Which loan is right for you?
What's The Right Loan For You?
The very first step to homeownership is applying for a loan, but which one best suits your needs? Learn more about your loan options, then speak to our lender to learn more.
Conventional loans are best for those with good credit and a low debt-to-income (DTI) ratio. Also, when you pay 20% down, you’re not required to pay for private mortgage insurance (PMI).
- Potential to save money with a down payment of 20% or more
- Possible down payments as low as 3%
- Flexible payment terms, 45% DTI ratio
- Best for homebuyers looking for a mortgage with low fees
FHA loans are backed by the government and are popular with first-time homebuyers looking for a low down payment. The credit score requirements are also more lenient.
- Low down payment requirement (as low as 3.5%)
- Lenient credit score
- Less strict income requirements, DTI ratio of 50% or less
- Best for home buyers recovering from financial setbacks or have thin credit
If you're a qualified service member, veteran, reservist, or surviving spouse, a VA loan requires no money down, and you do not have to pay private mortgage insurance.
- 0% down payment required
- No private mortgage required
- Loan can be used to purchase property, refinance, or improve current home
- Only for service members, veterans, reservists, or surviving spouses may be eligible
Jumbo mortgage loans are for those interested in purchasing a higher-priced property that exceeds the area’s maximum loan amount set by Fannie Mae and Freddie Mac.
- Borrow a bigger loan compared to conventional loans. Underwriting may be stricter.
- Alternative qualification available
- Fixed or adjustable rate mortgage rates available
- Best for home buyers that live in an expensive area or need loans that exceed county limits.
Non-QM (Non-Qualified Mortgage) loans are for non-traditional borrowers, such as self-employed or seasonal workers, those who are credit-challenged, or those who have difficulty qualifying for a traditional loan.
- Borrowers with non-traditional financial situations may qualify
- Flexible credit score requirement, DTI ratio of 43% or less (higher numbers may be negotiable)
- Alternative payment terms available
- Best for home buyers who are self-employed, have fluctuating income, or own significant assets
Numbers at a Glance
(1) 3.5% down payment for credit scores of 580+; credit scores from 500 to 579 will require a 10% down payment.
(2) Can be wrapped up into loan.
(3) Of existing loan balance.
Answers to Frequently Asked Questions
Why Choose Old Town Lending
You have many lending options; however, you owe it to yourself to learn why
Old Town Lending may be the better option.
Never left wondering. Receive concierge-level service from application to pre-qualification to closing of escrow. Empowering you is our goal.
Don't let that perfect home slip away. You need a pre-approval and loan right away, and you have came to the right place. We are real estate brokers too, we understand.
Mortgage brokers have access to wholesale rates, which are much cheaper than retail bank rates, ultimately meaning a lower monthly mortgage payment.
Personal & Local
No longer are you just a number lost in the shuffle of big banks. Located in your home state, you will be guided each step of the way.
Right Fit from the Start
With our endless lending programs, we will find the right loan and best terms for you. Think of it as a completely customizable experience.
Experience You'd Expect
When working with a broker in real estate and mortgage, you are sure to receive a well-rounded client-centered experience you'd come to expect.