Conventional Fixed Rate Loans
Conventional fixed rate loans usually require a minimum of 5% down and a
fairly good recent credit history. Down payments must be from your own
funds. The interest rate remains the same for the term of the loan.
Conventional Adjustable Rate Loans
Conventional adjustable rate loans also require a minimum of 5% down and a
fairly good recent credit history. The interest rate remains fixed for the
first 1, 3, 5, 7 or 10 years. The rate will adjust with the market after
the initial fixed rate period according to the terms established when you
close. A low initial rate may help you qualify for a larger loan.
FHA
Loan & VA Loans
Government loans often allow slightly less-than-perfect credit records.
They are not restricted to first time home buyers. If you've had a
bankruptcy discharged and good credit since, you may qualify after two
years. Gift down payments are permitted. Government loans allow a higher
debt ratio than conventional loans. FHA loans require only 3% down and can
be fixed or adjustable rate loans. VA loans have a zero down payment and
are fixed rate only.
Non-Conforming Loans
Non-conforming loans often allow imperfect credit and higher debt than
conventional loans. Some loans can be approved with limited documentation
of income, debt, employment and assets. These loans offer substantially
higher interest rates, but may allow you to buy a home when your credit is
poor or you are self-employed. Most, but not all, require substantial down
payments. Recently, non-conforming loans are hard to find.
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