Refinancing

Conventional Loan Advantages

Conventional mortgage programs are the most popular in the U.S. for multiple reasons. Borrowers who are able to put down at least 5%-20% may find better pricing than they can get through FHA, VA, USDA, or non agency products. Additional advantages include:

• Purchase programs that allow for as little as 3% down for owner occupied properties

FHA Loan Advantages

Borrowers do not have to be first time home buyers to the eligible for our FHA mortgage programs. In many instances, seller paid closing costs may be permitted and down payment funds may be in the form of a gift or come from a down payment assistance program. Additional advantages may include:

• Low down payment (only 3.5% may be required)
• Seller contributions are allowed
• More flexible underwriting (approval)
• Closing costs that lenders can charge are restricted 
• FHA loans are “assumable” to other qualified buyers
• FHA Refinances can be streamlined (less documentation required for approval)
• Some closing costs may be financed (less out of pocket expenses)
• Some FHA loans allow for Energy Efficiency credits
• Some FHA loans can allocate costs for repair/upgrade within the loan
• The FHA loan is covered by a government loan insurance program which makes it more desirable for lenders and other institutions

VA Loan Advantages

Why consider a VA Loan? The two primary reasons why borrowers opt for VA financing is that they require zero down payment and credit requirements are often more lenient than alternative forms of financing (FICOs down to 580 considered). Other perks of VA mortgages include the lack of need for Private Mortgage Insurance (PMI), allowable seller paid closing costs, and the ability to roll a one-time funding fee into the financed loan.

USDA Loan Advantages

Most people opt for USDA financing as it’s one of very few 100% financing options in today’s marketplace. Credit guidelines are more relaxed than most alternatives and a single mortgage insurance premium can be financed into the loan amount thus reducing upfront costs.

HomeReady® Loan Advantages

HomeReady® can be a great alternative to FHA, VA, and USDA financing especially for borrowers or properties which may not qualify under those government backed programs (e.g. non military, middle-higher income wage earners, non rural areas, etc).