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Katia De Faria
(201) 954-3663
[email protected]
[email protected]
Conventional
Conventional Loan
The most common loan type, not backed by the government. Best rates for borrowers with strong credit. Works for primary homes, second homes, and investment properties.
- Min. Down: 3% primary / 15–25% investment
- Credit Score: 620+ recommended, 740+ for best rates
- PMI: Required if down <20%, drops at 20% equity
- Best For: Buyers with good credit and stable income
- Docs Needed: W-2s, 2 yrs tax returns, pay stubs, bank statements
FHA
FHA Loan
Government-backed loan insured by the FHA. More flexible on credit and income requirements — ideal for first-time buyers or those with less-than-perfect credit history.
- Min. Down: 3.5% (580+ credit) / 10% (500–579)
- Credit Score: 500 minimum, 580+ for best terms
- MIP: Mortgage insurance required — may be for life of loan
- Best For: First-time buyers, lower credit, limited savings
- Docs Needed: W-2s, 2 yrs tax returns, pay stubs, gift letters
VA
VA Loan
Exclusively for eligible veterans, active-duty service members, and surviving spouses. No down payment, no PMI, and competitive rates — one of the best loan programs available.
- Min. Down: 0% — no down payment required
- Credit Score: No official minimum, most lenders require 620+
- PMI: None — significant monthly savings vs other loans
- Best For: Veterans & active military — primary residence only
- Docs Needed: Certificate of Eligibility, W-2s, pay stubs, DD-214
Investment
Investment Property Loan
A conventional loan for non-owner-occupied rental properties. Lenders view these as higher risk — expect stricter requirements, larger down payments, and a rate premium over primary home loans.
- Min. Down: 15–25% depending on lender and units
- Credit Score: 680+ recommended, 720+ for best rates
- Rate Premium: Typically 0.5–0.75% above primary loan rate
- Best For: Landlords, buy-and-hold investors, rental income buyers
- Docs Needed: 2 yrs tax returns, leases, rental income history
Important: Rates, requirements, and terms vary by lender and change frequently. This overview is for general education only. Your actual rate and qualification depend on your credit score, debt-to-income ratio, cash reserves, and the specific lender program. Always consult a licensed mortgage professional before making financing decisions.
K
Estimates only — not a guarantee. 2025 federal brackets. Actual tax savings vary. Schedule A assumes standard deduction was previously taken. Multi-family: 50/50 split, 75% depreciated over 27.5 yrs, PAL phases out $100k–$150k AGI. Investment: 100% deductible. Consult a CPA.
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