Purchase
There are several types of purchase loan programs available for homebuyers, each with its own features, benefits, and eligibility requirements. Here are some of the most common purchase loan programs:
Purchase Loan Programs
Conventional (Fannie Mae & Freddie Mac) Loans
- 3% Down Payment
- 100% Financing Available with Down Payment Assistance (Restrictions Apply)
- 620 Minimum Credit Score
- Loan Terms from 10 to 30 Years
- Down Payment Can be Gifted
- Monthly Mortgage Insurance
- Not Required with 20% or More Down Payment
- Automatically Cancels at 78% LTV (Loan-to-Value)
- $766,550 Maximum Loan Amount
FHA (Federal Housing Administration) Loans
- 3.50% Down Payment
- 100% Financing Available with Down Payment Assistance (Restrictions Apply)
- 580 Minimum Credit Score
- Loan Terms from 10 to 30 Years
- Down Payment Can be Gifted
- 1.75% Upfront Mortgage Insurance Premium
- Financed into Loan Amount
- 0.55% Monthly Mortgage Insurance
- Remains for Life of Loan (if Down Payment is < 10%)
- $498,257 Maximum Loan Amount (Jefferson County)
FHA 203k (Home Renovation) Loans
- 3.50% Down Payment
- Streamline 203k Loan
- Use for Cosmetic and Common Repairs up to $35,000
- Standard 203k Loan
- Use for Extensive Repairs Over $5,000
- 620 Minimum Credit Score
- Down Payment Can be Gifted
- 1.75% Upfront Mortgage Insurance Premium
- Financed into Loan Amount
- 0.55% Monthly Mortgage Insurance
- Remains for Life of Loan (if Down Payment is < 10%)
- $498,257 Maximum Loan Amount (Jefferson County)
VA (Veterans Affairs) Loans
- Zero Down Payment – 100% Financing
- 580 Minimum Credit Score
- Loan Terms from 10 to 30 Years
- 2.30% Upfront Mortgage Insurance Premium (First-Time Use)
- Financed into Loan Amount
- Will Vary Depending on Down Payment and Subsequent Use
- No Mortgage Insurance
- No Maximum Loan Amount
First-Time Homebuyer Loans
- Down Payment Requirements
- Conventional – 3% (Can be Gifted)
- FHA - 3.50% (Can be Gifted)
- VA - 0% (Zero Down Payment)
- USDA – 0% (Zero Down Payment)
- Down Payment Assistance
- Conventional – Up to 3% (Restrictions Apply)
- FHA – Up to 3.50% (Restrictions Apply)
- Credit Score Requirements
- Conventional – 620+
- FHA – 580+
- VA – 580+
- USDA – 640+
USDA (Rural Development) Loans
- Zero Down Payment – 100% Financing
- 640 Minimum Credit Score
- 1.00% Upfront Mortgage Insurance Premium
- Financed into Loan Amount
- 0.35% Monthly Mortgage Insurance
- Remains for Life of Loan
- Income and Property Areas Restricted
Investment Property Loans
- 20% Down Payment
- 620 Minimum Credit Score
- DSCR (Debt Service Coverage Ratio)
- Qualify Based on Rental Income
One-Time Close Construction Loans
- As Low as 5% Down Payment
- 700 Minimum Credit Score
- Construction and Permanent Financing in One Mortgage
- Interest Only Payments During Construction
- $766,550 Maximum Loan Amount
Jumbo Loans
- As Low as 10% Down Payment
- 680 Minimum Credit Score
- Loan Terms from 10 to 30 Years
- No Mortgage Insurance Option
- Loan Amounts Over $766,550
Physician (Doctor) Loans
- Zero Down Payment – 100% Financing
- 720 Minimum Credit Score
- Credit Scores Down to 680 Allowable with Reduced LTV (Loan-to-Value)
- Loan Terms of 15 and 30 Years
- No Mortgage Insurance
- $1,000,000 Maximum Loan Amount
- Loan Amounts Up to $2,000,000 Available with Reduced LTV
Each purchase loan program has its own unique features and requirements, so it's important for homebuyers to research and compare their options carefully to find the loan that best suits their financial needs and goals.