Todd Barnett

Conventional Loans

A conventional loan, or "traditional" loan, is a conforming mortgage that follows the guidelines put in place by Freddie Mac and Fannie Mae.
 

• Multiple Terms Available: 15, 20, 25, & 30 Years
• No mortgage insurance with down payments greater than 20 percent loan-to-value
• This is a universal product, so it's easy to shop around and compare
• This loan generally offers lower rates if you meet the loan requirements

620 min FICO
Down Payment Options:
- 3% First Time Home Buyer
- 5% Primary Residence
- 20% Investment Property
- 10% 2nd Home
Max Loan Amount $766,550

Low Down Payment

A conventional 97% LTV (loan-to-value) loan is similar to the traditional conventional loan; however, this specific program allows prospective home buyers to purchase a home with only a 3% down payment. To qualify, the following guidelines must be met:
 

• Loan amount may not exceed $766,550
• Must be a one-unit, single family dwelling
• Must be the owner's primary residence
• At least one borrower has not owned a home in the last three (3) years
• Must be a fixed rate mortgage
• Minimum FICO score of 620

*Other restrictions may apply.

A conventional 97% LTV (Loan-to-Value) loan is an attractive option to first-time home buyers as the qualifying guidelines typically meet their home buying profile. Another benefit of this loan program is that it allows for its entire 3% down payment to come from gifted funds; however, the gift must come from a person related to the borrower by blood or marriage, or the borrower's legal guardian, domestic partner or fiance/ fiancee.

FHA Loans

A great government-backed loan for first-time homebuyers or those with higher debt-to-income ratios. FHA loans have flexible qualifications and only require a small down payment.
 

• Seller Contributions: Up to 6% of sales price (toward closing costs prepaids)
• Gift funds allowed
• No first-time homebuyer requirements
• Purchase and rehab financing available
• Lower minimum down payment requirements

580 Min FICO
Max loan amount $498,257 (can vary per county)
FHA Mortgage Loan Limits website: https://entp.hud.gov/idapp/html/hicostlook.cfm
Minimum Required Investment (MRI) of at least 3.5 percent of the Adjusted Value.
1.75% UFMIP (Up Front Mortgage Insurance Premium)
.85% MIP (Monthly Insurance Premium)

VA Loans

A VA loan is a mortgage option, guaranteed by the Department of Veterans Affairs, for Veterans who meet the VA's guidelines for military service. VA loans offer low upfront costs for Service Members, Veterans, and eligible surviving spouses.
 

• No down payment required (unless the purchase price exceeds the reasonable value of the property)
• No monthly mortgage insurance (PMI)
• Gift funds allowed
• No cash reserve requirements
• Seller pays for any required repairs & can pay for closing costs
• No pre-payment penalty

*To determine your eligibility to participate in this program, just provide your Certificate of Eligibility (COE) or your Discharge/Separation form (DD214). If you do not have your COE, you can request one using form 26-1880.

580 Min FICO
VA Funding Fee - The veteran pays a funding fee to help defray costs of the VA Home Loan program.
VA Funding Fee Table: https://www.benefits.va.gov/homeloans/documents/docs/funding_fee_table.pdf
VA Funding Fee may be rolled into the loan amount

USDA Loans

USDA Loans are available to millions of eligible primary home buyers with low to moderate incomes. For homes located in an approved rural area as defined by the USDA. USDA Income and Property Eligibility Site: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
 

• 100% financing
• No down payment required
• Possibility of financing your closing costs
• 600 Min FICO
• Max Loan Amount $726,200
• Seller Contribution 6% of Sales Price

This mortgage option was developed to promote the purchase of homes in rural areas with low mortgage insurance. USDA Loans are backed through the Rural Housing Division of the U.S. Dept. of Agriculture.