LOAN PROGRAM INFORMATION FOR HOME BUYERS
When a borrower initially comes to us, we are often faced with the question of, “What loan program is best suited for me?” The answer to this question always depends on the individual borrower’s situation, but we generally look at the following characteristics to help identify the best loan program:
- Credit Score and Credit History
- Down Payment
- Occupancy (i.e. primary residence, secondary residence, investment property)
- Loan Amount Needed
- Income
Each loan program has different rules or guidelines that we have to follow when trying to approve your loan application. Our loan officers have the experience to help you navigate the available loan programs and suggest the best loan solution for your specific situation. Below is an overview of the most common loan programs and the characteristics of each.
FHA Loans
DOWN PAYMENT:
MAX LOAN AMOUNT:
UPFRONT MORTGAGE INS.:
MONTHLY MORTGAGE INS.:
1.25% annually* (for 5% or greater down payment 30 Yr Fixed Loans)
.70% annually* (for less than 10% down payment 15 Yr Fixed Loans)
.45% annually (for 10% or greater down payment 15 Yr Fixed Loans)
* – These options have MI for the life of the loan
BANKRUPTCY CHAPTER 7:
BANKRUPTCY CHAPTER 13:
SHORT SALE:
FORECLOSURE:
VA Loans
VA loans allow a veteran to purchase a home without having to come up with a down payment in most cases (jumbo VA loans being the exception). The guidelines allow the veteran to qualify with their spouse, but they cannot have someone that isn’t their spouse on the loan for qualifying purposes.
DOWN PAYMENT:
MAX LOAN AMOUNT:
3.3% of the base loan amount for Subsequent VA buyers (can be financed)
** – Reservists have a slightly higher VA funding fee (see here)
MONTHLY MORTGAGE INS.:
JUMBO VA LOANS:
DERROGATORY CREDIT ITEMS:
COLLECTIONS:
BANKRUPTCY CHAPTER 7:
BANKRUPTCY CHAPTER 13:
SHORT SALE:
FORECLOSURE:
USDA Loans
You can see if your property qualifies by going here: Often the system cannot tell you whether or not a property is in a designated area, and then you have to look at where the property boundaries sit and determine whether or not the property is qualified.
Here is an overview of the USDA loan characteristics:
DOWN PAYMENT:
MAX LOAN AMOUNT:
MONTHLY GUARANTY FEE:
DERROGATORY CREDIT ITEMS:
BANKRUPTCY CHAPTER 7:
BANKRUPTCY CHAPTER 13:
SHORT SALE:
FORECLOSURE:
Conventional Loans
As the current lending environment shifts, there will be a push by Freddie and Fannie to purchase less and less of the conventional loans being originated. For now though, the following guidelines are generally reflective of both agency’s guidelines (although there can be some differences between to two agencies guidelines in specific situations).
Here is a general overview of the guidelines:
DOWN PAYMENT:
MAX LOAN AMOUNT:
MORTGAGE INSURANCE:
Check out our Mortgage Insurance page that describes the types of MI available and the specifics of each option. Mortgage insurance rates change depending on your down payment amount and credit score. There are even differences in certain mortgage insurance rates depending on the MI company that your lender selects.
View our Mortgage Insurance information page here:
BANKRUPTCY CHAPTER 7:
BANKRUPTCY CHAPTER 13:
SHORT SALE:
FORECLOSURE:
3 Most Common Loan Types
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1.
Conventional Loans
Conventional mortgages are best suited for borrowers with 5% or more in down payment and good credit. The guidelines are more restrictive than other loan types, but that generally correlates to better interest rates.
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2.
FHA Loans
These mortgages allow for a 3.5% down payment and the guidelines are generally the least restrictive. FHA loans also continue to be the most common loan type paired with down payment assistance programs.
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3.
VA Loans
VA home loans provide the best financing available for eligible veterans. Depending on the veteran’s eligibility there is no required down payment and there is no monthly mortgage insurance.
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Uptown Mortgage
71 reviews -
Jason and team were knowledgeable, prompt and super easy to work with. They took all of the fear out of finding an understanding the loan and even had everything wrapped up a week before our closing date.
I found Uptown Mortgage on Yelp! and very happy I reached out. I would recommend anyone I know to use their services and will certainly use them again if the time ever comes for additional mortgage needs. -
Jason and his team did a really terrific job for our home purchase financing process. Jason was available weekdays, weekends, and evenings, and whenever we reached out, he got back to us within hours. He was proactive in his outreach and suggestions but also never pushy or overbearing. He knew a ton and could answer every question we could think of asking. I really can't recommend Jason and his team enough - they are great and you'll be in excellent hands if you give them your business.
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I had a great experience with Jason and his team at Uptown mortgage. Starting with my initial email to Jason, which he responded to within 30 minutes, to discussions on which mortgage program was best for my situation, everything was very smooth and the communication was outstanding. I had a somewhat unique situation in that I was using cash from the sale of some restricted stock/options from my company and which the trading window wasn't open until after the final loan objection date. It was crucial that my pre-approval held together, since if something were to happed we would have lost our significant earnest money deposit. Suffice it to say, Jason and team had all of my approval requirements met, so all that I had to do was exercise the options and sell the stock. This final piece all came together within a week of our closing and worked just as expected. I would not hesitate to work with Jason and Uptown Mortgage for any of my mortgage needs in the future.
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Jason Kauffman and his team are nothing short of miraculous. I worked with Jason 4 years ago on my inital home purchase and had a phenomenal experience, so when I started thinking about refinancing and consolidating two mortgages into one, he was the first (and honesly, only) person I called. Just like last time, he clearly laid out my options for me, gave me sound advice, answered my questions quickly and let me know exactly what to expect at each stage of the process - and ultimately took me from inital inquiry to closing in just 4 weeks. The process was completely painless, and I can't thank Jason and the rest of the team at Uptown Mortgage enough for yet another great experience!
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Lana at Uptown Mortgage was tremendously professional with expert and super quick advise. This is the place to get a mortgage!
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