Which is the Best Mortgage Option for Me?
Low Down Payment Mortgage Options
If you have limited funds for a down payment one of these mortgage options would most likely be the best choice for you:
USDA – USDA mortgages have income limits based on the number of people in your household. If you make less than $75,000/year and you are willing to limit the areas in Gainesville that you purchase a home, USDA may be a good mortgage option for you to explore.
FHA – You must have at least 3.5% down with an FHA mortgage. Gifts are allowed for the down payment. There are no restrictions on location or income. Contrary to popular belief, you do not have to be a 1st time home buyer.
VA – You must be a veteran to take advantage of a VA loan. There is some additional paperwork, but this is the best mortgage option if you are a veteran with little or no money saved to invest in a home.
SHIP – Up to a $40,000 forgivable loan with $0 payment provided by City and County governments. Funds can be used for down payment and/or closing costs. Program is dependent upon funding availability. Income and credit restrictions may apply.
HomeReady / HomePossible – Conventional program requiring only 3% down.
You Want to Refinance a Mortgage that is Upside Down
HARP – If your current mortgage is a conventional mortgage, this is your best option.
FHA Streamline – FHA Streamline is designed to easily reduce the interest rate and payment on an existing FHA mortgage.
VA Streamline – If you have a VA mortgage and want to reduce your interest rate and payment – this is your best option. Often, you can refinance with no appraisal or out of pocket costs.
USDA Streamline – For customers with an outstanding USDA loan, this is a way to refinance to a lower rate with limited paperwork and closings costs.
The Home Needs Repair or Remodeling
FHA 203k Loan: With this renovation mortgage you can purchase the home and get up to $31,500 for remodeling or home repairs (some limitation on types of repair or remodeling). This may be the best mortgage option for you if you’ve found the perfect home but it needs a little work.
HomeStyle Conventional Renovation Loan – conventional mortgage financing that allows extra money for remodeling and improvements at the time of home purchase. Borrower must qualify based on debt ratios and credit. This program will allow for home additions and pool installations as well as many other home improvements.
You Have Collections and Other Minor Credit Issues
FHA – FHA is more forgiving regarding credit blemishes than other programs. However, FHA still requires a 580 credit score and has restrictions on the number and type of credit issues.
USDA – If your credit issues are in the past – older than 1 year – USDA may be the program for you.
VA – VA lending can be more forgiving with the score and minor credit infractions.
Reverse – Good credit is not a requirement as long as all liens on the property can be paid off with the reverse mortgage. You can even buy out of a Chapter 13 Bankruptcy with a reverse mortgage. You must be 62 years of age or older.
Non-QM Loans – These are loans that allow for credit scores as low as 500 with higher down payments. Consult a mortgage planner.
You Have a Sizable Down Payment and Want a Good Rate and a Low Payment
Conventional – This is usually the best option if you have good credit and money down. Your mortgage professional can compare options without any obligation.
Reverse – If you are 62 years of age or older, you can get very good rates and NO monthly mortgage payment with a Reverse Mortgage. If you are looking to purchase and have a sizable down payment, a reverse mortgage may be the best mortgage option for you. Check out the FACTS before you decide.
Find out why the best rate quote isn’t always the best deal.
Mortgage Amount Over $510,400
Jumbo – This loan is designed for loan amounts over $510,400.
This list is not exhaustive – it is intended to be a guide to a variety of programs that might work for you. If you have any questions or would like additional assistance for issues that are not addressed here, you can schedule a free consultation with one of our mortgage planners, or contact us with your questions.