Purchase Programs
Federal Housing Administration (FHA)
An FHA loan is a mortgage that’s insured by the Federal Housing Administration and is appealing to first-time home-buyers because of flexible down payment and credit score requirements.
Program Features:
- Low closing costs
- The money for the down payment can be a gift
- Parent or family member can help to income qualify
- 1 to 4 unit property as long as it’s owner occupied
- OK 2 years after a bankruptcy
- OK 3 years after a foreclosure or short sale
- A minimum down payment of 3.5% with a credit score of 580 or higher
- 10% down payment with a credit score between 500 and 579
Veterans Administration (VA Loan)
This is a great loan for anyone with military service including the reserves.
Program Features:
- No down payment
- No mortgage insurance
- Higher debt to income which means veterans with moderate incomes are often eligible
- 1-4 unit property as long as 1 unit is owner occupied
- No 2nd homes or investment properties
Fixed Rate
A fixed-rate mortgage is a mortgage loan that has a fixed interest rate for the entire term of the loan.
Program Features:
- Interest rate that remains the same throughout the life of the loan
- Monthly payments remain constant over the life of the loan
- 1st Eagle Mortgage offers fixed rate mortgages with terms of from 8 to 30 years
- 500 minimum credit score for FHA and VA
- 620 minimum credit score for conventional mortgages (up to $453,099)
- 660 minimum credit score for Jumbo mortgages (over $453,100)
Adjustable
Adjustable Rate Mortgages (ARMs) are loans where the interest rate is fixed for a certain number of years (such as 5, 7, or 10) and then recalculated on a yearly basis depending on market rates. After the fixed period, monthly payments may be higher or lower depending upon the current interest rate.
Program Features:
- ARMs generally have lower rates than the traditional fixed rate mortgages
- They make sense if you’re planning to move in 7 years or less
- 500 minimum credit score for FHA and VA
- 620 minimum credit score for conventional mortgages (up to $453,099)
- 660 minimum credit score for Jumbo mortgages (over $453,100)
Jumbo
A Jumbo, or non-conforming loan, refers to any home loan that is greater than $453,100. Jumbo loans have similar features to fixed and adjustable rate programs. The biggest difference between a jumbo loan and a traditional loan is the interest rate – since jumbos are not guaranteed by Fannie Mae or Freddie Mac, they are considered a higher risk for lenders, and they may have a higher rate.
Program Features:
- Generally a credit score of 700 is required to get the best rates