LOAN PROGRAMS

Most people choose a 30-year fixed rate loan, but loans are also available in 20, 15 and 10 year terms. Conventional mortgages typically require that a buyer have at least a 5 percent down payment. However, if a borrower can put 20% down they can usually get slightly better loan terms and can also avoid paying for private mortgage insurance (PMI). In addition, some programs allow qualified buyers to come up with as little as 3% down. Conventional mortgages have a maximum loan amount in 2019 of $484,350 for most of the state of Indiana.

They are government-insured loans that offer very low down payments, which may be gifted from relatives or employers. Rates are often lower, and qualifying is easier because credit is not as large a factor. Refinancing is easier, and there are other products and services available. FHA Loans have a cap on how much can be borrowed with a maximum loan amount in 2019 of $343,850 in our area. FHA mortgages are not restricted to first-time borrowers and come in 30 and 15 year loan terms, as well as the FHA 203k rehabilitation program.

Similar to FHA loans, VA loans have certain guidelines that allow more people to qualify. In addition, some VA loans require no or little down payment. There are limits on the size of VA loans – $484,350 in our area as of 2019 – but they are usually large enough to cover the purchase of moderately priced homes. VA-guaranteed home loans are made by private lenders like Integrity Mortgage Group. The “guaranty” means that the VA will protect the lender against loss if the veteran or a later owner fails to repay the loan. You must have suitable credit, sufficient income, and a valid Certificate of Eligibility to be eligible for a VA-guaranteed home loan.