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Purchase with an FHA Home Loan
- May allow you to use a gift or grant for all or a portion of down payment and closing costs.
- Require less cash upfront, but you typically have to pay FHA mortgage insurance
- Let you qualify with a co-applicant, even if the person doesn’t live in the home.
- You can typically only have one FHA mortgage at a time.
Conventional Purchase Loan
Why Are Conventional Loans So Great?
The Conventional Purchase program has very competitive pricing compared to some other programs available. This can make a big difference in your monthly mortgage payment and even the interest you will pay over the life of the loan. Even though this program is more difficult to qualify for you need to consider it, especially if you have equity in your home, above average credit, or would like to avoid mortgage insurance.
What Are the Advantages of Conventional Loans?
- Gift funds OK
- Competitive pricing
- No prepayment penalty ever
- 30yr, 25yr, 20yr, 15yr, or 10yr
- Up to 50% debt to income ratio
- With or without mortgage insurance
What Are the Requirements?
- Minimum credit score 640
- Debt to income ratio under 45%
- Need to verify your down payment
Frequently Asked Conventional Questions:
What are the documents I will need?
- Copy of driver’s license
- Two W2’s or Tax returns
- Two most recent paystubs
- Two most recent asset statements
- Copy of your mortgage statement
- Contact information for insurance agent
How much can the seller pay towards my closing costs?
Typically the seller can pay 3% of the sales price towards closing. If you put a down payment over 10% they can pay up to 6% towards your closing.
What types of homes can I purchase?
Conventional loans allow you to purchase single family homes, condos, investment properties, and 2nd vacation homes.
Will I have mortgage insurance?
The short answer is it depends. There are conventional purchase programs with or without mortgage insurance. This includes monthly mortgage insurance, financed mortgage insurance or lender paid mortgage insurance.
Should I get a home inspection?
Yes, it’s always a good idea to get a home inspection before you purchase a home. That way you know right away if there are any issues with the property you are considering purchasing.
How long does it take to purchase a home?
The normal turn time for a purchase is about 30 days. This assumes you have all your documentation available and we schedule your appraisal upfront.
How is my interest rate determined?
The interest rate you qualify for depends on the following factors: credit scores, down payment, type of loan, mortgage insurance or no mortgage insurance and the current bond market. All these factors combined play a role in the interest rate you qualify for.
Purchase With a VA Loan
The guarantee VA provides to lenders allows them to provide you with more favorable terms, including:
- No downpayment unless required by the lender or the purchase price is more than the reasonable value of the property
- No private mortgage insurance premium requirement
- VA rules limit the amount you can be charged for closing costs
- Closing costs maybe paid by the seller
- The lender can’t charge you a penalty fee if you pay the loan off early
- VA may be able to provide you some assistance if you run into difficulty making payments
You should also know that:
- You don’t have to be a first-time home buyer
- You can reuse the benefit
- VA-backed loans are assumable, as long as the person assuming the loan qualifies
Disclaimer This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Credit and collateral are subject to approval. Equal Housing Lender.
Loan Tracking System - The JFQ Promise
I'd like flexibility for the loan term and down payment
During our pre-approval process, we will be able to talk you through the different options we can structure the length of your loan and make sure the payment is fit to your budget! We will look at all options possible to ensure the loan we select is the right one for you! Click here to get started with our application process.
Disclaimer: This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Credit and collateral are subject to approval. Equal Housing Lender.
Can JFQ Lending match or beat quotes?
- No escrow Waiver fee
- Defer up to 2 months’ payments
- Low Fixed and 5/7 year hybrid arms
- All information securely transferred electronically
*Disclaimer: This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Credit and collateral are subject to approval. Equal Housing Lender.