Conventional Loan
Conventional home loans are among the most popular home loan programs. All Fidelity Blueline Mortgage, Inc. conventional loans are fixed rate loans. There are no pre-payment penalties. The characteristic of fixed rate mortgages that makes them most appealing to many is the stability. The interest rate for this loan is locked in at origination and remains the same throughout the term of the loan, regardless of changes in the prevailing market rate. This allows the consumer to rely upon a stable monthly payment throughout the term of the loan whether it spans 30, 20, 15 or 10 years. Also, there is a 3% down option for first time home buyers.
Minimum credit score: 680
Refinance: Rate and Term
This type of refinance means that you are only refinancing your first mortgage loan and not paying off other debts or loans except for your current first mortgage. This type of loan does not allow for cash out to the borrower. There is one circumstance that allows the borrower to pay off a first and second mortgage and still be considered a rate and term refinance.
This is usually only possible if your second mortgage was used to purchase your home with a simultaneous close combination loan. If your second mortgage was obtained after you purchased your home then you’re loan would be considered cash out if you elect to pay off that second mortgage.
Minimum credit score: **See loan type (Conventional, FHA, VA, USDA Rural Development)
Refinance: Cash-Out
This type of refinance means that you are paying off your first mortgage, a second mortgage taken out against your home at a different time of the purchase date or you are paying off additional debt or getting cash out at closing. Cash out refinances typically have additional restrictions and additional interests rate adjustments. This means that you may not be able to borrow as high of a percentage against your property for the cash out loan as you would for a rate and term loan.
Minimum credit score: **See loan type (Conventional, FHA, VA, USDA Rural Development)
VA Loans
100% loan to value on purchase and refinance. VA loans are another government guaranteed mortgage that has 100% financing. To be eligible for a VA loan, one must have a history of active military service or be the surviving spouse of an active service member. Often, a Veteran can obtain a VA loan with no down payment.
Minimum credit score: 640
USDA Rural Development Loan
The USDA Rural Development Guaranteed Housing Loan is another government guaranteed home loan option for purchasing only. This type of home mortgage is provided to individuals purchasing a home in an area designated as a Rural Development eligible area. There’s also income limits designated for these eligible areas. No down payment is required with this loan program and qualification can be much easier than your average home loan, allowing customers with less than perfect credit scores to obtain financing for home purchases. This program is a great option for new recruits coming out of the academy who are looking for housing.
Minimum credit score: 640