Academy Mortgage Services, Inc. will examine your financial information and provide you with the best loan product to meet your needs, since every buyer has different needs. Academy will provide a pre-qualification to get you pre-approved as soon as possible in the loan process to provide you with any pre-approval requirements set by the lender.
Loan Type Comparisons: Conventional and FHA Loans
|Minimum Down Payment||5% can be homebuyer’s and/or gift refunds||3.5% can be homebuyer’s and/or gift refunds|
|Maximum Seller Assistance||3% (<10% down payment)
6% (>10% down payment)
|Mortgage Insurance (MI)||Private Mortgage Insurance (PMI) – Dependent on credit score, down payment, loan purposes, and loan term||Upfront Mortgage Insurance Premium (UFMIP) – Factored at 1.75% of the base loan amount (can be financed in the loan)
Monthly Mortgage Insurance Premium (MIP) – Usually factored at 1.35% of the base loan amount and life of loan.
|Typically lower mortgage insurance can be cancelled at 20% equity is achieved or investment in value or principle reduction. Can use gift funds for down payment.||Less money out of pocket. Lower credit score requirements. Can use gift funds for all cost and down payment. Expanded lending guidelines to first time homebuyers.|
|More money out-of-pocket. Higher credit score requirements. Less flexible lending guidelines and debt-to-income ratios.||Higher mortgage insurance costs than conventional mortgage insurance. Mortgage insurance is included for the life of the loan and cannot be cancelled.|
Call Academy Mortgage Services Inc. to discuss loan products to meet your specific needs.
*FHA scenarios assume a standard 3.5% down payment for a 30-year, fixed rat FHA loan. The mortgage insurance requirements may change if the homebuyer is putting down more than 10% or desires a term less than 30 years.
All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available for all amounts. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend. Please contact Academy Mortgage Services Inc. for more information.