Home Buying

Common Loan Options of Home Purchase

May 3, 2020July 3, 2020

There are several major types of home loans. A good loan officer will be able to help you explore all the options. Here are some of the more common options that I see regularly in my work.

Loan Type	Down Payment	Important Information
VA	0%	For military and eligible borrowers only. There is a Funding Fee that is added to your loan (which can be waived if you’re Disabled). Subject to maximum loan amount depending on location and existing loan(s).
VHDA	0%	This is an FHA program with an additional 3.5% loan from the Virginia Housing Development Authority. Eligibility is subject to income limits. May be eligible for a federal tax credit. Condo Association must be approved for an FHA loan.
FHA	3.5%	May be eligible for a Grant program. Condo Association must be approved for an FHA loan.
Conventional	3% and up	May require as little as 3% down payment. No PMI if the down payment is 20% or higher. You may be able to buy down PMI if the down payment is less than 20%.

These are just the basic options. There are other options and details that you must consider. A good loan officer is the best person to advise you on this.