Mortgage, Down Payment and Investment Return Calculator
Loan Types
Conventional Loan
This is the most common, but also lacks some of the advantages of government-insured loans, such as low credit score requirements and no down payment or mortgage insurance. Typically you will need
A score of 660 or better.
Minimum Downpayment of 5% .
Downpayment below 20% will require Private Mortgage Insurance (PMI).
Debt-to-Income ratio of 36% or better
Offer Lower Interest Rates (for borrowers with great credit).
Higher Loan Limits.
Offer Flexibility as they don't need to follow the guidelines set by those government agencies.
Conforming conventional loans follow lending rules set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
FHA Loan
The FHA loan is the most popular government-backed home loan in the country. These low down payment loans are made by qualified lenders and guaranteed by the Federal Housing Administration (FHA)
A score of 500 or better - Offers Loans for Borrowers with Fair Credit.
Minimum Downpayment of 3.5%.
Downpayment below 20% requires upfront premium of 1.75% of the loan amount which can be rolled into your loan.
In addition to the upfront premium, requires monthly premium that is added to your mortgage payments. This fee varies from 0.45% to 1.05% of the loan amount, per year.
VA Loan
VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs.
No minimum Credit Score requirement.
No Minimum Downpayment required.
No Mortgage Insurance (PMI) Requirement.
Competitive interest rates.
Limits the lender's origination fee to no more than 1% of the loan amount and prohibits lenders from charging some closing costs
In 2022, the standard VA loan limit is $647,200 for a single-family home in a typical U.S. county, but can run as high as $970,800 in high-cost areas.
USDA Loan
USDA issues mortgages to applicants deemed to have the greatest need.
For owner-occupied primary residences.
U.S. citizenship (or permanent residency).
Monthly home payment including principal, interest, insurance and taxes should be 29% or less of monthly income.
No credit accounts sent to collections in the last 12 months
No Minimum Downpayment required.
PMI may be required with small or no money down.