$50,000 to $10 million loans

FHA and VA loans provide valuable options for borrowers who may face challenges qualifying for conventional mortgages, offering pathways to homeownership with favorable terms and benefits tailored to their specific needs.

What to know about FHA loans

Managed by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD), FHA loans are designed to help low-to-moderate-income borrowers who may not qualify for conventional mortgages.

Lower down payments

• Minimum down payment as low as 3.5% for borrowers with credit scores of 580 or higher.
• Down payments can come from gifts or grants.

Flexible credit requirements

• Available to borrowers with lower credit scores (as low as 500 with a 10% down payment).

Mortgage insurance

• Requires both an upfront mortgage insurance premium (UFMIP) and annual mortgage insurance premiums (MIP).
• UFMIP is typically 1.75% of the loan amount, while MIP varies based on loan amount and term.

Loan limits

• FHA loan limits vary by county and are set based on local housing prices.

Assumable loans

• FHA loans can be assumed by a new buyer, which can be an advantage when selling the home.

Eligibility

• Must have a valid Social Security number, lawful residency in the U.S., and a steady employment history.
• Must use the loan to purchase a primary residence.

What to know about VA loans

Managed by the U.S. Department of Veterans Affairs (VA), VA loans are intended to help veterans, active-duty service members, and certain members of the National Guard and Reserves buy homes.

No down payment

• 100% financing available, meaning no down payment is required in most cases.
• This can significantly reduce the upfront cost of purchasing a home.

No private mortgage insurance (PMI)

• VA loans do not require PMI, which can save borrowers money over the life of the loan.

Competitive interest rates

• Typically offer lower interest rates compared to conventional loans.

Flexible credit requirements

• More lenient credit requirements, though lenders still have their own standards.

Funding fee

• VA loans require a funding fee, which can be financed into the loan. The fee varies based on the down payment amount and whether it’s a first-time or subsequent use of the VA loan benefit.

Loan limits

• There are no VA loan limits for borrowers with full entitlement. However, limits may apply to those with partial entitlement.

Eligibility

• Must have served a minimum period of active duty service, typically 90 consecutive days during wartime or 181 days during peacetime.
• Must have an honorable discharge (with some exceptions for other discharge types).
• Certificate of Eligibility (COE) required to verify entitlement.