Capital Homes Blog

April 25, 2015 : Financing Tips

Which Home Loan is Best for Me?
When you don’t have someone to help guide you through the home buying process, shopping for a home mortgage loan can incredibly intimidating and confusing. It doesn't have to be. While there are many options on the market, it really comes down to your financial picture, goals and abilities. These are the most common loans we are currently seeing, and the pros and cons for each.

FHA
Insured by the Federal Housing Administration, FHA loans are often an attractive option for first time home buyers due to their attractive interest rates and flexible qualification requirements.

  • Down Payment Minimum:  3.50%
  • Minimum Credit Score at Time of Closing*: 600
  • Funding Fee /MIP:  1.75%
  • Monthly Mortgage Insurance:  0.85%
  • Maximum Loan Amount:  $271,050

Bond/OHFA
Designed for low-to-moderate income individuals and families, the Oklahoma Housing Finance Agency Advantage offers home loans through participating lenders all across Oklahoma.

  • Down Payment Minimum:  0%
  • Minimum Credit Score at Time of Closing:  640
  • Funding Fee /MIP:  1.75%
  • Monthly Mortgage Insurance:  0.85%
  • Maximum Loan Amount:  $271,050

USDA-RD
Often sought for their 0% down requirements, rural development loan applicants must meet certain income requirements and are only available in designated rural and suburban neighborhoods.

  • Down Payment Minimum:  0%
  • Minimum Credit Score at Time of Closing :  640
  • Funding Fee/MIP:  2%
  • Monthly Mortgage Insurance:  0.50%
  • Maximum Loan Amount:  No Max

Section 184
This loan is specifically designed for American Indian and Alaska Native families, Alaska Villages, Tribes, or Tribally Designated Housing Entities.

  • Down Payment Minimum:  2.25%
  • Minimum Credit Score at Time of Closing:  620
  • Funding Fee /MIP:  1.5%
  • Monthly Mortgage Insurance:  0.15%
  • Maximum Loan Amount:  $271,050

VA
Guaranteed by the U.S. Department of Veterans Affairs, VA loans are available to American veterans or their surviving spouses, provided they do not remarry.

  • Down Payment Minimum:  0%
  • Minimum Credit Score at Time of Closing:  600
  • Funding Fee /MIP:  1.25%-3.3%
  • Monthly Mortgage Insurance:  None
  • Maximum Loan Amount:  $417,000

Conventional
Conventional fixed rate interest loans, meaning the interest rate doesn’t fluctuate throughout the life of your loan, are provided in either 15 or 30- year terms. A shorter-term loan usually results in a lower interest rate, but overall, interest rates are generally lower than FHA and VA loans.

  • Down Payment Minimum:  3%
  • Minimum Credit Score at Time of Closing:  620
  • Funding Fee /MIP:  Varies by FICO. Read more about how this is calculated here
  • Monthly Mortgage Insurance:  None if you put 20% down. This is based on a ratio of your loan to the value of the home you are purchasing.
  • Maximum Loan Amount:  $417,000

*These scores can often be achieved within the time it takes to build your home! Learn more here

This blog only provides a snapshot of these funding options. Get in touch today and we can talk through your needs and goals. We are here to help!

About Capital Homes

About Capital Homes

Capital Homes has always valued trust as the foundation of its business. We strive to create a strong, trusting relationship with each customer and approach decisions with a sense of fairness as a guiding light. For this reason, we long ago adopted “We Build Trust” as our motto.