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Loan Products

What is an FHA loan?

An FHA loan is insured by the Federal Housing Administration (FHA) and issued by an FHA approved lender. They offer options to borrowers with lower minimum down payments and credit scores. While FHA loans are popular with first-time homebuyers, they are available to anyone who qualifies.

Benefits of an FHA loan:

  • More flexible qualification requirements
  • Borrowers not required to be first time homebuyers
  • Down payments as low as 3.5%
  • Credit scores as low as 580
  • Gift funds allowed
  • Up to 6% seller-paid closing costs
  • Financing up to 96.5% of home purchase price

Who qualifies for FHA loans?

  • Homebuyers with lower credit scores
  • Borrowers who would prefer to make a lower down payment

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What are USDA Loans?

USDA loans are mortgages backed by the U.S. Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan program. USDA homes offer lending to properties residing in a rural area.

Benefits of a USDA Loan:

  • No down payment required
  • Available for purchase or refinance
  • Gift funds allowed
  • Eligible closing costs may be financed**
  • Up to 6% seller-paid closing costs

**must be supported by appraisal value

 

Who are USDA loans for?

USDA Rural Housing loans are available to qualified low-to-moderate income homebuyers purchasing a home in a designated rural area.

What are the requirements for USDA Loans?

  • U.S. citizenship or permanent residency
  • Property serves as the primary residence and is located in a qualified rural area
  • Ability to prove creditworthiness, typically with a credit score of at least 640
  • Stable and dependable income
  • A willingness to repay the mortgage – generally 12 months of no late payments or collections
  • Adjusted household income is equal to or less than 115% of the area median income

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What is a VA home loan?

A VA home loan has a portion of the loan balance guaranteed by the U.S. Department of Veterans Affairs (VA). Veterans who qualify may find homeownership more accessible through VA-backed loans than other financing programs.

With no down payment, flexible income and lenient credit requirements, the VA home loan is a great tool to help our military members find a place to call home. VA home loans benefit veterans, service members and surviving spouses.

Benefits of a VA Loan:

  • No down payment options
  • No private mortgage insurance (PMI) requirement
  • Lower interest rates than traditional mortgages
  • Higher debt-to-income ratios accepted
  • Reduced fees as compared to traditional mortgages
  • Seller can offer up to 4% concessions to cover VA loan related loan closing costs
  • Borrow up to 100% of the home’s value with a cash out refinance
  • Rate and term refinance options

Who qualifies for VA home loan?

VA loans are available to active duty service member, veterans, National Guard and Reserve Members, and certain surviving spouses.  Eligibility depends on your service period and duration of service.

  • Certificate of Eligibility (COE) will be required to determine eligibility and VA funding fee

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What is a conventional loan?

A conventional mortgage is a non-government loan that meets requirements set by the Federal Housing Finance Agency (FHFA) and meets the funding criteria of Freddie Mac and Fannie Mae. Conventional loans offer low interest rates to borrowers with excellent credit scores.

Competitive rates and countless options

Homebuyers seeking a conventional loan typically enjoy the largest selection of loan options at the most competitive rates. Since risks and guidelines are well-defined, conventional loans are popular with both mortgage lenders and homebuyers. Kastle Home Loans offer several Fannie Mae and Freddie Mac programs tailored to different homebuyer situations, which means you can shop for the most competitive rates and terms to maximize how much you can get from a conventional loan.

Benefits of a conventional loan:

  • Both fixed- and adjustable-rate options available
  • Financing up to 97% of the purchase price (up to 95% with conforming high-balance)

Who qualifies for a conventional loan and what are the limits?

Homebuyers who meet the following criteria may qualify:

  • Homebuyers with good credit (scores as low as 620) and a qualifying debt-to-income ratio
  • Homebuyers who do not need to borrow more than their county limits

If you don’t qualify for a conventional loan:

Conventional loans are popular because they have such clearly defined guidelines. For anyone who doesn’t meet those guidelines, Kastle Home Loans, LLC has other options like FHA loans to help you qualify for the property you love.

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