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Mon - Fri: 9am - 5pm

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Company NMLS 129626

different types of

Loans

USDA First-Time Home Buyer Loans.

A USDA home loan is a zero down payment mortgage for eligible rural and suburban homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.

Loan guarantees: The USDA guarantees a mortgage issued by a participating local lender — similar to an FHA loan and VA-backed loans — allowing you to get low mortgage interest rates, even without a down payment. If you put little or no money down, you will have to pay a mortgage insurance premium, though.

Direct loans: Issued by the USDA, these mortgages are for low- and very low-income applicants. Income thresholds vary by region. With subsidies, interest rates can be as low as 1%.

Home improvement loans and grants: These loans or outright financial awards permit homeowners to repair or upgrade their homes.

 

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Qualifying for a USDA Loan...

Qualifying for a USDA Loan

  • Loan limit of $424,100
  • Be able to afford the housing payment AND any existing debt
  • Have a FICO score of 620
  • No Money Down
  • Lender Assist Available

FHA Loans.

What Is a Federal Housing Administration Loan – FHA Loan?

An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). FHA loans require a lower minimum down payment and lower credit scores than many conventional loans.

As of 2019, you can borrow up to 96.5% of the value of a home with an FHA loan (meaning you’ll need to make a down payment of only 3.5%). You’ll need a credit score of at least 580 to qualify. If your credit score falls under 580 guidelines, then compensating factors (retirement assets, residual income, favorable job history) will be required in order to receive an approval. With FHA loans, your down payment can come from banking assets, investment assets, even a gift from a family member or domestic partners if credit score and ratios are inline.

All these factors make FHA loans popular with homebuyers.

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Qualifying for an FHA Loan...

Qualifying for an FHA Loan

  • Have verifiable income
  • Be able to afford the housing payment AND any existing debt
  • Minimum 3.5 percent down payment
  • Seller Assist up to 6% of purchase price
  • Have a FICO score of at least 580
  • FHA loan limits on a per county basis
  • Lender Assist Available

Conventional Loans

A conventional mortgage or conventional loan is any type of home buyer’s loan that is not offered or secured by a government entity, such as the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA) or the USDA Rural Housing Service, but instead is available through or guaranteed by a private lender (banks, credit unions, mortgage companies) or the two government-sponsored enterprises, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Currently, conventional mortgages represent around two-thirds of the homeowners’ loans issued in the U.S. The secondary market for conventional mortgages is extremely large and liquid. Most conventional mortgages are packaged into pass-through mortgage-backed securities, which trade in a well-established forward market known as the mortgage TBA (to be announced) market. Many of these conventional pass-through securities are further securitized into collateralized mortgage obligations (CMOs).

 

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Qualifying for a Conventional Loan...

Qualifying for a Conventional Loan

  • Credit – The minimum credit score requirement is 620.
  • Down Payment – Minimum 3% down
  • Seller Assist – up to 3%, or up to 6% with 10% down payment.
  • Income – Verifiable income.
  • Debt-to-income ratio must not exceed 43%.
  • 1-4 “plex” – Loans available for 1-4 unit property so long as 1 unit is the owner’s primary residence.
  • Lender Assist Available

VA & VA Renovation.

A VA loan is a mortgage loan available through a program established by the United States Department of Veterans Affairs. VA loans assist service members, veterans and eligible surviving spouses to become homeowners. The VA sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan. VA home loans are provided by private lenders, such as banks and mortgage companies.

The VA renovation loan, also known as the VA rehabilitation loan, is a VA-guaranteed loan program that allows homebuyers to purchase a home and fund repairs and improvements.

For many homebuyers, move-in ready homes are hard to find. And, when they are available, the cost can be well above what a lot of homebuyers can afford. This makes fixer-uppers more appealing, but securing funds to pay for the work can be a challenge.

But, with the help of a VA renovation loan, eligible homebuyers can find the perfect fixer-upper and get money to improve the home.

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Qualifying for a VA Loan

Qualifying for a VA Loan

  • COE (Cetificate of Eligibilty)
  • Minimum FICO 600
  • Zero money down
  • Seller Assit up to 6% or more based on seller.
  • Lender Assist Available

It’s important to note that getting a COE (Certificate of Eligibility) doesn’t mean veterans qualify for a mortgage — these are two separate processes. Once you qualify for a COE, you can shop for a home loan. However, you still have to meet lender requirements which include things like income verification, credit (FICO) score, and debt-to-income ratio.

New Construction Loans

A construction loan is a loan to pay for the building of a house. As work progresses, the lender pays out the money in stages – known as draws. Draws are based on stages of work completed.

To gain approval, the lender will need to see a construction timetable, detailed plans, and a realistic budget, sometimes called the “story” behind the loan. Construction loans are an intricate process, call us today to discuss your options.

 

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Qualifying for a home construction loan...

Qualifying for a home construction loan

  • Good to excellent credit
  • Stable income
  • Low debt-to-income ratio
  • A down payment of 30* percent
  • Lender Assist Available

The lender will also want detailed information about the lot, planned house size, materials used, and what contractors will be working on the home. Working with a reputable general contractor can make gathering this information and navigating through the process easier.

*subject to favorable change

Other Loan Options

Looking for more than your typical types of loans? Call us for more details on the following:
Structural Rehab Loans
Mobile Home Loans
Jumbo Loans
Investment Loans
203K Rehab Loans
Structural Add-on Loans
VA Rehab

 

Note: All information on this page, including credit minimums, is subject to change. 

Over 38 years of experience

Ron Markle - 

american dream mortgage, inc

164 Philadelphia St. Indiana, PA 15701

contact Us

(724)-464-2274
rmarkle@amdreammtg.com
9am-5pm evenings & weekends by appointment

let us help you make your dream come true