01/21/2025
Exploring the Different Types of Mortgages: Which One is Right for You?
1️⃣ Conventional Loans
💰 Loan Amount: Up to $726,200 (higher in high-cost areas).
✅ Requirements:
- Minimum credit score: 620+
- Down payment: Typically 5%-20%
- Debt-to-income (DTI) ratio: Generally 43% or lower
2️⃣ FHA Loans
💰 Loan Amount: Varies by county; maximums range from $472,030 to $1,089,300 in high-cost areas.
✅ Requirements:
- Minimum credit score: 500 (with 10% down) or 580 (with 3.5% down)
- Down payment: As low as 3.5%
- DTI ratio: Up to 50% in some cases
3️⃣ USDA Loans
💰 Loan Amount: No official cap, but limits depend on income and property location.
✅ Requirements:
- Income: Must meet local income limits (typically low-to-moderate income)
- Property: Located in eligible rural/suburban areas
- Credit score: 640+ preferred
- Down payment: 0% (no down payment required)
4️⃣ VA Loans
💰 Loan Amount: No official limit (as long as eligibility requirements are met).
✅ Requirements:
- Military service: Active duty, veteran, or eligible spouse
- Credit score: 620+ (varies by lender)
- Down payment: 0%
- Funding fee: Varies, but waived for some disabled veterans
💡 Pro Tip: Your loan amount and eligibility depend on factors like your credit score, income, and the property’s value. Work with a lender to get pre-qualified and know exactly what you can afford.
🏡 Ready to explore your options? Let’s find the right loan for your dream home!
