The Different Mortgage Types

There are several different types of mortgage loans for which one can apply. Four of the loan types are far more common than others: FHA, VA, Conventional, and USDA. ...

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The Different Mortgage Types

Posted by Danny Force on Monday, July 18th, 2016 at 12:06am.

There are several different types of mortgage loans for which one can apply. Four of the loan types are far more common than others: FHA, VA, Conventional, and USDA. There's also a Jumbo loan if you're financing more than $424,100.

While all mortgage lenders may be different, the different kinds of mortgages they offer are virtually all the same. You’ll find more about this in my Home Buyers Handbook.

FHA:

-       Down payment of 3.5%
-       580 credit score required (varies by lender)
-       Mortgage Insurance required 
-       Loan limit changes per year and varies by county 

VA: (Active service members, veterans, eligible surviving spouses, and some reservists)

-       No down payment required
-       600 credit score required (varies by lender)
-       No Mortgage Insurance
-       Loan limit up to $417K (for 0% down)

More on the VA Loan HERE

Conventional:

-       Down payment of 5% required (3% for First Time Buyers)
-       620 credit score required (varies by lender) 
-       Mortgage insurance required if not putting 20% down 
-       Loan limit up to $424,100 

USDA:

-       0% down
-       Minimum Credit Score of 640
-       No Mortgage Insurance
-       Subject to income cap and property location 

There’s also Home Renovation Loan, CRA (First Time Home Buyer), and Professional loans. Not all lenders offer these, and not all buyers qualify for them. If you fall into one of these categories, I’ll make sure you’re connected with the right person. See why it's important to be Approved before Home shopping!

So if you're in the market to buy a home, Contact Me Today! I can help you get set up with mortgage and insurance people to make sure you're able to buy a home and have the best coverage.


Subscribe to my YouTube channel for the Home Buying Process!


You can also get a copy of my Home Buyers Handbook when buying to learn about the process!


Danny Force, Realtor
DFW Legacy Real Estate Group
613 N. Walnut St.
Roanoke, TX 76262
C: 817-903-5442
danny@dannyforce.com

4 Responses to "The Different Mortgage Types"

The Difference in Interest Rates and What It Means To You wrote: [...]by a few different things: credit score, down payment amount, number of years in the loan, and loan program. Things which could get you a better interest rate include: a high credit score, significant down[...]

Posted on Monday, October 24th, 2016 at 2:01am.

Please Be Honest With the Mortgage Lender wrote: [...]by the same mortgage regulations, but not all lenders offer the same loan products. There's the usual few programs everyone has, but there are several lenders who offer specialized products (like the First Time Home Buyer[...]

Posted on Sunday, December 4th, 2016 at 11:38pm.

Mortgage Program for First Time Home Buyers wrote: [...]be able to look at your application and help guide you on how to get approved for it, or there are several other traditional loan programs available as well.
I take great pride in helping first time buyers achieve the dream of buying[...]

Posted on Friday, December 30th, 2016 at 1:17pm.

'No' doesn't always mean no with mortgages. wrote: [...]equal, nor are all financial institutions able to do all the same programs. We all know about the major types of loans, such as FHA, conventional, VA, and even the occasional USDA. There's also down payment assistance[...]

Posted on Monday, April 9th, 2018 at 8:45am.

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