Frequently Asked Questions
Types Of Loans And Down Payment Options
Primary home loans, vacation home loans, investment property loans, DSCR, fix and flip, construction to permanent on conventional sized loans, and bridge loans. In addition to these traditional lending options, many financial institutions provide flexible terms and competitive interest rates tailored to meet diverse borrower needs. For those looking to minimize their initial investment, there are also 100% financing mortgage options available, allowing purchasers to secure properties without a down payment. These alternatives can open up new opportunities for homeownership and investment, making it easier for buyers to enter the real estate market. Additionally, understanding the different types of loans explained can help prospective buyers make informed decisions that align with their financial goals. Each option comes with its unique benefits and potential drawbacks, such as varying interest rates and repayment terms. Educating oneself on these differences can empower borrowers to choose the right financing solution for their specific needs, ultimately facilitating a smoother path to homeownership or investment success.
As little as 3% conventionally or 0% on VA loans.
Yes! You can have one in each state if you wanted, you just can’t have two in the same location as the other.
No, there is only one second home allowed per married couple in the same area.
Of course!
You are separate households and can vacation at different times and not have to vacation together if you did not want to
Yes! If you have a current primary housing expense such as a mortgage, rent, etc. you can use just enough to offset the PITIA. If you have previous rental experience within the past three years, you can use 75% of the total amount of projected monthly income.
Yes you can have 100% of the down payment and closing costs gifted to you on a primary residence. For second homes, if you are just putting 10% down, 5% has to come from your own pocket and the remaining 5% plus closing costs can be gifted to you. If you are putting 20% down on a second home loan, 100% of the down payment and closing costs can be gifted to you. You usually are not allowed to have gift funds on investment loans but some DSCR loans allow for it.
Of course! Keep in mind that we will need to update that monthly payment to count against your debt though.
Yes you can if needed, but let’s talk about your long term goals and see if that is the best option for each of you.
For conventional, you can technically go as high as 50% if FNMA or FHLMC gives us an Accept or Approve/Eligible. For jumbos, the max DTI
is 45%.
