Purchase / Refinance Loans
Whether you’re buying a house or refinancing one, we have you covered with a wide array of loan products, paired with professionals who can explain the pros and cons of each.
Here are some highlights and things to know about purchase and refinance loans.
Conventional Loans are loans insured by either Fannie Mae or Freddie Mac. Conventional loan guidelines allow for up to 97% loan-to-value, meaning you can buy or refinance with as little as 3% down, depending on the loan type. For borrowers with strong credit, conventional loans often are a wise choice because the Private Mortgage Insurance (PMI) eventually drops off.
FHA Loans are insured by HUD and on a purchase, allow a loan-to-value of 96.5%. One major benefit of FHA loans is that the interest rate is normally lower than on conventional loans, and for borrowers with lower credit scores, the PMI can be more affordable. On most FHA loans, the PMI is permanent.
Jumbo Loans are loans that exceed the conventional loan amount of $484,350 (for 2019). On jumbo loans, there is more discretion on the part of the lender to determine guidelines, program parameters, and loan approval.
VA Loans allow up to 100% loan-to-value, or no money down, and offer very competitive rates. They are insured by the VA. For some veterans, there is a funding fee that is rolled into the loan. In most cases, if the borrower is an eligible veteran, the VA loan is the most compelling loan option because of the rates and the 0% down requirement.
USDA Loans are designed to encourage home ownership in certain rural areas, and offer 100% financing (0% down). The first step is finding out of the subject property is eligible for USDA financing. USDA loans also have household income limits, so not all borrowers are eligible. But for borrowers and properties that are eligible, USDA can be a very suitable option because of generally favorable interest rates and PMI costs.