TYPES OF LOANS
FHA Loans
An FHA loan is insured by the Federal Housing Administration, a part of the U.S. Department of Housing and Urban Development (HUD).
Designed to make homeownership more accessible, especially for first-time homebuyers, these loans typically require a lower minimum down payment, often as low as 3.5%.
They also tend to have more flexible credit score requirements compared to conventional mortgages, making them a viable option for borrowers with less-than-perfect credit.
While beneficial for easier qualification, FHA loans require both upfront and annual mortgage insurance premiums, regardless of the down payment amount, for the life of the loan in most cases.
Conventional Loans
A conventional loan is a mortgage not backed or insured by a government agency like the FHA or VA. These loans are offered by private lenders and generally require stronger borrower qualifications.
Typical requirements include minimum credit scores, usually 620 or above, and often a larger down payment, usually 5% down or above.
If the down payment is less than 20% of the home’s purchase price, private mortgage insurance (PMI) is usually required, which can be canceled once the borrower reaches 20% equity.
Conventional loans offer more flexibility in loan terms and property types compared to government-backed options.
ITIN Loans
An ITIN loan is a specialized mortgage product designed for individuals who do not have a Social Security Number (SSN) but possess an Individual Taxpayer Identification Number (ITIN).
These loans cater to non-US citizens or resident aliens who file taxes using an ITIN. While requirements vary by lender, ITIN loans allow borrowers to achieve homeownership by demonstrating their financial stability and tax-paying history through alternative means.
They often require a larger down payment, our ITIN options start at 15% down.
Investment Loans
An investment property loan is used to finance the purchase of real estate that is not intended to be the borrower’s primary residence, such as rental properties.
Although they have stricter qualification criteria (down payments often 20% or more, higher credit score, and cash reserves), you will not need to demonstrate a high income, instead, Lenders evaluate the property’s potential rental income, giving you higher flexibility to shop.
CMI: Serving Connecticut
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CREARTH Mortgage does not make any mortgage loan commitments nor funds any mortgage loans. Registered Mortgage Broker- CT Mortgage Broker Only, Not a Lender or Correspondent Lender. Licensed by the Connecticut Department of Banking. All Loans Arranged Through 3rd Party Providers. NMLS #2333544
