Conventional loans make for the bulk of the loan origination pipeline, yet two stalwarts that are not considered conventional still provide a stellar product for those who qualify—VA and FHA mortgages.
In Austin and surrounding areas, the FHA loan limit is $389,850, and the maximum VA mortgage is the same as conforming ones, $417,000.
FHA loans require as little as 3.5 percent down, and although more first time borrowers use the FHA program more than any other loan type, anyone can use the program.
VA loans require nothing down, and have reduced closing costs with no monthly mortgage insurance premium.
Both loans are backed by the government, which means that as long as the loan was underwritten using proper approval procedures, the lender is compensated for the loss. In the event of a VA loan, 25% of the loan amount is guaranteed, while the FHA loan provides full compensation to the lender for a loss due to foreclosure.
Interested? Apply today.