Loan Options

Please contact a mortgage lender for more specifics about each of these loan programs.  All loan programs are subject to buyer qualification.  This is merely an informative outline of the most popular loan types available:


FHA Loan

  • Lender agreement that is insured by the Federal Housing Administration (FHA)

  • 30, 20, 15 and 10-year terms are usually available with fixed rates

  • Buy a home with as little as 3.5% down (primary residence)

  • Your actual payment will vary based on your situation and the current interest rates when you apply

  • Low closing costs, which are regulated by HUD

  • Down payment can be a gift or may be obtained by a down payment assistance program, if the buyer qualifies for such a program. 

  • Mortgage Insurance is paid at closing and also rolled into monthly fees.  The private mortgage insurance, or PMI, can be waived after 5 years and once you have 78% loan to value ratio.

  • PMI will be waived altogether with a down payment of 20% or more.


Conventional Loan

  • Minimum 5% down 

  • Not insured by the federal government 

  • Lower Mortgage Insurance Premium (or NO premium, depending on your downpayment) 

  • Down payment cannot be a gift – must be of own funds 

  • Lower interest rates (than those of FHA loans)


VA Loan

  • Guaranteed by the Veterans Association

  • Borrower must have a certificate of Eligibility from the VA

  • No down payment

  • No private MIP

  • Limit on origination fees and closing costs that a lender can charge 

  • Borrowers are required to make a one-time funding fee based on loan amount and applicant’s service length.

  • Closing Costs can be paid by the lender and the seller 


USDA (Rural) Loan

  • Government Guaranteed Loan 

  • Property must be located in a USDA eligible area

  • No down payment

  • Low MIP

  • 3.5% funding fee rolled into the loan amount

  • Must meet income & credit requirements (typically used for lower income buyers)

  • Low interest rate 30 year loan and fixed rate