As you know, when you start talking financing, there are multiple options, and you may qualify for one or more. The key is to figure out which one works BEST for you! Here’s the breakdown.

Conventional- Often the least expensive form.  But also has some of the tougher qualifying standards.  Loans to $453,100 with as little as 3% down.  Typically, it’s the best option if you have 20% or more to put down.

FHA- Common in this market.  Despite water cooler talk, not just for first time home buyers.  More flex qualifying requirements than other forms.  Loans to $322,000 with as little as 3.5% down.  The 203k option allows borrowers to finance not only the purchase of their new home but also upgrades and improvements!

VA- Designed as a benefit for veterans.  Eligible veterans and some spouses only.  Zero down payments and no mortgage insurance premiums make this an attractive option.  Loans to $453,100.

RD- For rural home buyers.  Income and geographical restrictions apply.  Zero down and no mortgage insurance.  Loan limits vary by county but run in the 2-300k range.

Jumbo- These loans are for properties where Conventional loan limits just aren’t enough.  Requirements and down payments will generally approximate Conventional guidelines but may vary.

Contract- Also known as “Seller Financing” and somewhat similar to “Rent-to-Own”.  Has the most flexible requirements, making it the “go to” form of financing if the buyer has credit, job or income issues that would get in the way of qualifying for other loan types.  Also used when speed is a major factor, as these can be closed in less than a week where other forms take about a month.  Down payments vary but, in this market, generally run 10% or more.

Sub-Prime or Non-Prime- A few investment firms have reopened this market.  More flexible qualifying standards than other forms.  Down payments and loan limits will vary depending on a wide range of factors.

Indiana Housing- There are a number of programs available, and they often carry income or property restrictions.  Down payments can be as low as zero.  Loan limits typically follow either FHA or Conventional.

Construction/Construction-Perm- Used for (you guessed it) financing the building of a new home.  Loan limits and qualifying requirements generally follow Conventional, Jumbo or FHA.

Lot Loans – Ok, make another guess. Yes, these are for buying building lots (including 10-acre size lots)

I know that was a lot to take in - Let us help! To learn what might work best for you or just to learn what options you have, please contact Mike,  our trusted lender below or click here for more information on financing.

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