Loan Programs
There are a number of standardized programs available to borrowers who are looking to purchase or finance a home for themselves or their families.
Conventional Loans
Conforming conventional loans are loans that adhere to the standards set by Fannie Mae and Freddie Mac, including maximum loan amounts.
As of 2022, the standard limit for a conforming conventional mortgage loan maximum is $647,200 for a single-family home that you intend to live in. For borrowers in high-cost areas, the limit can be as high as $970,800.
Jumbo Loans
Jumbo Loans, also known as High Balance loans, are when they are over $624,200 for a single-family home, and over $970,800 in high cost areas. These loan amounts are over what is considered the lending limits for conforming loans.
Jumbo loans typically require higher credit scores than conforming loans (680+). You may also need to have a lower debt-to-income ratio (DTI) and put down a larger down payment.
FHA – Federal Housing & Administration
These loans allow you to get into a home with a credit score as low as 500 if you have a 10% down payment, or 580 if you have a 3.5% down payment. This may be a good option if your credit score isn’t high enough to qualify for a conventional loan. Learn more
VA – Department of Veterans Affairs
VA loans are designed for select members of the military community, their spouses, and other beneficiaries. They don’t require a down payment and don’t charge private mortgage insurance. Learn more
Non-Prime / Subprime Loans
Conforming loans require that you have a debt-to-income ratio below 50% and a credit score of 620 or higher. But if your credit isn’t quite there, you may qualify for a subprime mortgage loan.
These loans are non-conforming and may charge high closing costs and interest rates. However, they can provide a way to get into a home without needing to wait until your credit is in excellent shape. Learn more
Reverse Mortgage
Get supplemental retirement income by converting a portion of your home’s equity into cash. Receive payments as a lump sum or in monthly distributions. Learn more
Second Mortgage – Line of Credit
A second mortgage is a loan made in addition to the homeowner’s primary mortgage. HELOCs are often used as second mortgages. Learn more