Mortgage Options for Different Goals and Borrowers

Conventional Loans

Conventional loans are among the most common mortgage options for purchase and refinance transactions. They are not backed by a government agency, and program guidelines are set by the loan program and private mortgage investors.

Down payment requirements vary depending on the specific conventional loan program and borrower qualifications. Private mortgage insurance (PMI) may be required when the down payment or equity position is below a certain threshold. Credit, income, asset, and property requirements apply.

• Available for primary residences, second homes, and investment properties in many cases
• Fixed-rate and adjustable-rate options may be available depending on the program
• Down payment requirements vary by program and borrower qualifications
• Private mortgage insurance (PMI) may be required depending on loan-to-value ratio
• Conforming loan limits established by the Federal Housing Finance Agency (FHFA) apply to standard programs
• Credit, income, asset, employment, and property requirements apply

Program availability and eligibility are subject to current lender, agency, borrower, and property requirements. Contact Sarah to discuss your specific situation.

FHA Loans

Federal Housing Administration (FHA) loans are government-insured mortgages. FHA mortgage guidelines may offer flexibility compared to some conventional programs in certain areas.

FHA loans require mortgage insurance premiums — both an upfront premium and an annual premium — in most cases. Property condition standards, loan limits, and underwriting guidelines established by the FHA and the lender apply.

• Insured by the Federal Housing Administration (FHA), a U.S. government agency
• May offer more flexible qualification guidelines in some areas compared to certain conventional programs
• Upfront mortgage insurance premium (MIP) required at closing
• Annual mortgage insurance premium (MIP) required throughout the life of the loan in most cases
• Must be used for primary residence purchases
• Property must meet FHA minimum property standards
• Loan limits vary by county and are set and updated annually by the FHA

Program availability and eligibility are subject to current lender, agency, borrower, and property requirements. Contact Sarah to discuss your specific situation.

VA Loans

VA loans are a mortgage benefit available to eligible veterans, active-duty service members, and qualifying surviving spouses through the U.S. Department of Veterans Affairs. This benefit is earned through qualifying military service.

VA loans do not require a down payment for eligible borrowers who qualify within applicable limits, and do not require private mortgage insurance. A VA funding fee applies in most cases. Certain borrowers may be exempt from the funding fee based on disability status. VA and lender underwriting, credit, income, and property requirements must be satisfied.

• Available to eligible veterans, active-duty service members, and qualifying surviving spouses
• Certificate of Eligibility (COE) required from the U.S. Department of Veterans Affairs
• No down payment required for eligible borrowers who qualify within applicable limits
• No private mortgage insurance requirement
• VA funding fee required in most cases; exemptions may apply for eligible disabled veterans
• Used for primary residence purchases and certain refinances
• VA and lender underwriting, credit, income, and property standards apply

VA loan eligibility requires verification through the U.S. Department of Veterans Affairs. Loan approval is subject to VA and lender requirements.

USDA Rural Development Loans

USDA loans are mortgage programs offered through the U.S. Department of Agriculture for properties located in qualifying rural and suburban areas. Both property location and borrower income are subject to eligibility requirements.

No down payment is required for eligible borrowers and properties. A guarantee fee and annual fee apply. Geographic restrictions, income limits based on household size and location, and property requirements must be met.

• Property must be located in a USDA-eligible rural or suburban geographic area
• Borrower household income is subject to program limits based on location and household size
• No down payment required for qualifying borrowers
• Upfront guarantee fee and annual fee apply
• Primary residence requirement
• Credit and underwriting requirements apply

Program availability and eligibility are subject to current lender, agency, borrower, and property requirements. Contact Sarah to discuss your specific situation.

Jumbo Loans

Jumbo loans are mortgage loans for amounts that exceed the conforming loan limits established by the Federal Housing Finance Agency (FHFA). Because they fall outside standard conforming guidelines, they involve additional qualification requirements.

• For loan amounts above the conforming loan limits established by the FHFA
• Typically involves stricter credit, income, and financial reserve requirements
• Down payment requirements are commonly higher than for conforming loans
• Loan terms and program availability vary by lender
• Property appraisal and underwriting requirements apply

Program availability and eligibility are subject to current lender, agency, borrower, and property requirements. Contact Sarah to discuss your specific situation.

Investment Property Financing

Financing options may be available for borrowers purchasing residential investment properties intended for rental or investment purposes. Investment property financing involves requirements that typically differ from primary residence loans.

• Down payment requirements are typically higher than for primary residence financing
• Financial reserve requirements are often more substantial
• Rental income may be considered in qualifying depending on the program and documentation
• Credit, underwriting, and property eligibility requirements apply
• Program availability and terms vary

Investment property financing involves different qualification standards. Program availability, terms, and eligibility are subject to current lender guidelines.

Refinancing Options

Refinancing replaces your existing mortgage with a new loan. Common refinancing objectives include adjusting loan terms, exploring rate-and-term changes, accessing available equity through a cash-out refinance, or removing mortgage insurance when eligible. Whether refinancing makes sense depends on your specific situation.

Refinancing may increase the total finance charges paid over the life of the loan and is not appropriate for every borrower or situation.

Program availability and eligibility are subject to current lender, agency, borrower, and property requirements. Contact Sarah to discuss your specific situation.

First-Time Homebuyer Options

First-time homebuyers may have access to specific programs designed to assist with down payment requirements or provide more flexible qualification guidelines. Understanding the process before beginning is an important first step.

Sarah provides dedicated guidance for first-time buyers navigating the application, documentation, and closing process for the first time.

Program availability and eligibility are subject to current lender, agency, borrower, and property requirements. Contact Sarah to discuss your specific situation.