Which is the Best Mortgage Option for Me?
Low Down Payment Mortgage Options
If you have little money for a down payment one of these would probably be the best mortgage option for you:
USDA – If you make less than $75,000 per year and you are willing to restrict the locations in Ocala that you look for a home, USDA may be a good mortgage option for you.
FHA – This loan requires that you put at least 3.5% down. You can get a gift for the down payment and not use any of your own money. There are no restrictions on location or income. Additionally, you do not have to be a 1st time home buyer.
VA – You must be a vet to take advantage of a VA loan. There are some extra hoops to jump through, but this is the best mortgage option if you are a vet with little or no money down.
SHIP – Up to a $40,000 forgivable loan with $0 payment provided by City and County governments. Funds can be used for down payment and/or closing costs. Program is dependent upon funding availability. Income and credit restrictions may apply.
HomeReady / HomePossible – Conventional program requiring only 3% down.
You Want to Refinance a Mortgage that is Upside Down
HARP – This is your best option if your current mortgage is a conventional mortgage.
FHA Streamline – If you currently have an FHA mortgage and you just want to reduce your interest rate and payment, FHA Streamline is what you are looking for.
VA Streamline – This is your best option if your current mortgage is a VA mortgage . In most cases, you can refinance with no out of pocket costs and without an appraisal.
USDA Streamline – For customers with an outstanding USDA loan, this is a way to refinance to a lower rate with limited paperwork and closings costs.
The Home Needs Repair or Remodeling
FHA 203k Loan: This is a renovation loan that allows you to purchase the home and get up to $31,500 for home repair or remodeling. If you’ve found the perfect home but it needs work – this may be the best mortgage option for you.
HomeStyle Conventional Renovation Loan – This conventional loan allows extra money for remodeling or improvements at initial home purchase. Qualifying based on debt ratios and credit. This program will allow for home additions and pool installations.
You Have Collections and Other Minor Credit Issues
FHA – FHA still requires a 580 credit score and has restrictions on the type and number of credit issues, but will still be more forgiving than other programs.
USDA – This program can be forgiving on credit issues over 1 year old.
VA – VA Loans can allow for lower credit scores in certain instances. Consult a mortgage planner if you have VA Benefits.
Non-QM Loans – These are loans that allow for credit scores as low as 500 with higher down payments. Consult a mortgage planner.
Reverse – You must be 62 years of age or older. There are no credit requirements for a reverse mortgage other than potential liens on the property. You can even buy out of a Chapter 13 Bankruptcy with a reverse mortgage. If you are looking to purchase and have a sizable down payment, a reverse mortgage may be the best mortgage option for you. Check out the FACTS before you decide.
You Have a Sizable Down Payment and Want a Good Rate and a Low Payment
Conventional – If you have good credit this may be the best mortgage option for you.
Reverse – If you are 62 years of age or older, you can get very good rates and NO monthly mortgage payment with a Reverse Mortgage. If you are looking to purchase and have a sizable down payment, a reverse mortgage may be the best mortgage option for you. Check out the FACTS before you decide.
Find out why the best rate quote isn’t always the best deal.
Mortgage Amount Over $510,400
Jumbo – This is your best mortgage option for loan amounts over $510,400
We realize this list is not exhaustive – it is meant to be a guide to programs that might work for you. If you have a question or need direction that is not addressed here, you can schedule an appointment with one of our mortgage planners, or contact us with your questions.