Types of Financing

Traditional & Institutional Mortgage Loans

VA- guaranteed by the Department of Veteran’s Affairs this type of loan is available for eligible veterans and/or their unmarried surviving spouse. Qualified buyers can buy a home with no money down. Basically 100% financing.

FHA (Federal Housing Administration)- these are government insured loans managed by the Department of Housing and Urban Development (HUD) which is a department of the federal government. Anyone may apply for this type of loan; the minimum down payment is 3.5%. You are required to pay mortgage insurance for this type of loan which is added to your monthly payment.

FHA 203k – this is a government insured loan specifically designed for home buyers that purchase a home that is in need of repair or updating. It’s a two-part process; the buyer will purchase the home in its current condition and then the repairs will be completed after the closing. Current home owners may also use this type of loan to repair or upgrade their home whether it’s for their personal enjoyment or if they are planning on selling. The minimum amount borrowed in a regular 203k loan is $5,000; the maximum amount depends on regular vs streamlined and purchase vs refinance loan.


Conventional-this type of loan is not government specific and is viewed as the strongest type of mortgage when seeking financing for a home. It is preferred by sellers and has an advantage over other types of loans since the requirements are not as scrutinized as government insured loans. Conventional loans are usually geared toward homebuyers with above average credit scores. A higher down payment is usually required; although some lenders will accept as low as 3% down.

Conventional loans usually close faster than other types of loans because they are not required to undergo the extra layer of scrutiny by requiring government approval. Depending on your down payment you may avoid paying mortgage insurance. In addition you may also be eligible for a lower interest rate if you have a high credit score, and sizable income.

USDA- this is a no money down loan program backed by the United States Department of Agriculture. The program works with approved lenders to help low and moderate income people the opportunity to own a home. To qualify you must be willing to live in eligible rural and suburban neighborhoods.

For more info visit https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program

Typical items required to process your loan application

  • Driver’s License
  • Last 30 days of pay stubs
  • Last 2 months bank statements
  • Last 2 years of W2’s
  • Last 2 years of Tax Returns

If you would like to work with one of my preferred lenders please let me know. They can also answer any loan related questions you may have.


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