Old House New House Living

With all the changes in Financing, it is hard to know what the requirments really are.  Listed below are the basics for each loan type to provide a framework and point of reference when talking to a lender. Please talk to your loan officer about specific requirments and programs as these vary between lenders.

FHA – requires at least a 620 credit score and 3.5% down. These loans do have mortgage insurance, which is about $55 per every $100,000 borrower. This loan is best for those with under a 700 credit score and/or those who do not wish to make a large down payment. There are some lenders that are still providing FHA loans to borrowers below this threshold but my experience is that the lowest score is 585.

95% NO Mortgage Insurance – This is a type of conventional loan that will require 5% down. There is no mortgage insurance, but the rates are generally about 0.5% points higher than a regular Conventional or FHA loan. You must have a 700+ credit score for this type of mortgage. Very few banks offer this kind of financing.

80/10 – This is a type of conventional loan that will require 10% down. There is no mortgage insurance and the rates are on par with regular conventional rates. You have 80% of your homes value on one loan, and 10% of your homes value on a second loan. A 680+ credit score is needed for this kind of mortgage. Very few banks offer this kind of financing.

20% down Conventional – most straight forward kind of mortgage…20% (or more) down leaving the balance on one loan. Lenders require a 680+ credit score for this type of mortgage.

Additionally, there are still down payment assistance programs available through the American Dream Initiative with the City of Cincinnati and some lenders have special grant programs.

Finally, lets not forget the Home Buyer Tax Credit being offered.

Any questions, feel free to call me.