If you are planning to borrow $970,800 or less for a single-family home, you should be looking into a conforming conventional loan. Conventional conforming loans are not made by a government entity, like FHA and VA loans, but instead, follow the guidelines set forth by Fannie Mae and Freddie Mac. These established guidelines usually call for a minimum credit score, certain income requirements, and a minimum down payment (generally between 3% and 20%).
Conventional home mortgage loans have either fixed or adjustable rates. A fixed-rate mortgage means that your monthly mortgage payment remains the same for the life of the loan, and typically has a term of 15 or 30 years. A shorter-term loan can often denote a lower interest rate. An adjustable-rate mortgage, or ARM, fluctuates in relation to market index; therefore, monthly payments can increase or decrease accordingly.
Conventional loans generally have the most rapid qualifying process, as the guidelines are clear and concise. However, every conventional mortgage lender will review and verify a borrower’s credit, income, and assets, along with an appraisal of the property.
VA loans are made by Fairway Independent Mortgage Corporation and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase or refinance of a home. The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses. A VA loan is generally available with no down payment and no monthly mortgage insurance, making this a great option for eligible veterans.
Fairway is committed to helping military families across the country by partnering with the American Warrior Initiative.
*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds the VA county limits. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits. Fairway is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD, or FHA, or any other government agency.
A jumbo loan, a type of non-conforming loan, is a home mortgage that allows financing for loan amounts that exceed the conforming maximum of $970,800 (depending on what area of the country you’re in, loan amount may vary). Since home prices for larger or luxury homes can often surpass this amount, this loan might be perfect for the house of your dreams.
A jumbo loan is your best (or only) option if you need to borrow between $970,800 and $3,000,000 for a home purchase or refinance. Jumbo loan rates can be higher, lower, or the same as conforming loan amounts.
With the fluctuating market, jumbo home mortgage loans do call for stricter requirements than in years past, but still follow a similar process of a typical loan. You will generally need a 10-20% down payment and will be able to potentially receive lower fixed or adjustable rates offering flexibility for financing with a bigger loan.
If you have credit challenges, an FHA loan may be the right answer for you, especially if you have been through a foreclosure or bankruptcy. These loans usually have higher debt ratio allowances, which can make a difference when you have steady income but have debt from college loans, credit cards, etc.
This FHA insurance allows lenders such as Fairway to provide home loans with down payments as low as 3.5% of the purchase price. The less restrictive guidelines allow borrowers who may not qualify for a conventional loan to refinance and consolidate debts into a low, fixed-rate loan.
*Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.
Owning a home outside of city limits may be easier than you thought with USDA home financing from Fairway Independent Mortgage Corporation. The USDA Guaranteed Rural Housing mortgage is available for salaried, non-salaried, and self-employed borrowers, and is not limited to first-time homebuyers.
0% down payment required
620 minimum FICO
Primary residence only
Fixed-rate financing available at USDA interest rates
Gift funds allowed for closing costs
New construction financing options available