Frequently Asked Questions from Our Clients
Conventional, FHA, VA, Jumbo
Factors that determine interest rate include but are not limited to: Loan-to-Value (your loan amount/property value), credit scores, credit profile, loan program (type and term), and property type. Everything is risk based. The higher the risk, the higher the rate or the cost to get a specific rate.
The mortgage industry has become high tech so if you know the details (work address, exact income, etc.) you don’t need to have any documents with you at the time of application. We try and get all the documents electronically first. If we cannot obtain electronically, we will send out a personalized list for you.
It is. Don’t assume you won’t qualify/ It’s always best to call and ask because every situation is unique.
Part of my job is to review options so you can make an educated decision on what loan is best for you.
There are too many differences to list, but here are a few major differences:
- FHA loans are insured by the Federal Housing Administration, therefore, have more flexible underwriting guidelines (it can be easier to qualify for a FHA loan).
- You are required to pay Mortgage Insurance (called Mortgage Insurance Premium or MIP) on a FHA loan.
- Conventional loans typically require a minimum credit score of 620 vs FHA minimum credit score of 500.
- FHA has programs that make it easy to do a refinance as long as you have made your monthly mortgage payments on time.
- Conventional loans are available for owner occupied, second homes, and investment properties and FHA is only for owner occupied properties.
There are too many differences to list, but here are a few major differences: You must be a veteran or in some cases, the unmarried surviving spouse of a veteran to get a VA loan but not a FHA loan. VA purchase loans may not require a downpayment and FHA requires a 3.5% down payment
The minimum down payment requirements are: VA $0, FHA 3.5%, Conventional 3% to 5%, Jumbo 5% to 10% depending on the loan size
The three main reasons people refinance are to lower the monthly payment, shorten the term of the loan, or to take equity (cash) out. Each person’s situation is unique so the best advice I can give is to call me to review your goals and see if refinancing makes sense.