With the small variety of home loan programs available today selecting the right home loan program is easier now more than ever. There are lots of different options available for both purchases and refinances. For this blog post we are going to be discussing purchase loan programs. With a decent credit score, documented job stability/income and even without down payment, purchasing a home today is really quite affordable.
There’s a few different available choices in the marketplace today for purchases. We have conventional loans, FHA loans, VA Loans, Home Path Loans, USDA Loans and even Jumbo Loans. Each one of these home loan programs have their own unique characteristics.
Here’s a small synopsis of each loan program to help you select which one makes the most sense for you.
Each of these programs contain the same terms example 30 year fixed etc.
Conventional Loans- these are your standard most basic loans and they contain terms of 15 year, 30 year and even 10 year choices all with fixed rates. This can be for purchases of up to 5% down.
FHA Loans-allow for first-time home buyers as well as move-up buyers and you are allowed to put as little as 3.5% down. The main benefit besides a low down payment is relaxed credit guidelines.
VA Loans- are for veterans only. This program offers 100% financing and there is no earnest money required. There is also no mortgage insurance required and there is a 2.15% funding fee financed into the loan amount. The seller of the property pays for all repairs to be done and the property must clear pest.
Home Path Loans- are for properties owned by Fannie Mae only. Fannie Mae allows the purchase contract to determine the purchase price and there is no appraisal required and there is no more is insurance required. The down payment options are 3% down and 5% down, but the rates are significantly better putting 5% down.
USDA Loans-presently have a 3.5% funding fee however this is being reduced to 2% comes October 1. This loan program also offers 100% financing in Sonoma County and is available in rural areas. There are certain income limitations which we can discuss by calling 707-217-4000. Learn the areas of Sonoma County to get a USDA Home Loan.
Jumbo Loans-are presently available any loan amounts above $662,500. On October 1 this will be reduced to $520,950, meaning that any loan amounts above that figure will be considered Jumbo Loans. Jumbo Loans in the fixed rate category for 30 years or 15 years contain much higher rates than short-term adjustable-rate mortgages.
Selecting the right home loan program is a predicated on what you qualify for.
Qualifying for a mortgage loan and subsequently selecting the right home loan program begins with talking to a qualified mortgage lender that can walk you through some available options. If you are thinking about purchasing a property in Sonoma County or in Santa Rosa, feel free to give me a telephone call Scott Sheldon and we can go over some available options and see which one makes the most sense. I look forward to helping you select the right home loan program.