Conventional loans are defined as meeting the guidelines set forth by Fannie Mae or Freddie Mac. The loans require a minimum down payment of 3%. These loans typically offer reduced borrowing costs for clients with higher credit profiles and come with a number of mortgage insurance options for borrowers putting down less than 20%.
FHA loans are defined as loans meeting the guidelines of and being insured by the FHA, a branch of the U.S. Department of Housing and Urban Development. A minimum down payment of 3.5% is required. The FHA guidelines offer greater flexibility in some areas and therefore broaden the availability of home financing to morebuyers.
There are several reasons you might consider refinancing your mortgage. You could lower your monthly payment, get a lower interest rate, consolidate your debt, convert from an ARM to a fixed-rate loan, or eliminate private mortgage insurance. Speak with a Monarch Mortgage loan officer to determine if refinancing your current mortgage can help you meet your goals.
USDA loans are defined as loans meeting the guidelines of and being insured by the U.S. Department of Agriculture. There is no down payment required on USDA loans but they are subject to geographic and maximum income limitations.
VA loans are defined as loans meeting the guidelines of and being insured by the Department of Veterans Affairs. There is no down payment required for most VA loans. These loans do require eligibility from the VA which requires the buyer being a Veteran or Active Duty military. The guidelines promote flexibility and remove many of the typical burdens of mortgage qualification for eligible buyers.
A Home Equity Conversion Mortgage is an FHA Federally Insured loan that allows homeowners age 62 and over to access a portion of the equity in their home without ever having to make another mortgage payment.