Seamless Home Financing: Kim Haddock's Residential Mortgage Expertise

A conventional mortgage refers to a mortgage that follows the guidelines set by Fannie Mae and Freddie Mac. It is not guaranteed or insured by the federal government. Conventional mortgages are used for primary residences (your home), second homes, and residential investment properties (1-4 units). Conventional loans are available for as little as a 3% down payment for a primary home. Second homes require a minimum 10% down payment, and investment homes require a minimum of 15% down. Any down payment of less than 20% will require mortgage insurance. Conventional mortgage loans are subject to maximum loan limits based on the county where the property is located.

An FHA mortgage is insured by the Federal Housing Administration. It is the most lenient of all mortgage programs. The minimum down payment for an FHA mortgage is 3.5% for borrowers whose credit score is above 580. FHA does make loans available to borrowers with scores below 580 who otherwise qualify for the loan; however, the minimum down payment for these loans is 10%. FHA loans require up-front mortgage insurance based on the loan amount. Up-front mortgage insurance can be financed with the loan. Additionally, FHA requires monthly mortgage insurance, which is included with the loan payment. FHA sets a maximum loan limit for this program. FHA mortgages are only available to finance a borrower's primary residence.

VA loans are guaranteed by the Department of Veterans Affairs. These loans are available to active military, qualifying military veterans, and the qualifying surviving spouse of a military veteran. VA loans provide 100% financing! VA loans have an up-front funding fee, but this can be financed into the loan amount. VA mortgages are the most generous of all mortgage programs. VA mortgages are only available to finance a borrower's primary residence. As a Certified Veterans Loan Specialist, I can help you obtain your Certificate of Eligibility and pre-qualify you for your purchase.

USDA loans are guaranteed through the United States Department of Agriculture as part of their Rural Development program. This program provides 100% financing for properties located in the USDA-eligible area. Borrowers are subject to household income limits, and the debt-to-income ratio tolerance is lower than that of other government loans. The up-front guarantee fee can be financed into the loan. Additionally, USDA loans require monthly mortgage insurance, which is included with the loan payment. USDA mortgages are only available to finance a borrower's primary residence.

Any mortgage loan for an amount above the conventional conforming loan limit is considered a jumbo loan. Interest rates and closing costs tend to run higher on jumbo loans than on conventional ones. Additionally, most lenders require an above-average credit score for jumbo borrowers.

Any mortgage that does not fall into the conventional or government category is considered non-traditional. These include bank statement programs, stated income programs, foreign national lending, loans to borrowers with recent bankruptcies or foreclosures, hard money loans, etc. These loans are offered by private investors. The interest rates, closing costs, and down payments for these loans are higher than for traditional mortgage programs. However, non-traditional lending can be a great vehicle to get otherwise unqualified borrowers into a home of their own. If you feel a non-traditional mortgage might be right for you, ensure you clearly understand the pros and cons of this type of loan.

If you are a citizen from another country and you want to buy a home in the United States to spend the holidays with your family or as an investment, Talk to me!