While the U.S. housing recovers, the mortgage market rebuilds. As a result, today's home buyers have more mortgage financing options than at any time in the last 5 years. With so much choice and brand-new rules, it can be tough to know which loan is best.
The "rules of thumb" from yesteryear no longer apply.
To help today's buyers make better mortgage choices, The Mortgage Reports presents this flowchart.
The graphic uses three specific loan traits as a starting point -- (1) Downpayment Amount, (2) Loan Size and (3) Credit Score -- then follows-up with specific questions to uncover a buyer's optimal mortgage program.
In addition to identifying conventional loan opportunities via Fannie Mae and Freddie Mac, the flowchart identifies loan possibilities via the Federal Housing Administration (FHA), via jumbo mortgage lenders, and via niche mortgage programs including the USDA Rural Housing loan, the Department of Veterans Affairs VA loan, and the Fannie Mae Conventional 97 program.
Some of the questions asked include :
Depending on a buyer's answers to the above questions, the flowchart may recommend a conforming loan; or a jumbo mortgage; or a something more suitable. Home buyers in less-densely populated areas may find the USDA Rural Housing program to be the best fit.
Furthermore, first-time buyers planning on a low- or no-downpayment mortgage may be routed to specific loan program depending on whether their downpayment is a gift, or is sourced from their own funds.
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The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
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2015 Conforming & FHA Loan Limits
Mortgage loan limits for every U.S. county,
as published by Fannie Mae & Freddie Mac, and the FHA.