• Conventional Conforming

    • Guidelines set my Fannie Mae and Freddie Mac
    • Private mortgage insurance, or PMI, is required for any conventional loan with less than a 20% down payment.
    • Minimum 3% down payment required
    • Ability for non-occupant co-borrowers (parents, brother, sister, BFF, etc) 
    • Gift funds allowed but some restrictions may apply 
    • Minimum credit score 620

    Jumbo

    aka Conventional Non-Conforming

    • Down payment requirements starting at 10% down (with no Mortgage Insurance required)
    • Any loan amount greater than $484,350.00
    • Underwriting guidelines are more stringent than conforming loans
    • Stricter debt to income ratios
    • Higher credit score requirements vs. conforming loans

    FHA

    • Government backed loan program geared to help designed for low-to-moderate income borrowers who are unable to make a large down payment get into a home.  
    • Less wait time after a major derogatory credit event (such as bankruptcy or foreclosure) vs. Conventional loan program.
    • All funds to close can be in the form of a gift (restricts WHO can give the gift so let's talk)
    • More lenient credit and debit ratios
    • NOT required to be a first-time homebuyer (common myth)
    • 3.5% down payment required
    • 620 minimum credit score
    • The current maximum loan amount for an FHA loan in the Greater Austin area is $389,850 for a SFR.

     

    VA

    Designed for those who serve, VA home loans provide low-cost financing for veterans of the U.S. armed forces. They are guaranteed by the U.S. Veterans Department and

    • Does not require a down payment (though closing costs and prepaid expenses are required)
    • Veterans with a 10% or greater service-related disability are exempt from the funding fee
    • Less wait time after a major derogatory credit event (such as bankruptcy or foreclosure) vs. Conventional loan program.
    • All funds to close can be in the form of a gift (restricts WHO can give the gift so let's talk)
    • The current maximum loan amount is $484,350.00, with zero down, full eligibility. Higher loan amounts are allowed but will require a down payment.
    • Most lenient credit and debit ratios
    • Service requirements (listed here)
    • 620 minimum credit score
    • NO mortgage insurance

    USDA

    • Zero down payment mortgage that eligible homebuyers in rural and suburban areas which are backed by the United States Department of Agriculture (USDA).
    • Eligible to roll in all closing costs into loan up to the appraised value (meaning house has to appraise higher than the contract sales price)
    • All funds to close can be in the form of a gift (restricts WHO can give the gift so let's talk)
    • Income requirements (limits)
    • Stricter debt to income ratios than Conv, FHA or VA loans
    • Property must be in an "eligible" area (map here)
    • Lower monthly mortgage insurance vs Conv or FHA
    • 620 minimum credit score

     

    DPA- Down Payment Assistance

    • Can be used in conjunction with Conforming, FHA, VA and USDA loans
    • Some DPA is not required to be repaid
    • Income limits apply and vary based on program
    • Maximum sales price apply and vary based on program
    • Not all programs require buyer to be first-time homebuyer
    • We offer over 5 DPA programs including:  TDHCA, TSHAC, SETH
    • Each DPA program has its own set of guides and restrictions
    • I will always give you a DPA option, if you meet the guidelines, for your review
    • Interest rates for DPA are generally higher than standard rate for the loan program (conforming, FHA, VA or USDA) 

    Investor Loans

    • Minimum down payment of 15% required (but interest rate is much better with 20% down)
    • Maximum of 10 *FINANCED* properties owned by buyer
    • Loan must close in buyer's name (not business name if applicable) 
    • Gift funds not allowed for down payment
    • Conforming guidelines apply

    Condo Financing

    Condos are all the rage in Austin but obtaining a mortgage on a condo is a little different than a single family. Find out why and more info by checking out my page on condo financing!

All Posts
×