Traditional Loans


Conventional loans are actually any type of creditor agreement that are not financed by the Veterans Administration (VA), or supported by the Federal Housing Administration (FHA). In general, all conventional loans are protected by the government sponsored entities such as Fannie Mae (FNMA) and Freddie Mac (FHLMC).

There are two different types of Conventional loans; Conforming and Non-Conforming loans. Conforming loans have to meet the guidelines set by Fannie Mae and Freddie Mac. Any loan which does not meet guidelines is a non-conforming loan


    Lower Fees: Fees associated with Conventional loans frequently are lower than other loan products because the lender sets these rates.

    Interest Rates: Lenders determine the rates to offer borrowers based on their credit scores. A person with a solid credit score is often able to secure a lower rate.


A jumbo loan is a loan in which the amount borrowed is greater than the loan limit set by Fannie Mae (FNMA) & Freddie Mac (FHLMC). 


    Able to finance a home that is over the maximum loan amount of $424,100 established by Fannie Mae and Freddie Mac

    Enables a borrower to purchase “more house”

Government Loans


The Federal Housing Administration was created in 1934 in an effort to bolster homes sales during the Depression. By financially guaranteeing loans, the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.


    Bankruptcy not an automatic disqualification

    Lower interest rates

    Down payment is less

    Lower mortgage points and other closing cost requirements

    Resale can be made more quickly

    Is backed by the U.S. government


    Down payment required

    Higher upfront Mortgage Insurance Premium (MIP) than on conventional loans but monthly MIP is lower

    Loan Limits are lower than conventional

    MIP required regardless of the Loan-to-Value (LTV)



The USDA Rural Housing Service has various programs available to aid low- to moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities. USDA Rural Housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no down payment.


    No down payment requirement

    Property must be located in an eligible rural area

    Closing costs can be added to the loan amount (if the property appraises high enough to include it at up to 102% of the appraised value)

    Loan government guarantee fee with no monthly guarantee fee

    Low interest rates

    Applicants with a wide range of credit profiles may qualify

    Income eligible applicants who do not qualify for conventional financing may qualify

    Families & individuals that have minimal funds for a down payment and closing costs includes first time homebuyers and repeat homebuyers

    Seller concessions – 6% max

    No cash reserve requirement

    No Non-Allowable costs

    No First Time Homebuyer Requirement

    30 Year Loan @ competitive fixed rate

    No limit on gift funds


    Property must be in very good condition and have a high insulation R-factor

    You can not make over 50% of 115% of the median county income to qualify

    Must be able to verify income limits

The pre-approval process, which entails full documentation and credit check, is the best way to determine the number that are right for you. Early in your search, you can identify any potential hurdles and focus only on homes truly available to you.

The Purchase Pre-Qualification calculator below will help you determine how much you may be able to borrow based on your income and recurring monthly debts.

Some costs will vary based on your scenario. While this is a good place to start, I hope we’ll talk further before you start looking. We would be happy to verify the necessary information to be able to provide you with a pre-approval that can give you a big leg up on competitors when making an offer on a home.

Please reach out when you’re ready. I’m here to help!