Types of Loans for a Home Mortgage

John Staples, Loan Officer for Patriot Home Mortgage, has put together some great information on the different types of loans available including the requirements. This is a good, basic introduction.

More information on how to contact John Staples is listed below.

Conventional Loans 

• Minimum FICO of 620 (If loan requires PMI, 680-700 FICO will be required) 
• Debt Ratios of 28/36, must have AUS approval 
• As low as 3% down payment 
• Private Mortgage Insurance (PMI) required for LTV greater than 80% 

FHA Loans 

• Minimum FICO requirement: 580 (620 for most lenders) 
• Down payment as low as 3.5%
• Up Front Mortgage Insurance Premium (UFMIP) is 1.75% 
• Annual mortgage insurance as high as 1.35% 
• Debt Ratios of 31/43 

VA Loans 

• Minimum credit score not imposed by VA but most lenders require 620
• Max Loan amount based on county limits and borrower eligibility 
• 100% financing available if veteran has sufficient entitlement 
• VA Funding Fee (can be financed into loan) 
    o 2.15% First use for Veteran 
    o 2.4% First use for qualifying Reservist 
    o 3.3% subsequent use 

USDA/ Rural Development Loans 

• Areas in Southern Utah include: Parts of Ivins, La Verkin, Toquerville, and Hurricane (Hurricane and Cedar City will be removed on Oct. 1, 2013) 
• Minimum FICO requirement: 640 
• No down payment required
• Debt ratios limited to 37/47, must have GUS approval 
   o County Income limits: http://www.rurdev.usda.gov/HSF-Guar_Income_Limits.html
   o Geographic Eligibility: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee). 

For more information or to contact John Staples:

John Staples | Loan Officer

Patriot Home Mortgage

Direct: (435) 215-1324

Office: (435) 256-8813

Email: john (at) patriothomemortgage (dot) com

Marcia's Input

This is some really great info on the types of loans available out there. The basics anyways.  It is certainly beyond the scope of this blog to go into information like ARM Loans, Balloons etc., so I am not going to go there. If you maintain an interest in some of these alternative loans, then I will recommend you talk with a lender about them.

I will give a plug here for John Staples at Patriot Home Mortgage. He went out of his way to get me this information for the blog. I really appreciate that!! He has done a bang up job for a few of my clients recently. He was able to procure loans for their home purchases in a very quick turn around. He kept up with me and my clients throughout the whole process and we got the loans closed very quickly. Great job!

As a Realtor, I am supposed to give out the names and numbers of a different lenders. If you want to get a list of the lenders some of my clients have used in the past that have received great results, then feel free to email, text or call me and I will furnish you with a list of their names and numbers.