Willow Servicing supports all loan types, even those with special eligibility requirements. Discover what loan type could best fit you or your customer’s needs and Willow Servicing will take care of the rest!
Purchasing a new home is likely one of the most significant investments you'll ever make. Before embarking on the search for the perfect home, it's important to examine various mortgage choices. It's worth noting that not all home loans are identical, which is why conducting thorough research beforehand can assist you in selecting the most appropriate option for your financial circumstances and potentially save you money. Moreover, being well-informed about the application process guidelines will provide you with a clear understanding of what to anticipate.
A Conventional loan is a type of mortgage that is not insured or guaranteed by a government agency. It is offered by private lenders such as banks, credit unions, or mortgage companies. Conventional loans typically require a higher down payment, have higher credit score requirements, and may require private mortgage insurance (PMI) if the down payment is less than 20%. The cost of PMI depends on several factors such as the size of the mortgage loan, down payment amount, and credit score. These loans offer more flexibility in terms of property types and can be used for purchasing a home or refinancing an existing mortgage.
Ideal for: An ideal choice for borrowers with good credit and the ability to make a larger down payment is a conventional mortgage. Over time, these loans are more cost-effective and can serve as a prudent investment for your future. There are two variants of conventional mortgages available: fixed-rate and adjustable-rate options.
An FHA loan, also known as a Federal Housing Administration loan, is a type of mortgage that is insured by the U.S. Federal Housing Administration. The FHA is a government agency within the U.S. Department of Housing and Urban Development (HUD). The purpose of FHA loans is to make homeownership more accessible and affordable, particularly for first-time homebuyers and those with lower credit scores or limited down payment funds. FHA loans are popular because they have more lenient eligibility requirements compared to conventional mortgage loans.
Ideal for: (FHA) loans are ideal for certain types of homebuyers, particularly those who may not qualify for conventional loans due to limited financial resources or less-than-perfect credit histories. FHA loans are insured by the Federal Housing Administration, which allows approved lenders to offer more favorable terms and lower down payment requirements compared to conventional mortgages.
A VA loan refers to a mortgage loan program that is guaranteed by the U.S. Department of Veterans Affairs (VA) and is specifically designed to assist veterans, active-duty service members, and eligible surviving spouses in purchasing, building, or refinancing a home. The VA loan program was established to provide financial support to veterans returning from World War II. The program aims to help veterans achieve homeownership by offering them favorable loan terms and benefits. The VA Funding Fee which is a type of mortgage insurance, may be reduced or exempted based on the veterans eligibility status. This fee can be added to the loan balance or paid separately when closing the transaction.
Ideal for: VA (Veterans Affairs) loans are ideal for military veterans, active-duty service members, and eligible surviving spouses. These loans are a special benefit offered by the U.S. Department of Veterans Affairs and are designed to help those who have served in the military achieve homeownership with more favorable terms and conditions.
A USDA loan, also known as a USDA Rural Development Loan, is a type of mortgage loan program offered by the United States Department of Agriculture (USDA). It is designed to assist individuals and families with low to moderate incomes in purchasing homes in rural areas. The USDA sets specific criteria for qualifying properties based on population density, location and income requirements. The mortgage insurance obligation for USDA loans consists of two components: the initial fee and the yearly fee. The initial fee is a singular payment that can either be included in the loan amount or paid separately during the closing process. The yearly fee, on the other hand, is paid monthly and is determined as a percentage of the remaining loan balance.
Ideal for: USDA (United States Department of Agriculture) loans are ideal for first time homebuyers with low to moderate income. USDA loans are designed to promote homeownership in rural and suburban areas by providing affordable financing options including no down payment.
Loan Programs at a Glance
Willow has created a loan program comparison guide to make it easy to find a loan program that could fit your specific needs. Click on the image below to view and save it for future reference.
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