A conventional mortgage is a type of home loan that is not offered or secured by a government entity. There are fixed rate and adjust- able-rate mortgages, most buyers prefer a fixed mortgage due to the principal and interest payments staying consistent throughout the life of the loan. However, payments may periodically change if your Property Taxes and Homeowner's Insurance are paid through an Escrow Account. With a Conventional mortgage you purchase a home with as little as a 5% down payment, but if you make a down payment of less than 20% you will be required to pay for Private Mortgage Insurance (PMI) until your loan is less than 80% of the value of your home.

FHA loans are backed by the Federal Government giving them com- petitive interest rates. FHA loans are popular for younger borrower's because they have less stringent credit requirements and require smaller down payments as low as 3.5%. For FHA loans financial re- serves beyond the immediate closing costs aren't required, and bor- rower's can also apply for this loan with a non-occupant co-borrow- er, such as a parent, to help offset any credit qualification issues. These loans are also more forgiving of bankruptcies and foreclo- sures only requiring a two year wait period following a discharge. However, appraisals and accounting of income are going to be more strict and the loan limits are lower than those of Conventional Mortgages. FHA loans can not be used on second or investment homes and a spouse's debt can work against you, even if the spouse isn't co-signing.

The major benefits of FHA loans are that they are easy to refinance, no cash reserve is required, down payments may be gifted, compet- itive interest rates, down payments as low as 3.5%, less strict under- writing requirements, and the allowance of a non-occupant co-bor- rower to co-sign.

VA Home loans are eligible for veterans and their families, and these are incredible financing options for those who have served our country. A huge benefit to VA loans is that in most scenarios a down payment isn't required. Another great benefit is that interest rates and annual percentage rates (APRs) tend to be lower for these loans than most other loan programs. There are still factors that can affect your interest rate, such as credit score, value of the home, and a down payment if one is made.

Who is Eligible for a VA Loan

• Active-Duty Personnel of the Air Force, Army, Navy, and Marines

• Veterans of the Air Force, Army, Navy, and Marines

• Certain Reservists and National Guard Members

• Surviving spouses of active-duty personnel who are

o Missing In Action
o Prisoner of War

How to Confirm your VA Home Loan Benefits

• A VA approved home loan lender can confirm your VA benefits status, or you can also contact the VA Eligibility Center at 1-877-827-3702 to request a Certificate of Eligibility (COE)

• Your VA loan benefits can be used more than once, you must meet the VA's requirements and receive a new VA loan entitlement by either selling your current home or paying off the existing amount of your current VA loan

  VA Home Loan Types

• Standard VA loan offers up to 100% financing, there is no monthly mortgage insurance or private mortgage insurance required. However, in some cases you may need to put more down to qualify for a specific monthly payment

• Condos that meet VA approval may qualify for VA financing