Compare Loan Programs

• Monthly payments are fixed over the life of the loan
• Interest rate does not change
• You’re protected if rates increase
• Option to refinance if rates decrease

• Higher interest rate
• Higher mortgage payments
• Rate does not drop if interest rates decrease

• Only need 3.5% down payment
• Down payment can come in the form of a gift
• Seller can pay up to 6% of closing costs
• Former bankruptcy and/or less-than-perfect credit may not be a problem

• Must purchase Mortgage Insurance (MI)
• All outstanding judgements must be paid in advance of closing
• May take longer to process than a conventional loan

• Up to 100% of loan amount can be financed
• Seller can pay all closing costs and/or discount points
• No Mortgage Insurance (MI)
• No cash reserves necessary
• Most loans are assumable

• Eligibility requirements vary
• Can only be use a limited amount of times
• May take longer to process than a conventional loan

• Qualified first-time homebuyers are eligible to receive a forgivable grant of 4.5% for down payment and closing costs
• Competitive interest rates available
• FHA, VA, USDA/Rural Development, or Fannie Mae 30 year conventional mortgages may be used under the rules of this program

• Eligibility requirements vary
• Can only be use on qualified properties
• Purchase price limits
• Household income restrictions

• Up to 102% of property's appraised value can be financed
• Seller can pay all closing costs and/or discount points
• No Mortgage Insurance (MI)
• No Down Payment necessary
• Available for low income applicants (below 50% of are median income)
• Modular and "new" manufactured homes allowed
• No Maximum Loan Amount

• Eligibility requirements vary
• Can only be use on qualified properties
• Income limits for applicants

• Lower initial monthly payment
• Lower payment over a shorter period of time
• Rates and payments may go down if rates decrease
• May qualify for higher loan amounts

• More risk
• Payments may change over time
• Potential for high payments if rates increase

• Lower down payment
• Easier to qualify
• You may get lower rates
  

• May be subject to income and property value limitations
• Some programs with government subsidies may have a recapture tax if you sell the house too early.

• Get loans for higher loan amounts
• Get fixed or adjustable loan terms

• Higher rates
• Many times there is more upfront cost

• You only borrow what you need
• Pay interest only on what you borrow
• Flexible access to funds
• Interest may be tax deductible (ask your tax advisor)

• Rates can change. Maximum interest rate is typically high.
• Payments can change
• Harder to refinance your first mortgage

Home Equity Fixed Loan back to top
>>Learn More about Home Equity Loans

• Fixed payments
• Interest may be tax deductible (ask your tax advisor)

• Higher interest rates than first mortgages
• Harder to refinance your first mortgage