What's Better: FHA or Conventional Loans?

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With the spring real estate market warming up, I'm receiving a lot of questions about what type of home loan is right for you. There are a lot of different options out there, and I'll be explaining a few to you today.

The FHA loan is a good option because they have flexible guidelines and allows for a wider range of buyers to purchase homes. They're lenient with credit scores and will accept borrowers with debt-to-income ratios that are a little higher. This works for some people, but it's simply not for everyone.

Other conventional loans are good options, too. Fannie Mae and Freddie Mac have new products that only require 3%-5% down on a home loan. However, if you don't have the best credit score, this will be reflected in your interest rate. These loans focus more heavily on your credit score, so if you're building better credit, these may not be the right fit for you.

There really is no magic formula when it comes to finding the right loan program. Everyone's situation is unique, and will probably require a different loan program.

If you're looking to find a program to fit your needs, please don't hesitate to contact me. I can do a credit health check-up and find a loan program that will work for you!

Have You Heard of the USDA Home Loan?

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Today I am going to be discussing the USDA Rural Home Loan program, which is a fantastic loan product that hardly anyone seems to be talking about.

This type of loan offers 100% financing, and requires a minimum credit score of 640. You can also include your closing costs in your final loan amount, and that is huge! 

Some of the catches to this loan are that it has more restrictive debt-to-income ratios and not every property is eligible for this loan type. This type of loan is only given to properties who fit certain population density requirements, and is aimed towards low to moderate income households.

However, the income requirements will differ by area, so be sure to speak with me if this type of loan product interests you. I am able to help with USDA Loans nationwide!

View this article for any additional information regarding USDA home loans.

Please don't hesitate to call and speak with me about this unique loan program. If you fit the criteria, it's really a great deal. Even if you don't fit the criteria, I'd still like to speak with you and figure out what type of home loan would be best for you.