Some Basic Facts Concerning FHA Conventional And VA Loans

Dated: 02/28/2018

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Here are some facts that may be able to help you determine what type of loan is best for you.  There are generally 3 types of loans from which to choose depending on your current financial status.  The following are basic requirements, conditions and benefits of each:

FHA

  • 3.5% down

  • 580 credit score

  • Mortgage insurance required (usually .85% of loan amount annually)

  • sellers can pay up to 6% of closing costs

  • Dept to ratio income 41%

Conventional

  • Can use to buy primary residence, 2nd home or rental property

  • 620 credit score

  • 10-30 year terms

  • as low as 3% down

  • no monthly insurance with 20% down

  • Dept to ratio income 43%

VA

  • Served 90 consecutive days during wartime or

  • Served 181 days during peacetime of

  • Served 6 or more years in the National Guard or Reserves

  • Must obtain a Certificate of Eligibility

  • No money down

  • No monthly mortgage insurance

  • Loan is assumable

  • No required dept to ratio income however the Veterans Administration does require residual income.

Dollars Home Property House Real Estate Mo

Always consult with a professional loan officer when making a decision of which loan is best for you as everyone's situation is unique.

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Mary Anderson

Mary is a trusted realtor who put's her customers needs above the rest, and has shown to be a tough negotiator. Knowing the market well and bring 30 years of customer service to the table has set her ....

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