Mortgage Calculator
Conventional
A conventional loan is a type of mortgage loan that is not insured or guaranteed by the government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower.
PROS:
As little as 3% down payment
No PMI with 20% down
Can be used for 2nd home and investment properties
PMI is automatically dropped at 78% loan to value
CONS:
Higher rates for lower credit scores
Requires a 620+ credit score
Lower debt to income ratios
VA
A VA loan is a mortgage loan that’s backed by the Department of Veterans Affairs for those who have served or are presently serving in the U.S. military. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms
PROS:
0% down required
No PMI
Lower credit scores
Higher debt to income allowed
CONS:
Primary residence only
Subject to the VA funding fee
Must be active duty, reservist or military veteran
FHA
An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). Designed for low-to-moderate-income borrowers, FHA loans require a lower minimum down payments and credit scores than many conventional loans.
PROS:
Low down payment – 3.5%
Non-owner occupant co-signer allowed
Better rates for lower scores
Minimum 580 score
Chapter 13 Bankruptcy OK
CONS:
Primary residence only
Limited maximum loan amount
Upfront PMI of 1.75% required
Many condos not approved
PMI required
USDA
USDA loans are zero-down-payment, low interest rate mortgages. The United States Department of Agriculture guarantees the loans. They help very low-to-moderate income buyers become homeowners.
PROS:
No down payment
Use equity to finance closing costs
Lower credit scores down to 580
CONS:
Restricted to rural areas
Maximum income limits
PMI required
Single family residences only
Jumbo
A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac.
PROS:
Borrow more money to buy a home
Competitive rates with other conventional loans
CONS:
Minimum 10% down
Max 45% DTI
Typically higher scores above 700 required
Reverse Mortgage
A reverse mortgage is a type of loan that allows homeowners ages 62 and older, typically who’ve paid off their mortgage, to borrow part of their home’s equity as tax-free income
PROS:
Access equity from your property
Make no mortgage payment payment
Retain ownership of your home. You never have to move
Money from the reverse mortgage is tax free
No claim against heirs
CONS:
A fixed interest rate = Less cash out
Closing costs can be expensive
You can be foreclosed on if you fail to pay property taxes, insurance, HOA dues, etc