FHA Loan
Federal Housing Administration · Government Backed
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government backs it, lenders take on less risk — which means you can qualify with a lower credit score and smaller down payment than a conventional loan requires.
FHA loans are ideal if: you're a first-time buyer, have a credit score below 700, or don't have a large down payment saved up.
📊 Key Numbers at a Glance
3.5%
Min Down Payment (580+ score)
580
Min Credit Score (standard)
500
Min Score with 10% down
43%
Max Debt-to-Income Ratio
$498K
2024 Loan Limit (most areas)
1.75%
Upfront MIP (financed in)
📝 Real Example
Home price: $300,000 · Down payment: $10,500 (3.5%) · Loan: $289,500 · Rate: 6.375% · Monthly P&I: ~$1,807 + MIP ~$200/mo = ~$2,007/mo total.
✅ Pros & ❌ Cons
✅ Pros
- Low 3.5% down payment
- Accepts lower credit scores
- Gift funds allowed
- Easier to qualify
- Seller can pay closing costs
❌ Cons
- Mortgage insurance required
- Loan limits (not for luxury)
- Property must meet FHA standards
- MIP stays for life of loan (if <10% down)
Apply for FHA Loan →
Conventional Loan
Fannie Mae / Freddie Mac · Most Popular
Conventional loans are not government-backed — they follow guidelines set by Fannie Mae and Freddie Mac. They offer more flexibility, higher loan limits, and no lifetime mortgage insurance once you reach 20% equity.
📊 Key Numbers at a Glance
3%
Min Down (first-time buyers)
45%
Max DTI (some exceptions)
$766K
2024 Conforming Loan Limit
~0.5%
Avg PMI Rate (removed at 20%)
📝 Real Example
Home price: $400,000 · Down: $80,000 (20%) · Loan: $320,000 · Rate: 6.875% · Monthly P&I: ~$2,102 · No PMI — saving ~$130/month vs FHA.
✅ Pros
- No PMI with 20% down
- Higher loan limits
- PMI removable later
- Best rates for 740+ credit
- No property restrictions
❌ Cons
- Higher credit score needed
- Stricter qualifying
- PMI required under 20% down
- Less flexibility on credit issues
Apply for Conventional Loan →
VA Loan
U.S. Department of Veterans Affairs · Veterans Only
VA loans are one of the greatest benefits available to U.S. military Veterans, active-duty service members, and surviving spouses. Zero down payment, no PMI, and consistently lower rates than conventional loans.
📊 Key Numbers at a Glance
No PMI
Private Mortgage Insurance
No Limit
Loan Amount (full entitlement)
~620
Typical Min Credit Score
2.15%
VA Funding Fee (first use)
📝 Real Example
Home price: $350,000 · Down: $0 · Loan: $357,525 (incl. funding fee) · Rate: 6.25% · Monthly P&I: ~$2,202 · No PMI saves ~$150/month vs FHA.
✅ Pros
- Zero down payment
- No PMI ever
- Competitive rates
- Easier qualifying
- Can use multiple times
❌ Cons
- Veterans/military only
- VA funding fee required
- Property must meet VA standards
- Primary residence only
Apply for VA Loan →
DSCR Loan (Investment)
Debt Service Coverage Ratio · No Tax Returns Needed
DSCR loans are designed for real estate investors. Instead of qualifying based on your personal income and tax returns, the lender looks at the rental income the property generates. If the rent covers the mortgage, you can qualify.
DSCR Formula: Monthly Rent ÷ Monthly PITI Payment = DSCR. A ratio of 1.0 means rent covers mortgage. Most lenders want 1.0–1.25 or higher.
📊 Key Numbers at a Glance
20-25%
Typical Down Payment
640+
Typical Min Credit Score
No W2s
No Personal Income Docs
LLC OK
Can Close in Business Name
Unlimited
Number of Properties
📝 Real Example
Property value: $300,000 · Down: $75,000 (25%) · Loan: $225,000 · Monthly mortgage (PITI): $1,650 · Monthly rent: $2,100 · DSCR: 1.27 ✓ Qualifies!
✅ Pros
- No personal income needed
- No tax returns required
- Close in LLC name
- Scale your portfolio
- Fast approval process
❌ Cons
- Higher down payment (20-25%)
- Slightly higher rates
- Investment property only
- Strong credit score needed
Apply for DSCR Loan →
Cash-Out Refinance
Access Your Home Equity
A cash-out refinance replaces your existing mortgage with a new, larger one — and you receive the difference in cash. It's a way to convert the equity you've built in your home into usable money, often at a much lower rate than credit cards or personal loans.
📊 Key Numbers at a Glance
80%
Max LTV (Conventional)
6–12 mo
Must Own Before Cash-Out
Any Use
No Restrictions on Funds
📝 Real Example
Home value: $450,000 · Current loan: $250,000 · Max new loan (80%): $360,000 · Cash received: $110,000 · New rate: 6.875% · New payment: ~$2,371/mo
✅ Pros
- Access large lump sum
- Much lower rate than credit cards
- Use for anything
- May be tax deductible
- One simple payment
❌ Cons
- Increases loan balance
- Higher monthly payment
- Closing costs apply
- Risk of foreclosure if unable to pay
Check My Cash-Out Options →
ITIN / Foreign National Loan
International Buyers Welcome · No SSN Required
If you don't have a U.S. Social Security number, you may still be able to buy a home in America using your Individual Taxpayer Identification Number (ITIN). These special loan programs were designed for non-U.S. citizens who have established financial ties in the U.S.
This is especially popular with Turkish and other international families who live, work, or invest in the United States.
📊 Key Numbers at a Glance
15-25%
Typical Down Payment
ITIN
No Social Security Needed
2yr
U.S. Credit/Banking History
640+
Typical Credit Score Needed
Primary
or Investment Property
TR 🇹🇷
Turkish Buyers Served
📝 Who Qualifies?
You may qualify if you: have an active ITIN number, have 2+ years of U.S. banking or credit history, can document your income (U.S. or foreign), and have at least 15–25% for a down payment.
✅ Pros
- No SSN required
- Own U.S. real estate
- Build U.S. wealth
- Turkish specialist on hand
- Primary or rental allowed
❌ Cons
- Higher down payment
- Slightly higher rates
- Fewer lenders offer this
- More documentation needed
Ask Ethan About ITIN Loans →
First Time Home Buyer Programs
Texas & Houston Programs · Down Payment Assistance
Buying your first home is exciting — but the down payment can feel overwhelming. Good news: Texas has several assistance programs that can give you money toward your down payment and closing costs. You don't pay it back!
📊 Texas Programs Available
TSAHC
Up to 5% down payment grant
MCC
Mortgage Credit Certificate — tax credit
TDHCA
Texas Dept of Housing assistance
Houston
City of Houston HAP Program
FHA 3.5%
Low down payment + assistance
620+
Typical Credit Score Needed
📝 Real Example — TSAHC Program
Home price: $280,000 · Normal 3.5% down: $9,800 · TSAHC grant (5%): $14,000 · You owe: $0 at closing! The grant covers your down payment AND closing costs.
✅ Programs Help With
- Down payment assistance
- Closing cost assistance
- Annual tax credits (MCC)
- Low interest rates
- Combined with FHA/Conv
📋 Typical Requirements
- First-time buyer (or no home in 3yr)
- Income limits apply
- Home price limits
- Homebuyer education course
See If You Qualify →
Jumbo Loan
Above $766,550 · Luxury & High-Value Homes
A jumbo loan is any mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac ($766,550 in most areas for 2024). These loans require stronger credit and larger down payments, but offer competitive rates for well-qualified buyers.
📊 Key Numbers at a Glance
$766K+
Loan Amount (above conforming)
10-20%
Down Payment Required
700+
Credit Score Typically Required
12 mo
Cash Reserves Required
📝 Real Example
Home price: $1,200,000 · Down: $240,000 (20%) · Loan: $960,000 · Rate: 7.125% · Monthly P&I: ~$6,470 · Requires strong income documentation and credit history.
✅ Pros
- Finance luxury homes
- Competitive rates
- Interest-only options available
- Single loan (no piggyback)
❌ Cons
- Stricter qualification
- More reserves required
- Larger down payment
- More lender scrutiny
Apply for Jumbo Loan →
