Have you walked into a potential home and loved everything about it but then noticed it needed a little TLC or some parts of the house were broken or didn't work like it should? It's more common than you think but luckily, there is a solution for this. A FHA 203(k) standard/ streamline (rehab) loan does not stretch out the repair work over months and you're able to customize your home to your preference. A streamline loan is for smaller repairs and caps at $35,000. There is a minimum of $5,000 in repairs but no cap with 203(k) standard loans. In terms of equity, this can add value to your home and can be better than taking out equity or other forms of loans. This does come with some guidelines however. This must be a primary residence so of course, investment properties will not qualify for this loan. You cannot have bought the property from a relative or someone your acquainted with as well. Feel free to contact me if you have any questions on this particular loan.

A FHA loan is a government backed mortgage insured by the Federal Housing Administration. Because it is insured, lenders are more apt to offer this loan with lower qualifications like credit score and income. It can be tough coming up with 20% down like a conventional loan so we can agree that 3.5% down is a lot better! A "gift" can also be utilized to help with the down payments. There is a low DTI requirement for an FHA loan which can be negotiated in some cases based on compensatory factors. Some downsides to a FHA loan include the MIP which protects the lender from losses should the loan not be satisfied. This is for the life of the loan unless 10% or more is put down on the down payment which then will fall off after 11 years. The cap on a FHA loan is $420,680 for single homes.

A conventional loan is a loan that meets the requirements presented by Fannie Mae and Freddie Mac (conforming loans). Who are they? They are government sponsored enterprises that purchase and sell mortgages to investors. For example, if you buy a home and you make payments to company "X" but then years down the line, you get a notice that company "X" just sold your loan to company "Y", then your mortgage was sold to an investor. This does not change things for you however, just who the payment is sent to. This frees up lender funds so they can obtain more buyers. There is a variety of guidelines for the different conventional loans but overall, it can be a bit more stricter to get qualified for such a loan (i.e. higher credit score, more down payment, etc.). Unlike FHA laons, conventional loans have a higher cap of $647,200 for their loans. Anything over this and we start talking about Jumbo loans, which is a common non-conforming mortgage. A credit score of at least 620 is required to qualify and 3% down

USDA are 0 down payment for rural homebuyers. The USDA guarantees a mortgage, in resemblance to a VA loan or FHA loan. much like a FHA loan, will little or nothing down, you will be stuck with a MIP. There may be income restrictions for this particular loan depending on the region in which you are purchasing. Other qualifications include primary residence, DTI of 29/41, 24 months of income, and decent credit with low collections. Typically, someone would seek a USDA loan with other loans will not work.

VA loans or reserved for those who served or are serving in the armed forces. These loans typically come with 0 down and other very loose guidelines. There is not a set credit score to be approved for a VA loan but some lenders create their own credit guideline. The department of Veteran Affairs (VA) does not make the loan however, it partially guarantees loans that meet their standards. To apply, you would need a certificate of eligibility (COE) and DD214 (for those who no longer serve). There is a minimum service time requirement however surviving spouses and those medically discharged are exempt from this. The VA loan can also be used multiple times as long as the requirements have been fulfilled on the previous loan. Reach out if you have further questions on the VA loan.

Land loans are ideal for homebuyers who want to build a home on a plot of land. This is different from a construction loan because with a construction loan, there are guidelines on when the house must be built (typically almost immediately) versus a land loan which does not have a timeline on the home construction.

There are 3 different types of land loans: Raw Land Loans, Unimproved Land Loans, and Improved Land Loans. Raw land loans is undeveloped land that has not electricity, sewage, or roads built. Unimproved land loans is more developed than raw land loans in the sense that it has some utilities and amenities. Improved land loans has roads, electricity, sewage lines, and other amenities. Each have different qualification in the eyes of lenders including credit qualifications, zoning, surveys, and more. These tend to be riskier and can come with higher rates.

Home Equity Line of Credit (HELOC) is different than your typical home equity loan because you can take out as needed instead of in a single lump sum. This can be used for personal use and not just for the house. A HELOC is a form of revolving line of credit so you can borrow funds and once you pay down your balance, you can continue to pull more out. You only pay interest during the draw term and once the term is over, you can choose to pay the balance in full or pay based on a set schedule. The ability to refinance the equity line is another option as well. No closing costs are typically associated with this. Your home secures the loan an the equity in the home determines the available credit.

Reverse Mortgage allows those 62 and above to choose an adjustment or fixed rate loan and receive funds as a line of credit with growth factors, in a single installment, over time, or a combination of all. Home Equity Conversion Mortgage is a bit different as it is insured by FHA and allows those 62 and above to tap into their equity which is capped at $822,375 whereas the Reverse Mortgage is capped at $4 million.