01/11/2022
Which loan do you qualify for? What are the differences between each?
Conventional 🏡
Pros:
🎈Down payment as low as 3%
🎈No PMI if you put down 20%
🎈PMI canceled after loan to value reaches 78%
🎈Can be used for 2nd Property or Investment Units
Cons :
❗️Lower Credit Scores means higher interest rates and need more competitive scores
❗️DTI limits
❗️2 months Cash Reserves on top of down payment.
FHA 🏛
🎈 Down payment as low as 3.5%
🎈More lenient about Credit Scores
🎈Better Interest Rates for low credit borrowers than conventional
🎈Lower Mortgage Insurance
Cons:
❗️Mortgage insurance doesn’t cancel
❗️condos not approved
❗️Must be owner occupied
❗️loan limits based on Region
VA 🏭
Pros:
🎈No down payment required
🎈No PMI
🎈Easier credit standards
🎈 No prepayment penalty’s
Cons:
❗️Have to be active duty, reservists or mil vet
❗️slower closing
❗️Funding Fee
❗️has to be primary residence
Thanks for watching 😀
Contact me for your real estate needs
Paige Cooley
Licensed Real Estate Salesperson 🏡
Keller Williams
716-578-2922
[email protected]