Loan Types

Conventional Loans

Primary Home

A property in which one resides for at least 6 months and 1 day per year.  It is a residence that should be homesteaded (if county / state allows for) in order to take advantage of a lower real estate tax rate. Fannie Mae / Freddie Mac Conforming Loan –  Applies to Single Family, Town Home / Condo-  All require a minimum credit score of 620 and at least 3% down payment – No prepayment penalties. If placing less than 20% down, mortgage insurance will be required. If placing only 3% down, borrower must not have owned a home in the past 3 years. 2/3/4 unit dwellings are also financeable – However, down payments will differ.

Secondary or Vacation Home

A property which will be occupied less than 6 months out of the year. Fannie Mae / Freddie Mac Conforming Loan-  Applies to Single Family, Town Home / Condo –  All require a minimum credit score of 620 and at least 10% down payment – No prepayment penalties.

Investment Property

A property which is not your primary or secondary residence and is purchased or used in order to generate income.  Basically, if you purchase real estate that will be used to make a profit, rather than used as a personal residence for you and your family, that property is considered to be an investment property.

Government Loans

Federal Housing Administration

Applies to Single Family, Town Home / Condo (Condo must be on the FHA approve list in order to be financeable)  – All require a minimum credit score of 580 and at least 3.50% down payment – No prepayment penalties. Mortgage Insurance is required on FHA loan regardless of down payment.


In a FHA loan, the Federal Housing Administration insures the mortgage. FHA loans typically come with competitive interest rates, smaller down payments and lower closing costs than conventional loans. If you have a credit score of 580 or higher, you could be eligible for a mortgage with a down payment as low as 3.5 percent of the purchase price. If your credit score is lower than 580, you still might qualify for an FHA mortgage, but the down payment would be at least 10 percent of the purchase amount.

FHA Section 203(K)

This type of loan, backed by the FHA, takes into consideration the value of the residence after improvements have been made. It then lets you borrow the funds you’ll need to carry out the renovation project and includes them in your main mortgage. The down payment for a 203(k) loan can be as low as 3.5 percent

FHA Section 203(H)

The FHA 203(h) program is a special mortgage insurance program to assist disaster victims whose previous residence has been destroyed or damaged to such an extent that replacement is necessary.- Can go up to 100% financing


The U.S. Department of Veterans Affairs (VA) helps active-duty military members, veterans and surviving spouses buy homes. VA loans come with competitive interest rates and require no down payment. You aren’t required to pay for monthly mortgage insurance, and a VA loan allows for lower credit scores with competitive rates.

Jumbo Loans & Alternative

Jumbo Loans

Any loan above the Fannie Mae / Freddie Mac Loan Limit and or above the Fannie Mae High Balance Loan Limit- These loans have their own specific underwriting criteria which are typically more rigorous than a standard Fannie Mae / Freddie Mac Loan


Also referred to as “Non-QM”

A loan whereby the borrower does not fit into conventional underwriting guidelines. i.e. Recent negative credit history, loan amount is too high, income from borrower based on standard calculations is not sufficient to meet mortgage payments, etc. In this case, we have Alternative Loan Products available. Rates are typically higher and terms are not as advantageous as the standard Fannie Mae / Freddie Mac product.

Have Questions?

Give us a call at 561-395-7241 or Provide your information and one of our loan officers will contact you directly.

2499 Glades Road | Suite 304 | Boca Raton, FL | 33431

Phone: 561-395-7241

Licensed in FL | NMLS # 384897