BUYERS

Types of Loans

USDA

Pros: Zero-Money Down, inexpensive mortgage insurance, better rates, single family only, must be owner occupied
Cons: Location Specific, Income Restrictions, House Condition  Must Qualify, no multi-family or mixed use options 

VA (must be a Veteran)

Pros: Zero-Money Down, better rates, no monthly mortgage insurance, 1-4 unit properties, must be owner occupied
Cons: House Condition  Must Qualify, require seller paid for pest inspection 

RI HOUSING (FHA)

Pros: Zero-Money Down, Down Payment Assistance Program, Closing Cost Assistance Program, more purchasing power with higher debt to income rations, 1-4 unit properties, must be owner occupied
Cons: Longer closing time (usually 45-60 days), House condition must qualify 

RI HOUSING (CONVENTIONAL)

Pros: Additional MCC tax credit (first time home buyer), Down Payment Assistance Program, Possible Zero-Money Down solution, discounted PMI versus regular conventional, 1-4 unit properties, must be owner occupied
Cons: Lower Debt to income ratio, May require higher credit score 

CONVENTIONAL

Pros: Additional MCC tax credit (first time home buyer), as little as 3% down, the condition of home can be more forgiving then on FHA and government style loans, 1-4 unit properties, owner occupied or investment
Cons: PMI is higher with lower credit scores, stricter buyer requirements / conditions 

INVESTMENT LOAN

Pros: 1-4 Unit financing, no income verification, rents used to qualify, 20-30% down.
Cons: No owner occupied, 20-30% down, higher interest rate. 

PRIVATE / HARD MONEY

Pros: Little to no documentation needed. Quick close. “CASH BUY”. Condition of property is not a factor of appraisal, purchase with no appraisal possible.
Cons: shorter terms, higher interest rates, must pay points at closing, subject to lender project approval. Properties purchased with Private / Hard Money are subject to FHA blackout period when reselling. Can NOT be owner occupied. 

Dont forget to tell your new lender that 36d5 Realty referred you!