What's stopping you from becoming a homeowner?
At Highcrest Home Lending we understand that buying a home can be an intimidating process. Our representatives are your guides into the home buying world. We do not judge, we help you discover what mortgage will work best for you and your lifestyle.
conventional loans
Conventional loans follow the guidelines of Fannie Mae – the federal national mortgage association (FNMA) – or Freddie Mac – the federal home loan mortgage corporation (FHLMC). Conventional loans, unlike government-insured loans, are insured through private companies. Conventional mortgages are attractive to most borrowers because they often feature more attractive terms than jumbo or government insured loans. Conventional loans offer fixed rate and adjustable rate mortgages.
Key points for Conventional Financing:
Minimum of 3% down payment if borrower or co-borrower are first time homebuyers
Minimum of 5% down payment if borrower or co-borrower aren’t first time homebuyers
Minimum of 620 credit score; however, terms for borrowers with 740 or higher credit scores will be more attractive
Maximum loan amount limit - $453,100 – may vary depending on area
Loans do not require private mortgage insurance (PMI) if you have 20% or more to put down
Salaried employment or income for the last two years
Assets that cover 5% of the sales price
Gift funds are allowed in some cases
USDA (RURAL DEVELOPMENT)
USDA loans are mortgages backed by the U.S. Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan program. This is a government backed program offering lower interest rates and no down payment. USDA loans are only allowed in eligible areas.
Key Points for USDA (Rural Development):
Available to home buyers with low-to-average income for their area
100% financing (no down payment)
Reduced mortgage insurance premiums
Lower interest rates
Flexible credit guidelines
Must meet income limits and property eligibility
FHA
FHA loans are government backed loans by the Federal Housing Administration. These loans are popular with first time homebuyers because it allows for a lower down payment and below market interest rates.
Key points for FHA:
Minimum of 3.5% down payment
Flexible credit guidelines
Gift funds are allowed
Available for primary residence only
Loan Amount Limit Restrictions (depending on subject property location)
VA LOAN
VA loans are insured by the Veterans Administration. They are one of the best loans on the market; however, they are only available to Veterans of the United States Military, or their surviving spouses. There is no down payment or PMI requirement for a VA loan, so your overall house payment is usually less than a similar mortgage under other programs.
Key points for VA:
100% financing available
Minimum of 620 credit score (to avoid higher interest rates)
No monthly private mortgage insurance
Lower monthly note and interest rate
JUMBO
A Jumbo Loan is a mortgage loan exceeding the loan limits established by government regulation. Conforming loan amount limit is $453,100. This may vary depending on the area. Jumbo loans are a popular way for qualified buyers to purchase a luxury home. Jumbo loans require higher credit scores, lower debt to income ratios and larger down payments.
Key points for Jumbo:
Loan amounts above $453,100
High income buyers
Credit scores of 700 or higher