Specialty Mortgage Loan Types

Dear Ali, 

Are you getting ready to dive into your first home purchase? There are many conventional loan options available to homebuyers, but a few specialty mortgages exist as well. 

FHA Loans 

FHA Loans are guaranteed by the Federal Housing Administration.  FHA loans offer more relaxed qualifying restrictions such as a lower credit score, smaller reserve funds, and a higher debt-to-income ratio. With a minimum 3.5% down payment for borrowers with a credit score of 580 or higher, these loans are popular among first-time home buyers who have little savings or have credit challenges. 

VA Loans

The VA loan is a government loan available to veterans who have served in the U.S. Armed Services and, in certain cases, to spouses of deceased veterans. They don’t require a down payment and are guaranteed by the Department of Veteran Affairs. They do, however, have to pay an upfront funding fee to help offset what the loans cost U.S. taxpayers. The fee can be as much as 3.6% of the loan amount.

I am here to answer any questions that you might have during the entire loan process, and beyond!

Best regards, 

Anna Smith