Residential Mortgage Loans – Balloon Loans

A loan designed for individuals who desire to purchase a new home with a fixed monthly payment or an option to refinance.

  • 80% financing
  • Minimal closing costs
  • No escrow offered
  • Maximum debt to income ratio is 43% net
  • Fixed Rate Residential Mortgage Loans


Conventional Mortgage

  • 5% down payment required
  • Gift funds allowed with Fannie Mae Loan
  • Private Mortgage Insurance until Loan-To-Value ratio reaches 80%
  • Minimum Credit Score 640
  • Maximum Debt to Income ratio 45%
  • Seller can pay up to 3% of buyer’s closing costs or 3% of sales price can be rolled into loan to cover closing costs

USDA Rural Development

  • 100% financing
  • Gift funds can be used for closing costs
  • Seller can pay up to 6% of sales price in closing fees or 6% of sales price can be rolled into loan to cover closing costs providing appraisal will allow for increase
  • Minimum credit score 640
  • Must have at least 3 trade lines with 12 month’s history. Alternative credit such as utility bills, car insurance, rent, etc. may be used to fulfill the trade line requirement
  • Maximum debt to income ratio is 29/43% (29% is for house payment alone, and 43% is for total debt)
  • Monthly mortgage insurance for the life of the loan, but the amount decreases annually

Federal Housing Authority (FHA)

  • 3½% down payment required
  • Gift funds allowed
  • For loans with Loan-To-Value ratio of 90% or above, Mortgage Insurance Protection is required for the life of the loan. For loans with Loan-To-Value ratio below 90%, Mortgage Insurance Premiums will be required for 11 years
  • Up front Mortgage Insurance Premiums of 1.75% of base loan amount will be added to loan balance or can be paid up front
  • Maximum debt to income ratio 50%
  • Seller can pay up to 6% of sales price for buyer’s closing costs

Veterans Administration (VA)

  • 100% financing
  • No Mortgage Insurance Protection
  • A service related disability will allow funding fee to be waived
  • Gift funds can be used for closing costs or seller can pay up to 4% of sales price toward buyer’s closing costs
  • Minimum credit score 620
  • Maximum debt to income ratio 50%
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