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| Conventional and Jumbo |
| FHA |
| VA |
| Commercial |
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Conventional and Jumbo
Conventional loans are secured by government sponsored entities such as Fannie Mae and Freddie Mac. Conventional loans require a strong credit and employment history. Interest rates on conventional loans tend to be most competitive.
Loans which are larger than the limits set by Fannie Mae and Freddie Mac are called jumbo loans. Because they are not funded by Fannie Mae and Freddie Mac, they carry a higher interest rate and some additional underwriting requirements.
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FHA
FHA's mortgage insurance programs help low and moderate income families become homeowners by lowering some of the costs of their mortgage loans. Credit requirements on FHA loans tend to be less strict than conventional financing, yet borrowers still benefit with a lower down payment and lower interest rate.
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VA
VA loans are available to those who qualify by military service. Typically VA loans require the borrower to have a strong credit history, although this program has the ability to make exceptions in certain situations. This program allows 100% financing with no monthly mortgage insurance, while offering lower interest rates.
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Commercial
Commercial financing is underwritten on a case by case basis. Every loan application is unique and evaluated on its own merits.
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Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $8,340. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors.
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