You will need to work with a dedicated Loan Originator to figure out which loan program best suits your needs, goals, and qualifying factors. In addition to this, several loan programs make it possible for you to realize your dream of homeownership. Here is a brief overview of the most popular loan programs available to homebuyers.
USDA Loan – 100% Financing
The United States Department of Agriculture (USDA) provides a 100% financing option for homebuyers. USDA interest rates are typically lower than Conventional mortgage rates, credit requirements are more lenient, and you don’t have to be a first-time homebuyer to qualify. Not all counties within your state are eligible for a USDA Loan. To find out if you are eligible for this loan program, consult with your licensed Loan Officer from First World Mortgage.
FHA Loan – Low Money Down
The Federal Housing Administration (FHA) insures loans so you will only need to put 3.5% of the purchase price as a down payment. Just like USDA Loans, FHA interest rates are typically lower than Conventional mortgage rates, and credit requirements are more lenient. However, you don’t have to be a first-time homebuyer to qualify. You can use an FHA Loan to purchase a home anywhere, with max loan amounts varying by each county.
Conventional Loan – Low Money Down
Conventional Loans no longer require you to put 20% of the purchase price as your down payment. You now only need to put 5% of the purchase price as a down payment to take advantage of this incredible option. Rates are typically a little higher than some of the government-backed programs (FHA, USDA, VA), however the closing costs will be a little lower.
FHA 203k- For Home Improvements/Repairs
The FHA 203k gives homebuyers the option to upgrade the home they wish to purchase. The costs of the upgrades/repairs will be included into the loan, so you do not have to pay for it out-of-pocket. This loan is especially popular for home buyers wanting to upgrade kitchens, re-do bathrooms, and who want to add their personal touch.
VA Loan – 100% Financing for Military Veterans
The Department of Veterans Affairs (VA), is a government-backed program for military veterans. Veterans are not required to have money for a down payment, and there is no monthly mortgage insurance. You will need to obtain your certificate of eligibility to take advantage of this 100% financing option. If you need help obtaining your VA Certificate of Eligibility, your Loan Officer can assist you.
CHFA – 100% Financing
The Connecticut Housing Finance Authority (CHFA) funds loans for first-time homebuyers so they can finance the entire purchase price, and even closing costs. The interest rates are often the lowest rates available with CHFA. However, this loan option is reserved for homebuyers who fit the selection criteria.