CONVENTIONAL

A conventional loan is a type of mortgage that is not part of a specific government program, such as Federal Housing Administration (FHA), Department of Agriculture (USDA) or the Department of Veterans’ Affairs (VA) loan programs. However, conventional loans are commonly interchangeable with “conforming loans”, since they are required to conform to Fannie Mae and Freddie Mac’s underwriting requirements and loan limits. 

There are two primary categories of conventional mortgages:

  • Conforming: A conforming mortgage follows the guidelines put in place by Freddie Mac and Fannie Mae, including loan limits.

  • Non-conforming: These mortgages include both “jumbo loans” which exceed the loan limits imposed by government-backed agencies, niche products for unusual circumstances and riskier products that are much less common these days.

FHA

An FHA home loan is a mortgage insured by the Federal Housing Administration. This loan can be a great option for buyers who wish to put down as little as 3.5%. FHA loans also have less stringent guidelines than some other loan products for income and debt requirements, which makes it a popular mortgage for first-time homebuyers. An FHA loan can be easier to qualify for than some conventional mortgage programs, making it a great option for many first-time homebuyers. The flexibility of having lower down payment requirements, tolerance for a wider range of credit histories and the potential for easier future refinancing makes FHA loans a better match for buyers that may not have the right financial profile for other types of home loans.

VA

A VA loan is guaranteed by the United States Department of Veterans Affairs. The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction. The VA does not originate loans, but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program.

  • A VA Loan allows our military personal to buy a home with NO DOWN PAYMENT and finance 100% of the home's purchase price up to $453,100.

  • VA loans have NO PMI = Lower Monthly Payments - A VA Loan offers a HUGE savings benefit. They do NOT require monthly PMI, or private mortgage insurance. PMI is an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value to offset the lenders risk.

  • Interest rates are also typically lower with a VA Loan than a conventional loan. A lower rate combined with monthly PMI savings can substantially lower your monthly payment.

  • VA Loans require no down payment, and have no mortgage insurance, plus you can roll all your closing costs into the loan. This makes for one heck of a great first-time home buyer deal for military veterans wanting to buy a home! The country appreciates your service. This is one way we pay you back. Today mortgage rates on VA loans are very low, making homes even more affordable.

USDA

The US Department of Agriculture administers an income restricted mortgage loan guarantee program called the USDA Rural Development Loan. Commonly referred to as just a USDA Loan, RD, or Rural Housing loan.

This USDA loan is designed to provide low cost housing for those wanting to live in rural areas, and is primarily for first time home buyers, although you do not need to be a first time home buyer to use this program. Prospective home buyers can apply with a USDA Home Loan Lender like us, who will process, underwrite, and close your mortgage loan.

 

You DO NOT need to go through a USDA office to get this loan.

 

This is not a “farm” loan. You can not use it to buy a farm. Rather it is a mortgage loan that is designed to support housing in rural communities. Not all “rural” areas are in the middle of a cornfield. Many areas qualify. We can help you determine if your area is eligible

JUMBO

A non-conforming loan that allows a borrower to purchase or refinance a high value property is considered a jumbo home loan. For most areas of the country the current conforming loan limit, set by government enterprises, is $453,100. If you have a low debt-to-income (DTI) ratio, a higher credit score, and healthy reserves, a non-conforming jumbo loan may be right for your high-value, luxury home.

  • Loan amounts up to $2 million

  • Eliminates the need for secondary financing

  • Allows buyers to finance more expensive properties in counties with lower conforming loan limits

  • No prepayment penalties 

CHFA 

A CHFA (Colorado Housing and Finance Authority) is a down payment assistance loan program. CHFA offers grants or second mortgage loans to help with down payment and closing costs associated with the loan. Find out more here: www.CHFAINFO.COM

8 1/2 S Parish Ave

Johnstown, CO 80534

1635 Foxtrail Drive

Loveland, CO 80538

 

 

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T: 970-669-8925

F: 970-658-1311 

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