GOVERNMENT LOANS

FHA

FHA loans are products insured by the Federal Housing Administration. These programs can be beneficial to First Time Home Buyers, those with low-to-moderate income, borrowers with FICO scores that fall below conventional financing or those with limited down payments.

As a fully licensed FHA Direct Endorsement Lender, we offer a wide variety of FHA loan products to meet your specific needs along with competitive pricing.

Criteria for an FHA Loan

Credit Score

A minimum FICO of 580 is required to qualify for the low 3.5% down payment when purchasing a home. If FICO score falls below 580, you may still qualify for an FHA loan.

Income

A two-year employment history is required to qualify for purchase FHA loans. Your Debt-to-income ratio or DTI is calculated by dividing your monthly debt payments by your gross monthly income. Lenders use this ratio to predict your ability to manage your new monthly mortgage payment. Maximum ratios are set by HUD and may differ depending on the type of FHA loan being applied for. The maximum DTI we accept is up to 46.99%/56.99% with an AUS approval.

Down Payment

FHA loans offer the lowest down payment requirement at 3.50% of the purchase price. The down payment required may increase to 10% if your FICO score is below 580.

Mortgage Insurance

Mortgage insurance is required on all FHA loans. A mortgage insurance policy protects a mortgage lender or titleholder in the event the borrower defaults on their payments, dies, or is unable to meet the contractual obligations of the mortgage. FHA requires two types of mortgage insurance: an upfront mortgage insurance premium and monthly mortgage insurance. The upfront mortgage insurance premium can be financed into the loan.

Loan Limits

Maximum loan limits are determined by HUD. Every county in the United States has a maximum loan limit for both conventional and FHA mortgages. These loan limits are reviewed annually. The 2023 national loan limit for a one-unit property is $472,030 in Low-Cost Areas and $1,089,300 in High-Cost Areas. An FHA Jumbo classification does exist for those loan amounts that are over the national FHA loan limit but under the county limit. Your Loan Officer will work with you to determine your individual financing needs.

What is a VA Loan?

VA

A VA loan is a mortgage loan issued by a private lender, like HomeXpress Mortgage, but guaranteed by the U.S. Department of Veterans Affairs. The VA loan program was established to make homeownership easier for current service members, veterans, and eligible surviving spouses. VA loans have competitive interest rates, low minimum credit score requirements, they do not require mortgage insurance, and no down payment options are available for select veterans.

Criteria for a VA Loan

Certificate of Eligibility

A Certificate of Eligibility (provided by the Department of Veterans Affairs) verifies the length and nature of your service. As a VA-approved lender, we will be able to obtain a COE on your behalf once you provide proof of your military service. If you would prefer to obtain the certificate yourself, you can apply by mail with VA Form-26-1880 or go through the VA’s eBenefits portal.

Credit Score

Some lenders require a credit score of 550+ to qualify for an VA loan. If you are a married veteran and your spouse has a higher credit score you may want to consider other loan types. For example, if the veteran (the qualifying party for a VA loan) has a credit score of 570, and the spouse / co-borrower has a credit score of 760, it might be better to apply for a different loan or have the spouse solely apply for a non-VA loan. If both of you have good credit, this is likely not a concern.

Income

VA loan borrowers are expected to have a reliable and steady income that will cover their monthly mortgage payment and other basic living expenses. In addition, the VA requires a certain amount of “residual income,” or money left over each month to provide for expenses such as food, utilities, transportation, etc. “Residual income” varies according to geographic region, but your Loan Officer will help you determine that.

Down Payment

VA loans offer homebuyers no down payment options. You may qualify for up to 100% financing.

Loan Limits

The standard VA loan limit in 2023 is $726,200 for most U.S. counties, increasing from $647,200 in 2022. VA loan limits also increased for high-cost counties, topping out at $970,800 for a single-family home. For any loans exceeding these limitations, we can offer a jumbo loan up to $1.5MM.

Resources

Realtor Referrals for VA/Military

Check VA Loan Eligibility

Realtor Referrals for VA/Military

Check VA Loan Eligibility

Apply for a Government Loan

Ready To Apply

Looking for another type of Loan Product?