LOAN OPTIONS | Murphy And Team

Requirements:
- Credit Score: Typically 620 or higher.
- Down Payment: Typically 5-20% of the home’s purchase price.
- Debt-to-Income (DTI): Usually must be below 43%.
- Income: Stable income history is required.
Benefits:
- Stability: Interest rate remains the same throughout the loan term (e.g., 15, 20, 30 years).
- Predictable Payments: Monthly payments are predictable, which helps with long-term financial planning.
- No Prepayment Penalties: You can pay off the loan early without incurring penalties

Requirements:
- Credit Score: Typically 620 or higher.
- Down Payment: Typically 5-20% of the home’s purchase price.
- DTI: Usually must be below 43%.
Benefits:
- Lower Initial Payments: The interest rate is often lower during the initial fixed period (e.g., 5 years), which means lower payments in the early years.
- Potential Savings: If interest rates remain low, you may benefit from a lower rate after the initial fixed period.
- Flexibility: Can be ideal for buyers who plan to sell or refinance before the rate adjusts.

Requirements:
- Credit Score: Typically 700 or higher.
- Down Payment: Often requires a larger down payment, generally 10-20%.
- DTI: Higher than conventional loans, but typically below 43%.
- Loan Amount: Exceeds the conforming loan limits set by the FHFA (varies by location).
Benefits:
- For High-Value Properties: Ideal for purchasing luxury homes or homes that exceed conventional loan limits.
- Flexible Loan Terms: Often offers terms similar to conventional loans, but with higher limits.
- Lower Interest Rates: In some cases, jumbo loans may offer competitive interest rates compared to other types.

Requirements:
- Credit Score: Typically 620 or higher.
- Down Payment: Typically 5-20%.
- DTI: Usually below 43%.
- Loan Amount: Must fall within the conforming loan limits set by Fannie Mae or Freddie Mac (varies by county).
Benefits:
- Easier Qualification: Fannie Mae or Freddie Mac guidelines can make it easier for borrowers to qualify compared to non-conforming loans.
- Lower Interest Rates: Typically, interest rates are lower for conforming loans because they meet the criteria for purchase by government-sponsored entities (GSEs).

Requirements:
- Credit Score: 580 or higher for a 3.5% down payment (500-579 for 10% down).
- Down Payment: As low as 3.5% for borrowers with a credit score of 580 or higher.
- DTI: Typically below 43%.
- Primary Residence: Must be for a primary residence.
Benefits:
- Low Down Payment: Allows for a lower down payment compared to conventional loans.
- More Lenient Credit Requirements: Easier qualification for borrowers with lower credit scores.
- Government Insured: Provides more security for lenders, making it easier for borrowers to get approved.

Requirements:
- Eligibility: Available to veterans, active-duty service members, and eligible surviving spouses.
- Certificate of Eligibility (COE): Required to verify service status.
- Down Payment: Often no down payment required.
- DTI: Typically below 41% (but can be higher in some cases).
Benefits:
- No Down Payment: VA loans typically do not require a down payment.
- No Mortgage Insurance: Unlike conventional loans, VA loans do not require private mortgage insurance (PMI).
- Lower Interest Rates: VA loans often have lower interest rates compared to conventional loans.
- Flexible Qualification: More lenient credit score and income requirements.

Requirements:
- Location: Property must be in a USDA-approved rural area.
- Income: Household income must not exceed 115% of the area’s median income.
- Credit Score: Typically requires a credit score of at least 640.
- Down Payment: No down payment required.
Benefits:
- No Down Payment: USDA loans are available with no down payment for eligible buyers.
- Lower Interest Rates: Competitive interest rates, often lower than conventional loan rates.
- Lower Mortgage Insurance: Mortgage insurance costs are lower than conventional loans.

Requirements:
- Income: Typically for low- to moderate-income borrowers.
- Down Payment: As low as 3%.
- Credit Score: Minimum of 620 (depending on the program).
Benefits:
- Low Down Payment: Allows for a down payment as low as 3%.
- Flexible Income Limits: Income limits are based on the area median income (AMI), allowing for broader eligibility.
- Reduced Mortgage Insurance: Lower mortgage insurance costs than traditional loans.

Requirements:
- Income: Low- to moderate-income borrowers.
- Down Payment: As low as 3%.
- Credit Score: Typically requires a minimum of 620.
Benefits:
- Affordable: Lower down payments and reduced mortgage insurance costs.
- Designed for First-Time Buyers: Specifically aimed at first-time buyers with limited income.

Requirements:
- Credit Score: Typically requires a credit score of 580 or higher.
- Down Payment: As low as 3.5% (depending on credit score).
- Property Type: Property must be at least a year old.
Benefits:
- Renovation Financing: Combines home purchase and renovation costs into one loan.
- Flexible for Home Improvements: Can be used for a variety of home improvements and repairs.

Requirements:
- Credit Score: Typically requires a credit score of 620 or higher.
- Down Payment: At least 5% (varies based on credit score).
- Property Type: Single-family or 2-4 unit homes.
Benefits:
- Purchase and Renovation in One Loan: Allows financing for home purchase and renovation.
- Flexible Renovations: Covers a wide variety of improvements, from basic updates to major structural changes.

Requirements:
- Age: Homeowner must be 62 years or older.
- Home Equity: Must have significant equity in the home.
- Primary Residence: Property must be the borrower’s primary residence.
Benefits:
- No Monthly Payments: Borrowers do not make monthly payments; loan is repaid when the homeowner sells the home, moves out, or passes away.
- Access to Home Equity: Converts home equity into cash to help cover living expenses in retirement.

Requirements:
- Property Type: Typically for investment properties or fix-and-flip projects.
- Down Payment: Often requires 20-30% down.
- Credit Score: More lenient; often depends on the property value.
Benefits:
- Fast Funding: Often provides quick access to funding, making it ideal for time-sensitive projects.
- Less Stringent Qualification: Based more on property value than creditworthiness.

Requirements:
- Property Type: For purchasing or refinancing income-producing properties (e.g., apartments, office buildings).
- Down Payment: Typically requires 20-30%.
- Credit Score: Minimum of 650-700.
Benefits:
- Large Loan Amounts: Designed for significant property investments.
- Longer Terms: Often offers terms of 10-30 years.

Requirements:
- Income: For borrowers with non-traditional income sources (e.g., self-employed).
- Credit Score: Varies; often requires a minimum of 620.
- Down Payment: Typically 10-20%.
Benefits:
- Flexible Qualification: Suitable for individuals with non-traditional financial situations.
- Varied Terms: Lenders offer flexible terms tailored to the borrower’s unique circumstances.