100% Financing Options

FHA Loans

FHA loans are regulated by the U.S. Department of Housing and Urban Development (HUD). Make sure that the lender you are working with is HUD approved. These loans permit home buyers who might otherwise not qualify for a home loan to obtain one, because the risk is removed from the lender by FHA, who insures the loan for the lender. FHA loans have several advantages compared to other types of financing.

You do NOT have to be a first time homebuyer to obtain an FHA loan. Credit requirements are not as strict as conventional loans. Many applicants are surprised to find that they can qualify for a low rate FHA loan even with past credit problems. FHA underwriters use "make sense" underwriting principles. An underwriter will look at the big picture rather than dwell on isolated credit issues from the past. If your credit history does not show late payments or collections in the past 12 months, your credit history will generally be considered acceptable. Old collections usually will not need to be paid off. If you have a Chapter 7 bankruptcy, it must be discharged for 2 years before an FHA loan can be utilized. Chapter 13 bankruptcy must be filed 2 years prior to making an application for financing. It must be discharged before closing your loan. Foreclosures will require 3 years of seasoning. Exceptions to all FHA guidelines can be made if there are extenuating circumstances that can be explained and documented.

FHA loans can be used for purchasing or refinancing. FHA allows for cash-out refinances up to 95% of the appraised value of the home. Manufactured homes are eligible. They must be on a permanent foundation.

Down Payment Requirement: FHA loans require a 3% down payment. However, this money can be a gift from a relative, non profit organization, or government agency. We can assist you in obtaining the required down payment through our relationships with various non-profit organizations and access to special government down payment assistance programs. Closing costs can also be financed into the loan.

VA Loans

VA loans are for qualified Veterans of the U.S. Armed Forces. These loans have very similar underwriting guidelines as FHA loans (see above). The main difference is that V.A. loans do not have any monthly mortgage insurance premium, thus the monthly payments are slightly cheaper than an FHA loan. These loans can be used for purchasing or refinancing a home. Manufactured Homes are eligible. They must be on a permanent foundation to qualify.

Down Payment Requirement: V.A. Loans do not require a down payment. Closing costs can be financed into the loan.

USDA Loans

USDA loans are another great loan product for buyers needing a zero money down loan option. Please note that USDA loans are not for financing farm land. They are used to finance residential property only. These loans do not have any monthly mortgage insurance premiums. They are only available in rural areas or low-density suburbs. Interest rates are regulated and are similar to FHA rates. These loans allow home buyers to finance up to $10,000 for home repairs if needed. You do NOT need to be a first time buyer to qualify for a USDA loan. However, you must buy a property located in a USDA eligible area. Your lender will assist you in determining if the house you want to buy is located in a USDA - eligible area. USDA loans can not be used to refinance a property. Manufactured homes are only eligible if they are newly constructed.

Down Payment Requirement: No down payment required. Closing costs can be financed into the loan.

Conventional Loans

Conventional loans are loans that are underwritten to Fannie Mae and Freddie Mac guidelines. Conventional loans have the strictest underwriting requirements. These loans are for borrowers with good or excellent credit history. Most conventional loans are now underwritten using automated underwriting systems. Mortgage insurance is required for loans with less than 20% down.

Down Payment Requirement: 3% minimum. We can assist you in obtaining the required down payment through our relationships with various non-profit organizations and access to special government down payment assistance programs. Closing costs can be financed into the loan.