Federal Hill Mortgage Facebook Federal Hill Mortgage Twitter Federal Hill Mortgage LinkedIn Federal Hill Mortgage Yelp
904 Light Street
Baltimore, MD 21230
1.800.551.9198

Sound, reliable mortgage advice.
Personalized, professional service.

Purchase Mortgage Programs

FHA Purchase Loans

FHA loans are loans administered by The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). FHA loans are easier to qualify for than conventional loans and permit a seller to cover a buyer’s closing costs in an amount up to 6% of the sales price. However, FHA loans have the highest monthly mortgage insurance rates, require up-front mortgage insurance and require that the property pass a more rigorous appraisal.

The basic requirements for an FHA Purchase Loan are:
– 620 median credit score
– 3.5% minimum down payment
– Satisfactory documented Income
– Property must be used as the borrower’s primary residence
– Borrower may not have any other outstanding FHA loans in their name
– Property may not have more than 4 units

VA Purchase Loans

VA loans are guaranteed by the U.S. Department of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans with favorable loan terms, which terms include zero down payment requirements and no mortgage insurance.

The basic requirements for a VA Purchase Loan are:
– 620 median credit score
– Borrower must be eligible for VA benefits
– Satisfactory documented income
– Property may not have more than 4 units

Conventional Purchase Loans

Conventional loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac, two stockholder-owned corporations. Conventional loans have significantly lower monthly mortgage insurance rates than FHA loans, do not require any up-front mortgage insurance and can be used for investment properties.  However, conventional loans have higher credit standards than FHA loans and permit a seller to cover a buyer’s closing costs in an amount up to 3-6% of the sales price, depending upon the down payment.

The basic requirements for a Conventional Purchase loan are:
– 620 median credit score (660 if down payment is less than 10%)
– 3% minimum down payment
– Satisfactory documented Income
– If the property being purchased is an investment property, the borrower may not have more than ten (10) financed properties
– Property may not have more than 4 units
– In most counties, loan amount must be less than $494,500 if the property is a 1-unit, less than $633,050 if the property is a 2-unit, less than $765,200 if the property is a 3-unit and less than $801,950 if the property has 4 or less units.

Jumbo Purchase Loans

Jumbo loans are loans above the maximum loan amount established by Fannie Mae and Freddie Mac. Jumbo loans have a slightly higher interest rate than conforming loans, require a larger down payment and have a higher credit score threshold than other loan types.

The basic requirements for a Jumbo Purchase loan are:
– 720 median credit score
– 20% minimum down payment
– Satisfactory documented Income
– Property may not have more than 4 units
– Loan amount must be more than $2,000,000 if the property is a 1 or 2-unit or more than $650,000 if the property is a 3 or 4 unit.

Stated Income Purchase Loans

The Stated Income Purchase Loan is a unique product in that does not require proof of income.  However, it requires 40% down and carries a substantially higher interest rate and closing costs.  It may be used for primary homes, second homes or investment properties.

The basic requirements for a Stated Income Loan are:
– no median credit score
– 40% down payment

Section under construction and details to follow

Get-Approved

Purchase

Refinance

Investors