Compare Your Loan Options
See how different loan programs stack up so you can choose the financing that fits your goals.
Traditional Loan Programs
Conventional
Down Payment: 3–20%
Minimum Credit Score: Around 620
Qualifying Ratio: Up to 45–50% DTI with strong compensating factors
Mortgage Insurance/Fee: PMI required under 20% down, removable once you reach 20% equity
Best For: Buyers with solid credit and some savings for a down payment.
FHA
Down Payment: 3.5% minimum (10% if credit score is 500–579)
Minimum Credit Score: 580 (500–579 with 10% down)
Qualifying Ratio: Around 43–55% DTI
Mortgage Insurance/Fee: Upfront MIP of 1.75% plus annual MIP for the life of the loan if under 10% down, or 11 years if 10%+ down
Best For: Buyers with lower credit scores or limited down payment funds.
VA
Down Payment: 0% for eligible buyers
Minimum Credit Score: No VA-set minimum; lenders typically look for 580–620+
Qualifying Ratio: As high as 68% DTI, flexible with strong residual income
Mortgage Insurance/Fee: One-time VA funding fee instead of monthly mortgage insurance
Best For: Eligible veterans, active-duty service members, and certain surviving spouses.
USDA
Down Payment: 0%
Minimum Credit Score: Around 640 for automated approval
Qualifying Ratio: 29% housing ratio, 41% total debt ratio
Mortgage Insurance/Fee: 1% upfront guarantee fee plus 0.35% annual fee
Best For: Buyers in eligible rural or suburban areas with moderate income, up to 115% of area median income.
Specialty & Investment Loan Programs
These programs are designed for investors and self-employed borrowers who need more flexible ways to qualify.
DSCR Loans
- Down Payment/LTV: 20–25% down, up to 80% LTV for well-qualified borrowers
- Minimum Credit Score: Around 620–660 (700+ for the best terms)
- Qualifying Method: Based on the property's rental income covering the mortgage payment (debt service coverage ratio of 1.0–1.25+), no personal income or tax returns required
- Rate & Terms: Typically about 0.5–1.5% above conventional rates
- Best For:Â Real estate investors who prefer to qualify off rental income instead of personal income.
Bank Statement Loans
- Down Payment/LTV: 10–30% down (15%+ for investment or second homes)
- Minimum Credit Score: Around 620–680+
- Qualifying Method: Based on 12–24 months of personal or business bank deposits instead of tax returns, DTI generally up to 43–50%
- Rate & Terms: Typically about 0.75–2.0% above conventional rates
- Best For:Â Self-employed borrowers and business owners whose tax returns don't fully reflect their true income.
Hard Money Loans
- Down Payment/LTV: 10–30% down, typically 65–75% LTV
- Minimum Credit Score:Â Flexible and property-focused; no strict minimum, though many lenders prefer 600+
- Qualifying Method:Â Based primarily on the property's value and equity rather than income or credit
- Rate & Terms: Short-term loans of about 6–24 months with higher interest rates reflecting speed and flexibility
- Best For:Â Investors who need fast, short-term financing such as fix-and-flip projects.
Commercial Loan Products
- Down Payment/LTV: 15–35% down, sometimes as low as 10% with strong compensating factors
- Minimum Credit Score: 620+ (720–740+ for the best pricing on larger loans)
- Qualifying Method: Based on the property's or business's debt service coverage ratio, typically 1.20–1.35+
- Rate & Terms: Commonly 30-year fixed terms, with adjustable-rate and interest-only options also available
- Best For:Â Business owners and investors purchasing, refinancing, or expanding commercial real estate.
Not Sure Which Loan Is Right for You lets compare loan options?
Navigating the mortgage landscape requires more than just numbers—it requires a strategy. Connect with Adam Lewis to receive personalized guidance and compare loan options to find out exactly which loan option fits your financial situation and homeownership goals. Match your goals with the right program today.
