For more information, please call (812)941-0926 or email [email protected] or better yet...stop by and visit us at 1114 E. 10th Street. Jeffersonville, IN 47130.

Types of Home Loans

Choose the Home Loan Program That Is Best For You

When it comes to the different types of home loans, it can seem like there are almost too many options. How do you know which home loan program you should apply for? At Smith Broady and Associates we like to take the guess work out of the home buying process. Here is a summary of the types of home loans you might come across. If you have further questions or need advice, don’t hesitate to contact us!

USDA – Rural Housing Loans:
•100% Financing Available
•Credit score of 620 or above required
•Offered by the US. Dept. of Agriculture Rural Development Program
•Verify the home is eligible for a USDA Home Loan Program by clicking here USDA Loan Eligibility Verification

Federal Housing Administration (FHA) loans:
•You may borrow up to 85% of the value of your home when you refinance to get cash out of your home or pay off debt.
•You can borrower up to 96.5% of the value of a home when you choose FHA as your purchase loan. That means you can buy a new home with only 3.5% of the purchase price down.
•Your entire 3.5% down payment can be gifted to you from a relative.
•You can also borrower up to 96.5% of the value of your home if you are refinancing with out taking cash out or consolidating other debts.
•FHA mortgages offer more flexible credit and income requirements than conventional mortgages.
•The seller of the home can contribute up to 6% of the purchase price of the home toward the closing costs as an incentive. This can reduce your out of pocket costs considerably.

Veteran’s Administration (VA) loans: (These types of Home loans are available for Veterans)
•In most cases a VA Home Loan requires no down payment.
•No mortgage insurance premiums.
•No pre-payment penalties.
•Streamline Refinance available for existing VA borrower
•The VA Home Loan is one of the only “zero out of pocket” loans available.

Conventional Loans:
•Typically this type of loan is for customers who have 20% down payment who wish not to have PMI.
•These loans also consist of 10% down to 5% down payment.

Jumbo Loans:
•A Jumbo loan is a loan amount greater than $417,000.

Fixed Rate Mortgage:
•You want a fixed, predictable payment for the life of the loan.
•Your budget remains relatively constant.
•You plan to own your home for 5 or more years.

Adjustable Rate Mortgage:
•You do not plan to own the home for longer than the fixed rate period.
•You are looking for the lowest possible payment during the fixed rate period.
•You are comfortable having an interest rate and payment that may increase based on market conditions.

Contact Us!

For more information, please call (812)941-0926 or email [email protected]

1114 E. 10th Street Jeffersonville, IN 47130
812-941-0926812-941-0952

Smith Broady & Associates