Conforming Mortgages – Standard first mortgage loans designed for the purchase or refinance of your home. Although there are many program variations, most conforming mortgages require a minimum of 5% down; however some are available with as little as 3% down. Rates are typically locked for 60 days.
Conventional Mortgage - Any loan that is not sponsored or insured by a government agency (such as USDA, FHA, or VA). Conventional mortgages typically meet the underlying terms, conditions and funding criteria of Fannie Mae and Freddie Mac. This type of loan is typically provided by a credit union, bank or a finance company. Conventional mortgages may be fixed-rate or adjustable-rate mortgages and rates and fees depend on credit and the amount of equity in the home (down payment in the case of a purchase).
FHA & VA Loans – Perfect for first time home buyers, members with low down payments or those with less than perfect credit. FHA loan highlights include down payments as low as 3.5% on 1-4 unit owner occupied residences, with sellers able to contribute up to 6% toward closing costs and prepayables. VA loans allow for 100% financing of the appraised value. Both programs require the house to be owner occupied.
USDA Rural Housing Loans – Another great option for first time home buyers, the USDA loan allows for 100% financing, with sellers able to contribute up to 5% toward closing costs and prepayables. This is truly a zero down scenario for eligible borrowers. As the name “Rural Housing” implies, some geographic restrictions do apply, and there are income limitations based on household members. Homes must be owner occupied and single family.
20% Down Investor Loans – Allow for low down payment on investment properties. Good credit is required. Single family homes only- 2-4 units require at least 25% down.
Low Down Payment 1st Mortgages – Loan product that allows up to 97% LTV. Primary Residence Purchases Only. Single Family and Condos, with loans up to $417,000. These programs require good credit, and income limits apply.
SONYMA – The State of New York Mortgage Agency (SONYMA) offers mortgage programs to assist first-time homebuyers* with the purchase of a home in New York State. There are a variety of mortgage programs featuring competitive interest rates, low down payment requirements, flexible underwriting guidelines, no prepayment penalties and down payment assistance. Each of these features is designed to make your home purchase more affordable.
There are many other loan programs available!
*First-time Homebuyer is defined by SONYMA as not owning your primary residence during the past three years. The first-time homebuyer requirement is waived for eligible US military veterans and applicants who purchase a home in a Federally-designated Target Area.