Loan Types for Primary Residence, Second Home, Investment Properties, to Purchase or Refinance

A conventional loan will follow guidelines of the government-sponsored enterprises, Fannie Mae (FNMA) and Freddie Mac (FHLMC). Loan amounts of $484,350 (Conforming) and under with a down payment of 3% or more are requirements for this loan. Loan terms of 10, 15, 20 and 30 years are available.

This type of loan offers borrowers conventional financing for loan amounts of $484,351 to $726,525 (High Balance). Loan limits are specific to each state and county. Rates are slightly higher than conventional loans to compensate for the higher risk to the lender.
*Eligibility subject to program stipulations, qualifying factors, applicable income requirements, and property limits. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

This home loan applies to mortgages above $726,526 to $4,000,000+. Depending on the purchase price, down payments of 20%-40% are program guidelines.
*Eligibility subject to program stipulations, qualifying factors, applicable income requirements, and property limits. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

FHA home loans are mortgages insured by the Federal Housing Administration which has been in existence since 1934. Advantages for FHA loan qualifications include: minimum down payment, a minimum credit score of 620 and prior bankruptcy. Contrary to popular belief these loans are available to most borrowers, not just first-time homebuyers.

Beginning in 1944, the VA Home Loan provides eligible veterans with a federally guaranteed mortgage with no down payment. The VA guarantees a maximum of 25% of a home loan up to $104,250 which allows a maximum loan amount of $726,525. Higher loan amounts are available with a minimum down payment.
*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds the VA county limits. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits. Fairway is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency.

An interest-only option can be a feature on most types of loans. However, it is typically available only for a specified time, at which time the payment will increase because of the additional principal portion of the payment. Paying only the interest enables you to make lower payments without increasing your loan balance. The principal balance does not decrease and one does not build equity. Typically, additional payments towards the principal balance can be paid during the interest-only period.

Mortgage Types