeownership accessible to more Americans. These government-backed loans offer flexible qualification requirements and are particularly popular with first-time homebuyers.

How FHA Loans Work

FHA loans are insured by the Federal Housing Administration, which allows lenders to offer more favorable terms to borrowers. You'll pay a mortgage insurance premium (MIP) that protects the lender if you default, but in return, you get access to lower down payments and more flexible credit requirements.

FHA Loan Benefits

• Low Down Payment: As little as 3.5% down with a credit score of 580 or higher

• Flexible Credit Requirements: Credit scores as low as 580 accepted (500-579 with 10% down)

• Gift Funds Allowed: Down payment and closing costs can come from family gifts

• Assumable Loans: Future buyers can take over your loan terms

• Competitive Rates: Often lower than conventional loan rates

FHA Loan Requirements

• Primary residence only (no investment properties)

• Debt-to-income ratio typically under 43%

• Property must meet FHA minimum property standards

• Mortgage insurance premium required

Conventional Loans - Traditional Flexibility

Conventional loans are traditional mortgages not insured by any government agency. They offer the most flexibility in terms and are ideal for borrowers with good credit and stable income.

How Conventional Loans Work

These loans follow guidelines set by Fannie Mae and Freddie Mac, government-sponsored enterprises that purchase mortgages from lenders. Without government insurance, lenders rely on your creditworthiness and may require private mortgage insurance (PMI) if you put down less than 20%.

Conventional Loan Benefits

• No Upfront Insurance Premium: Unlike FHA loans, no upfront mortgage insurance fee

• Removable PMI: Private mortgage insurance can be cancelled when you reach 20% equity

• Higher Loan Limits: Conforming loans up to $766,550 (2024 limit), jumbo loans above that

• Flexible Property Types: Primary homes, second homes, and investment properties

• Various Term Options: 15-year, 20-year, 30-year, and more

Conventional Loan Requirements

• Credit score typically 620 or higher

• Down payment as low as 3% for qualified borrowers

• Debt-to-income ratio typically under 45%

• Stable employment and income history

VA Loans - Honoring Your Service

VA loans are an exclusive benefit for eligible veterans, active-duty service members, National Guard, Reserves, and surviving spouses. These loans represent our nation's commitment to those who have served.

How VA Loans Work

The Department of Veterans Affairs guarantees a portion of the loan, which allows lenders to offer exceptional terms. You'll need a Certificate of Eligibility (COE) to prove your military service, and the property must be your primary residence.

VA Loan Benefits

• No Down Payment: 100% financing available for qualified borrowers

• No Private Mortgage Insurance: No monthly PMI payments required

• Competitive Interest Rates: Often lower than conventional loans

• No Prepayment Penalties: Pay off your loan early without fees

• Assumable Loans: Qualified buyers can take over your loan

• Reusable Benefit: Can be used multiple times throughout your lifetime

VA Loan Eligibility

• Veterans with qualifying service periods

• Active-duty service members

• National Guard and Reserve members with qualifying service

• Surviving spouses of veterans who died in service or from service-connected disabilities

• Must obtain Certificate of Eligibility (COE)

Reverse Mortgages - Financial Freedom in Retirement

A reverse mortgage is a loan available to homeowners aged 62 and older that allows them to access the equity in their home without having to make monthly mortgage payments. Instead of making payments to a lender, the lender makes payments to you.

How Reverse Mortgages Work

With a reverse mortgage, you continue to own your home and maintain the title. You can receive funds as a lump sum, monthly payments, a line of credit, or a combination of these options. The loan becomes due when you sell the home, move out permanently, or pass away.

Types of Reverse Mortgages

• HECM (Home Equity Conversion Mortgage): FHA-insured, most popular option

• Jumbo Reverse Mortgage: For high-value homes exceeding HECM limits

• HECM for Purchase: Buy a new home using a reverse mortgage

Reverse Mortgage Benefits

• No Monthly Payments: Eliminate monthly mortgage payments

• Stay in Your Home: Continue living in your home as long as you wish

• Flexible Access: Choose how you receive your funds

• Non-Recourse Loan: You'll never owe more than your home's value

• Government Insured: HECM loans are backed by FHA

Reverse Mortgage Requirements

• Be at least 62 years old

• Own your home outright or have a low mortgage balance

• Live in the home as your primary residence

• Maintain the property and pay property taxes and homeowners insurance

• Complete required financial assessment and HUD-approved counseling

Important Considerations

While reverse mortgages offer many benefits, it's important to understand all aspects:

• Interest accrues over time, reducing available equity

• You remain responsible for property taxes, insurance, and maintenance

• The loan must be repaid if you move or sell the home

• May affect eligibility for some government programs