A conventional mortgage refers to any housing loan that’s not insured or guaranteed by the Federal Government. Conventional loans offer competitive interest rates, and documentation and good credit are required to qualify. There are also programs available for as little as 3% down payment. But, if your down payment for a purchase, or home equity loan in the case of a refinance, is less than 20%, you may be required to pay private mortgage insurance (PMI).
An FHA loan is a mortgage that’s insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults. FHA-insured loans require very little cash to close, and provide more flexibility in calculating household income and payment ratios.
Reserved for active duty military, eligible veterans and reserves or their surviving spouses, VA home mortgage loans are backed by the Veterans Administration and offer those who qualify a federally guaranteed home loan that requires little to no down payment.
Fixed and Adjustable Rates
At Royalty Elite, we offer both fixed-rate and adjustable rate mortgages (ARM). With a fixed-rate mortgage, your interest rate will not change. But, the interest rate charged to you on an adjustable-rate loan will change depending on the loan terms and rate adjustment caps.
Jumbo and Super Jumbo
Jumbo and Super Jumbo loan programs are also considered conventional loans, but offer financing for loan amounts that are greater than the standard limits.
Reserved for those 62 years of age or older, a Reverse Mortgage allows homeowners to convert part of their home’s equity into cash without having to sell their home or pay additional monthly bills. This type of mortgage loan program is intended to help those on a fixed-income stay in their home. Borrowers must live in the home as their primary residence, pay property taxes, homeowner’s insurance, HOA Association dues (if applicable) and maintain the home according to FHA requirements, otherwise the loan becomes due and payable.
A United States Department of Agriculture (USDA) home loan is a zero-down payment, lower interest rate mortgage, for eligible rural and suburban properties.² Issued through the USDA loan program, USDA financing is designed to improve the economy and quality of life in rural America.
Second Homes or Investment Properties
For those who qualify, Royalty Elite offers a range of home loan options for second homes or investment properties. Though people may use these terms interchangeably, second homes and investment properties are not the same and each have distinct lending requirements and guidelines. Learn more about second homes and investment properties.