Conventional home loans require a minimum of 3% down payment, as long as one of the borrowers applying is a first-time home buyer and has a good FICO score of 680 or better. Anything lower than 20% down payment will require PMI (private mortgage insurance). Your credit score must be good, ideally with a FICO score of 660 or higher, and have few derogatory marks, though there are cases where the score could be lower. Maximum loan limits are imposed by each county.
If you have credit or down payment challenges, an FHA loan may be a possible solution. Some of the benefits to FHA loans are that they allow non-occupant borrowers to co-sign on the loan, and down payment gifts of up to 100%. Minimum down payments of 3.5% with a FICO score of 580 or better are possible. Borrowers with a FICO score between 500 - 579 may be able to qualify for these loans with a 10% down payment.
VA loans are available to anyone who meets the qualification requirements. These loans offer 100% financing within the county loan limits. Veterans who have served 90 consecutive days on active duty during wartime, or 181 days on active duty during peacetime, or served 6 years in the Reserves or National Guard, or be the surviving spouse of a service member who died while serving or due to an injury during service.
For loans in which the property and loan value exceed the local county loan limits, jumbo is the way to go. For example, Los Angeles county 2022 limit is $970,800 for a single family home. This means that any loan amount over $970,800 will require a Jumbo loan. We offer Jumbo loans up to $3,000,000 and Super Jumbo loans up to $10,000,000. Using these alternatives you can achieve your goals.
At ActionOne, we work carefully and diligently in order to provide our clients with the financing solutions they deserve. There’s nothing more important than client satisfaction, which is why our promise is to find the best mortgage for each client based on their financial situation and property preferences. Read more about our products that can make mortgages fast and easy.
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