Need A Home Loan, You Have Options.

Below is a side-by-side comparison of FHA vs USDA loan

FHA HOME LOANS

No Income limits
No geographic restrictions
Must legally work in the U.S.A.
Must have a valid SS #
2 years of employment history
Owner Occupied Only
1-4 Unit Family
PUDs
Approved Condos
Manufactured Homes
Purchase – 96.5% + 1.75% funding fee
Refinancing – up to 85% cash out + 1.75%
Rate and term refinance – up to 97.75% +1.75%
3.5% Down Payment
Purchase
Refinance (up to 85% c/o)
Rehabilitation/ Repair
New Construction
30 year fixed rate
15 year fixed rate
No pre-payment penalty
Down Payment can be a gift and/or HomeStart Grant
Housing 31% Total Debt 43%
Higher ratios may be considered Case by Case
Non-occupant co-borrower may be used
Perfect credit not required
Bankruptcy 2 years after Ch. 7 discharge
Bankruptcy 1 year after Ch. 13 Filed
Foreclosure 3 years after closed
Non-traditional Credit Allowed
1.75% up front (can be placed in loan) 0.85% per year, paid monthly
Seller can contribute up to 6% of sales price to help cover closing costs
Gift funds allowed to cover closing costs
Property must meet HUD requirements

USDA HOME LOANS

Income limits from USDA
Geographic restrictions by USDA
Must legally work in the U.S.A
Must have a valid SS #
2 years of employment history
Owner Occupied Only
Single Family Only
New Manufactured Homes on Foundation
No Lot Size Restriction
100% plus 2% USDA Guarantee Fee
Purchase
Refinance up to 100% plus 2% guarantee fee
30 Year Fixed Rate
No Prepayment Penalty

Housing 29% Total Debt 41%
Higher ratios may be considered with compensating factors
Perfect credit not required
Bankruptcy 2 years after Ch 7 discharge
Minimum credit allowed
Non-traditional credit allowed
2.0% upfront RD guarantee fee (can be financed into loan)
.50% per year paid monthly
No limit on seller contribution
Gift funds allowed to cover closing costs
Property must meet HUD requirements

Learn More

If your still not sure which home loan option works best for you, contact us our mortgage professionals can answer your questions and get you started to home ownership.