Type Of Loan |
Benefits |
Drawbacks |
Fannie Mae "My Community" |
Lower rates for mortgage insurance coverage |
Must have proveable income |
Freddie Mac "Home Possible" |
only 500 |
Home must fall in target areas |
Rates usually similar to Fannie Mae/Freddie Mac |
Some income caps per region |
Can be used to refinance for lower payment |
No Cash Out for refinances |
Veterans Administration |
No monthly mortgage insurance payment |
Must be an elligable veteran |
Rates Similar to Fannie/Fredddie Mac |
Funding Fee Added on to loan |
FHA |
Financed MI coverage |
Must meet certain income requirements |
Not credit score driven |
|
Gifting Allowed for portions of down payment |
Dream Maker |
Similar to My Community/Home Possible |
rates may be slightly higher than My Community |
with less restrictive income guidelines for higher incomes |
somewhat more restrictive for lower credit scores |
Wider scope of elligible properties |
|
seller can contribute up to 6% closing costs |
Alt A (Sub-Prime) |
Wider Ranges of credit scores |
Higher Rates than most of the above programs |
No upper income limits |
Usually an adjustable |
Sometimes will finance without payoff of collections or |
Usually contain pre-payment penalties |
smaller judgements etc |
