Loan Options

0% DOWN (100% LOANS)

CONVENTIONAL LOANS:

  • DOWN: Minimum 5% down payment (down payment can be from own funds, gifted)
  • DTI: Maximum 43% Debt-to-Income ratio (qualify for less compared to FHA)
  • CREDIT: Credit Scores have a large bearing on the interest rate (higher the score, lower the rate)
  • MORTGAGE INSURANCE: most reasonably priced, based on down payment, no UFMIP (up front mortgage insurance)
  • DEROGATORY CREDIT: no bankruptcy for min. 4-6 years; no foreclosures for min. 5-7 years

FHA LOANS:

  • DOWN: Minimum 3.5% down payment (down payment can be from own funds, gifted, Utah Housing)
  • CREDIT: Credit Scores Standards not as sensitive to FICO scores as Conventional loans
  • MORTGAGE INSURANCE: more expensive monthly; FHA does charge 1.75% as UPMIP (up front mortgage insurance premium)
  • DEROGATORY CREDIT: Ch.7 Discharge (2 yrs. removed); Ch. 13 (open – 12 month payment history); foreclosure: 3 years from the date of Trustee’s Sale

VA LOANS (eligibility):

  • 181 days of service during peacetime (active duty)
  • 90 days of service during wartime
  • 6 years of service in Reserves or National Guard
  • Spouse of a Service Member lost in the Line of Duty
  • DOWN: 0% down payment required