Your Path to Homeownership

A fixed-rate mortgage offers stability and predictability. Your interest rate and monthly payment remain the same for the entire life of the loan.

Available Terms:

• 30-Year Fixed: Lowest monthly payment, more interest over time
• 20-Year Fixed: Balanced term, build equity faster
• 15-Year Fixed: Higher payment, significant interest savings
• 10-Year Fixed: Fastest equity build, lowest rate

Best For:

• Homeowners planning to stay long-term (7+ years)
• Those who want predictable monthly payments
• Buyers who prefer stability over potentially lower initial rates

Requirements:

• Credit score: 620+ (higher for best rates)
• Debt-to-income ratio: Typically below 45%
• Down payment: 3% - 20% (PMI required under 20%)

ARMs offer a lower initial rate for a fixed period, then adjust based on market rates. Popular options include 5/1, 7/1, and 10/1 ARMs.

How It Works:

• Fixed Period: 5, 7, or 10 years at introductory rate
• Adjustment Period: Rate adjusts annually after fixed period
• Rate Caps: Limits on how much rate can increase (e.g., 2% initial, 5% lifetime)

Best For:

• Buyers who plan to sell or refinance within 5-10 years
• Those who expect income to increase
• Buyers wanting lower initial payments

Risks:

• Payments may increase after fixed period
• Future rates uncertain
• May need to refinance if rates rise significantly

Insured by the Federal Housing Administration, FHA loans make homeownership accessible with lower credit and down payment requirements.

Key Features:

• Down Payment: 3.5% minimum
• Credit Score: As low as 580
• Mortgage Insurance: Upfront MIP (1.75%) + annual MIP
• Loan Limits: Vary by county (typically $472,000 - $1,089,000)

Requirements:

• Primary residence only
• Property must meet FHA standards
• Stable income and employment
• Gift funds allowed for down payment

Best For:

• First-time homebuyers
• Those with limited savings for down payment
• Borrowers with lower credit scores

Available to veterans, active-duty service members, and eligible spouses, VA loans offer exceptional benefits with no down payment required.

Key Benefits:

• 0% down payment - no PMI
• Competitive rates - often lower than conventional
• Limited closing costs - seller can pay most
• No prepayment penalties
• Lifetime benefit - can be used multiple times

Requirements:

• Certificate of Eligibility (COE)
• Meet service requirements
• Funding fee applies (may be waived for disabled veterans)
• Primary residence only

Funding Fee:

• First-time use: 2.15% (0% down)
• Subsequent use: 3.3% (0% down)
• Can be rolled into loan amount

Backed by the U.S. Department of Agriculture, USDA loans help make homeownership possible in eligible rural and suburban areas.

Key Features:

• 0% down payment
• Low mortgage insurance (guarantee fee)
• Flexible credit guidelines
• Competitive fixed rates

Requirements:

• Property must be in eligible rural/suburban area
• Income limits apply (cannot exceed 115% of median)
• Primary residence only
• Credit score typically 640+
• U.S. citizen or permanent resident

Fees:

• Upfront guarantee fee: 1% (can be rolled into loan)
• Annual fee: 0.35% of average loan balance

Jumbo loans exceed conforming loan limits set by Fannie Mae and Freddie Mac, making them ideal for high-value properties.

Key Features:

• Loan Amounts: Above $726,200 (higher in some areas)
• Down Payment: 10% - 20% typically
• Fixed or ARM options available
• Competitive rates for qualified borrowers

Requirements:

• Credit score: 700+ typically
• Debt-to-income ratio: Below 43%
• Larger cash reserves required (6-12 months)
• Full documentation of income/assets
• Appraisal required

Best For:

• Luxury home purchases
• High-cost real estate markets
• Borrowers with strong credit and assets

Pre-qualification is an informal estimate of what you might afford based on self-reported information. Pre-approval is a thorough review of your finances (credit check, income verification) and provides a conditional commitment for a specific loan amount. Sellers take pre-approval much more seriously, and it gives you a clear budget for house hunting.

Most lenders follow the 28/36 rule: your monthly housing costs shouldn't exceed 28% of your gross monthly income, and total debts shouldn't exceed 36%. However, the best way to know is to get pre-approved. We'll review your income, debts, credit, and down payment to determine your personalized borrowing power.

Closing costs typically range from 2% to 5% of the loan amount. They include appraisal fees, title insurance, lender fees, prepaid taxes, and insurance. Some costs may be negotiable with the seller. We provide a detailed Loan Estimate within three days of application so there are no surprises.

Rate locking depends on market conditions and your comfort with risk. If you're happy with today's rates, locking provides certainty. If you think rates might drop, you might wait or ask about float-down options. Your loan officer can help you decide based on market trends and your timeline.

Private Mortgage Insurance (PMI) protects the lender if you default. It's typically required when you put less than 20% down on a conventional loan. PMI can be removed once you reach 20% equity. FHA loans have their own mortgage insurance (MIP), and VA loans have no PMI.