Home Loans

So, now you have a pretty good idea of how much home you can afford to purchase – what the banks look for in prequalifying you.  Let’s review some of the more common and typical home loans.

CONVENTIONAL LOAN:  From as high as 97 percent of the purchase price can be financed by a bank.

  • 97% financing – Available only to the first time home buyer. There is a limit on the purchase price – no MacMansion.
  • 90% fianancing – Available also to the first time home buyer. Purchase price as high as the mid $600,000.
  • 80% and below – Available also to the first time home buyer. Yes, buy your MacMansion! Private Mortgage Insurance NOT required.

USDA RURAL DEVELOPMENT LOAN:  100% financing – no downpayment required! However, Buyer still needs some money ready for upfront expenses – earnest deposit, home inspection, survey, appraisal, loan application fee… There is, however, an income limit and a lot size limit.

VA LOAN:  100% financing with no downpayment required.  All full-time service members – active and retired – are eligible for this benefit.  Reserve service members have to meet a service time period.  For Guam, the maximum purchase price can be as high as $636,150.  VA members may also use this loan benefit to purchase a residential investment property – a 4-unit apartment building – but you have to occupy one of the units.



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