1412 B Peterman Dr.
Alexandria, LA 71301
866-902-8020 Toll Free
- CONVENTIONAL LOANS
- Conventional loans have down payment options. The first is a minimum 5% which requires a 620 minimum credit score. If the down payment is between 5% and 19.99%, you are required to pay monthly mortgage insurance. The premium is based on credit scores and the percentage of money you put down. There are several options now available called "Upfront Mortgage Insurance". This upfront premium can be paid by the Borrower or by the Lender. Both eliminate the monthly premium, which can translate in to great savings. Also, on any conventional loan the seller can pay up to 3% of the sales price towards your closing costs.
- FHA (Low Down Payment)
- FHA loans require a 3.5% down payment, a minimum 620 credit score and the seller can pay up to 6% of the sales price toward your closing costs. Mortgage insurance is required and is calculated based on the amount of the down payment. Lenders are looking for twelve months of good payment history on items listed on your credit report.
- VA loans offer 100% financing and a certificate of eligibility is required. Qualification is based on your minimum credit score of 620, your income and your debts. There is no mortgage insurance! Sellers can pay up to 6% of the sales price toward your closing costs. The VA charges a funding fee which is based on your down payment, type of service and number of times you have used your certificate. This can be paid at closing or added to your loan.
- Rural Development
- Rural Development loans offer 100% financing with a minimum credit score of 620. A low rate of mortgage insurance is required and is calculated based on the loan amount. Sellers can pay up to 6% of the sales price toward your closing costs. The main requirement is the property has to be rural. This is usually any property located outside the city limits. Some parishes are 100% rural and qualify. There are also limits to the amount of household income. For a household of 1-4 persons, the limit is $74,750. For a household of 5-8 persons, the limit is $98,650. Households of 9 plus persons, add 8% of the 1-4 person income limit for each person.