Types of Loans
A conforming loan is a mortgage that is equal to or less than the loan limit set annually by Fannie Mae or Freddie Mac, the government-sponsored agencies that purchase the bulk of U.S. residential mortgages from banks and other lenders. The current conforming loan limit for a single-family home or condominium in most areas of the country is $424,100, with higher limits allowed for designated high-priced markets.
The terms conforming and conventional are often used interchangeably. Mortgage loans that are higher than the conforming loan limit are called jumbo mortgages or nonconforming loans.
Non-conforming loans are offered to borrowers who do not qualify for conforming loans. They typically have slightly higher interest rates, and may have additional upfront fees and/or insurance requirements.
Loans can be called non-conforming for several different reasons. The best-known type of non-conforming loan is the jumbo loan.
Jumbo loans are too large to meet the guidelines of a conforming loan. For example, if you are buying a home and you need a mortgage for more than your typical conforming loan limit of $424,100, you’ll need to acquire a jumbo loan.
Since jumbo loans do not meet the guidelines of a conforming loan, they are harder to sell on the secondary market. Since lenders are less confident in their ability to resell this type of mortgage, so they will offset this financial risk by charging the borrower a higher interest rate.
Integrity Home Mortgage has a construction loan program to assist you in building your dream home.
- Up to 90% of cost
- Minimum Credit Score of 660
- Construction Consultant to help you with a hassle free process
- Pre-qualifications available upon request with no obligation
- Competitive Rates with an array of products from which to choose for permanent financing
Conventional Loans are mortgages that follow the guidelines of Fannie Mae or Freddie Mac (government sponsored enterprises).
Benefits to Conventional Loans:
- Typically has a 5% down payment
- Allows both owner-occupants and investors to purchase 1-4 units, townhouses, approved condos or Planned Unit Developments (PUDs)
- Allows for the purchase of single family second homes
- Gift funds are allowed after the borrower’s initial 5% contribution
- Seller contributions are allowed depending on occupancy and downpayment
- No first-time homebuyer restrictions
- Co-signers are allowed
- Conforming loan limits apply
- Mortgage insurance required for purchases with less than 20% down
VHDA (Virginia Housing Development Authority) was developed to assist first-time homebuyers or those who have not owned and occupied a home in the last three years.
Benefits to VHDA Loans:
- Up to 97% Financing
- Gift funds allowed
Looking to buy a home but have little down payment? Then a FHA loan through Integrity Home Mortgage Corporation may be the loan program that suits your needs.
The Federal Housing Administration (FHA) was established in 1934 and insures your loan allowing approved lenders the opportunity to provide a better offer to their customers. FHA assists people in becoming homeowners by providing lower down payment requirements and a more lenient credit guidelines.
Benefits to FHA Loans:
- 3.5% down payment
- Fixed rates available
- Gift funds allowed for assistance with down payment
- Higher sales price and income limits allow more buyers to qualify
- Upfront Mortgage Insurance can be financed into the loan
- Typically allows seller paid closing costs up to 6%
FHA Plus Loans
FHA Plus is a VHDA financed FHA insured loan that assists borrowers who have little or no down payment.
Benefits to FHA Plus Loans:
- Allows 100% financing through two loans
- FHA guidelines apply
- FHA maximum loan amounts apply
- Seller contribution is allowed
Is lack of down payment stopping your from buying a home? Did you know USDA RD provides 100% financing?
The United States Dept. of Agriculture Rural Development (USDA / RD) Single Family Housing Guaranteed Loan Program assists approved lenders like Integrity Home Mortgage Corporation provide financing for low income rural residents and gives homeownership opportunities to many families in rural America.
Benefits to USDA/RD Loans:
- 100% Financing Available
- Flexible credit and qualifying guidelines
- Competitive rates
- Closing cost can come from other sources such as seller contribution and/or gift funds
- Income limits do apply (ask your lender for limits in your county)
- Minimum credit score is 620
- Property must be Rural Development Eligible (to see if property is eligible click here)
Are you a Veteran, active service member or surviving spouse? If so, then you may qualify for a VA home loan.
The Department of Veteran Affairs (VA) assists eligible service members, Veterans and surviving spouses with exclusive benefits that assist with the purchasing of a new home. VA Home Loans are provided by private lenders, such as Integrity Home Mortgage Corporation. VA guarantees a portion of the loan, enabling us to provide you with more favorable terms.
Benefits to VA Loans:
- NO MONEY DOWN – 100% financing available
- Fixed rates
- NO income limits
- NO limit to seller paid closing costs
- NO Mortgage Insurance
- VA funding can be financed
- VA benefits are reusable
- Seller concessions allowed (ask your mortgage loan originator for details.)
Program guidelines and restrictions apply to all programs. All borrowers subject to underwriting and qualification. Licensed by Virginia State Corporation Commission License #MC-3599 NMLS ID #208516 (www.nmlsconsumeraccess.org)