Residential Products

USDA Loans

A USDA loan is a government-backed mortgage that helps low- to moderate-income borrowers buy homes in rural and suburban areas.
Benefits
USDA loans offer benefits like:

  • No down payment
  • Competitive interest rates
  • Lower mortgage insurance costs

FHA Loans

Benefits
FHA loans are designed to help low- to moderate-income families become homeowners. They offer:

  • Lower down payments and closing costs
  • Easier credit qualifying
  • Higher debt-to-income ratios (DTIs) than conventional mortgages

VA Loans

A VA loan is a home loan that can help veterans, service members,and their survivors buy, build, improve, or refinance a home.
Benefits
VA loans can offer better terms than traditional loans, such as:

  • No down payment for nearly 90% of VA-backed loans
  • No private mortgage insurance
  • Low-interest rates

Jumbo Loans

A jumbo loan, also known as a jumbo mortgage or non-conforming mortgage, is a loan that exceeds the maximum conventional loan limit set by the Federal Housing Finance Agency (FHFA).

Loan amount
The current limit for a single-family home is $766,550, except in Hawaii, Alaska, and a few other high-cost markets, where the limit is $1,149,825.
Eligibility
Jumbo loans are available for primary residences, second homes, vacation homes, and investment properties.
Terms
Jumbo loans are available in a variety of terms, including fixed-rate and adjustable-rate loans.
Requirements
Jumbo loans typically have:
  • Higher interest rates
  • Stricter underwriting rules
  • Larger down payments
  • Higher closing costs
  • A minimum credit score of around 700

Conventional Loans

A conventional loan is a mortgage that is not insured or guaranteed by the government. They are the most common type of home loan and are available from many different lenders, including banks, credit unions, and online lenders.

Conventional loans have more strict eligibility requirements than government-backed loans. Borrowers typically need a higher credit score, a larger down payment, and a lower debt-to-income ratio (DTI).

Down Payment
The minimum down payment for a conventional loan is 3%, but you'll need to pay private mortgage insurance (PMI) if you put down less than 20%.
Property types
Conventional loans can be used to buy a variety of property types, including primary residences, second homes, and investment properties. However, financing a manufactured home, condo, or two- to four-unit property can be more expensive.
Fees
Conventional loans avoid upfront fees associated with many other loan types, making them potentially cheaper to close.

Some other benefi ts of conventional loans include: Competitive mortgage insurance rates, Higher maximum DTI ratio, Generous loan limits, and Preferred by sellers.

HELOC

A home equity line of credit (HELOC) is a type of loan that allows you to borrow money using your home as collateral.

How it works
You can borrow up to a certain percentage of your home equity, which is the value of your home minus the amount you still owe on your mortgage. You can use the money for a variety of expenses, such as home renovations, paying off high-interest debt, or college.
Interest rates
HELOC interest rates are usually variable and based on the prime rate set by the bank. For example, if your HELOC interest rate is prime + 2% and the prime rate is 6%, your HELOC rate would be 8%. HELOC rates are often lower than other types of loans, such as credit cards.
Repayment
You only pay interest on the amount you borrow, and you can use the credit again as you pay it down. HELOCs typically have fl exible repayment terms.
Comparison to other loans
A HELOC is different from a home equity loan, which is a lump sum of cash with a fi xed interest rate. A HELOC is also different from a cash-out refinance, which involves paying off your existing mortgage with a new, larger mortgage.

Cash-Out Refinance

A cash-out refinance is a mortgage refinancing option that lets you convert home equity into cash . With a cash-out refinance, you take out a larger mortgage loan, use the proceeds to pay off your existing mortgage and receive the remaining funds as a lump sum.