A conventional loan is not formally backed by any government entity such as FHA or VA. Rather, a conventional loan follows guidelines set by Fannie Mae and Freddie Mac, the two agencies that help standardize mortgage lending in the U.S.

VA loans are mortgage loans that are guaranteed by the United States Department of Veterans Affairs. If you are a veteran or an active duty service member, you may qualify for a VA loan. Some of the benefits of VA loans are that they offer competitive interest rates, flexible qualification requirements, never have PMI, and are often available with a 0% down payment!

At Elite Mortgage Group, we love our veterans and active duty service members, and we are committed to getting our nation’s heroes the best deal possible on their home loans. We thank you for your service to our country!

FHA loans are mortgages that are government-insured by the Federal Housing Administration or FHA. Although being a first-time homebuyer is not a requirement of an FHA loan, this loan makes a lot of sense for many first-time buyers. FHA loans start with as little as 3.5% down and offer more flexible and lenient credit requirements and underwriting guidelines.

For example, FHA loans have a minimum credit score requirement of 500, whereas conventional loans typically require a 620 credit score. FHA loans also allow you to purchase a multi-unit property with a 3.5% down payment as long as you will be living in one of the units. So hypothetically, you could purchase a 4-plex with just 3.5% down and immediately have three units producing rental income!

Simply put, a refinance is the replacement of your existing mortgage with a new mortgage of different terms. There are two main types of refinances: a “rate and term” refinance and a “cash-out” refinance.

Refinancing does not make sense for every homeowner in every situation. For example, if you already have a very low-interest rate and do not need access to any of your equity, a refinance may not provide you with a tangible benefit. At Elite Mortgage Group, we can help sort out all of your refinance options as well as help you determine whether refinancing would make sense based on your short and long-term goals.