Any sort of home buyer’s loan that is not given or secured by a government agency is referred to as a conventional mortgage or conventional loan. Private lenders, such as banks, credit unions, and mortgage companies, offer regular mortgages instead.

• Require a minimum of a 3% down payment.
• In traditional loans, credit scores, loan-to-value ratios, debt-to-income ratios, and down payments are all subject to stringent requirements.
• Your credit score and the length of your loan decides the interest rate.

The Federal Housing Administration (FHA) insures mortgages that are backed by the government. FHA home loans are popular among first-time buyers because they require lower credit scores and down payments than many conventional loans. Although the loans are insured by the government, they are only available from FHA-approved lenders.

• FHA loans are for first-time buyers or with modest salaries and is flexible for other buyers too
• Easier requirements for income and credit score
• Minimum down payment 3.5% and lower closing costs
• Private mortgage insurance may be cheaper than mortgage insurance (PMI)

For eligible rural homebuyers, a USDA house loan requires no down payment. USDA loans are granted by the United States Department of Agriculture under the USDA loan program, often known as the USDA Rural Development Guaranteed Housing Loan Program.

• Special funding for USDA-designated locations
• Credit guidelines and qualifying requirements are open
• The rate of interest is lower than the amount of the market
• Closing costs can be paid by the seller or included into the loan
• Private mortgage insurance rates are lower each month (PMI)
• The ability to afford for PMI in advance

Servicemembers, Veterans, and qualifying surviving spouses will get support from the VA to become homeowners. AQU Lending offers a home loan guaranty benefit and other housing-related services as part of our mission to assist you buy, build, repair or retain a house for your own personal occupancy as part of our commitment to serve you.

• VA home loans are available from private lenders like as banks and mortgage companies.
• You must have good credit, a sufficient income, and a certified Certificate of Eligibility to qualify.
• With no down payment and no mortgage insurance, you can borrow up to 100% of your home’s value.
• The IRRRL allows veterans to refinance their loans (streamline refinance).

A jumbo mortgage is a type of loan that is higher than conventional. It can be used for permanent houses or investment properties.

The maximum size of a jumbo loan differs by lender and geographical area.

• Ideal for self-employed buyers
• Suitable for principal residences, second houses, and investment properties
• No need for mortgage insurance
• Jumbo cash out refinances are available with a loan-to-value ratio of up to 95% and no mortgage insurance.

A reverse mortgage is a type of loan that allows a homeowner with a lot of equity in their home to borrow against it and receive funds in the form of a lump sum, a fixed monthly payment, or a line of credit. A reverse mortgage, unlike a forward mortgage, which is used to purchase a home, does not require the homeowner to make any loan payments.

• The borrower remains the owner of the house.
• The borrower receives funds payable when the final borrower leaves with a Reverse Mortgage.
• The property must be used as the borrower’s primary residence.