Pros
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Low down payment requirement - 3.5% minimum
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Eligible to be underwritten as low as 580 FICO
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Flexible Underwriting
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Low rates
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Higher qualifying debt ratios
Cons
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Up front mortgage insurance of 1.75% required
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PMI required regardless of down payment amount.
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PMI required for the life of the loan.
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Appraisals must meet HUD appraisal standards.
Pros
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As little as 3% - 5% down payment required (3% if qualified)
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PMI not required if putting down 20% or more.
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Offers products to purchase investment properties and 1-4 unit properties.
Cons
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Credit requirements more rigid.
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Down payment and credit scores can drastically affect rate.
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Debt ratios are much more rigid
Pros
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Zero down payment required
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No monthly mortgage insurance required
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Eligible for underwriting review with as low as 600 FICO
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Flexible Underwriting
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Low Rates
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Higher Qualifying Debt Ratios
Cons
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Only available to eligible enlisted and veteran military members
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Requires up-front VA funding fee
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Requires you to meet specific residual income parameters
Pros
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Zero down payment required
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Very low monthly mortgage insurance required
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Eligible for underwriting review with as low as 620 FICO
Cons
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Maximum income limit requirements
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Can only lend in an eligible "rural" area
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Strict credit and ratio guidelines
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Must be reviewed by USDA prior to underwriting, adding significant time to the process
Pros
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Provides financing options for loans above the conventional loan limit
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Allows financing of primary residence, second homes and investment properties
Cons
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Underwriting guidelines vary by program
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Credit, Debt Ratios, and required reserves are much more rigid
Pros
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Offer solutions for borrowers with a unique situation that may make them ineligible for conventional or government financing
Cons
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Higher rates
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Higher reserve requirements
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Alternative documentation requirements