BUY REMODEL RESOURCES ABOUT APPLY LOGIN TPO Loan programs Amerifirst offers many different types of loans, along with the knowledge and experience to explain each one and tailor it to your needs. You can read more about each of our loan options here. Conventional A conventional loan is not associated with the FHA, USDA, or VA. It generally requires at least 5% down (though it can be as low as 3% for some buyers), but private mortgage insurance (PMI) is required for down payments of less than 20%. Paying PMI will add to the cost of your monthly payments. Pros No PMI required if down payment is 20% or more Larger down payments may help build home equity earlier Cons PMI is required for down payments under 20% More difficult requirements for income and credit score Uses Available for most types of property, including second home and investment properties LEARN MORE FHA Because FHA loans are insured by the Federal Housing Administration (FHA), it’s easier to qualify for them. That makes them attractive to first-time buyers, borrowers with low to moderate incomes, and buyers with lower credit scores or higher debt-to-income ratios. FHA loans also tend to have lower down payments (as low as 3.5%), lower monthly insurance premiums, and often lower closing costs. Pros Easier requirements for income and credit score Minimum down payment: 3.5% Mortgage Insurance Premium may be less costly than PMI Lower closing costs Seller can contribute up to 6% of sale price to help cover closing costs. Cons MIP required Uses Buy, build, or refinance houses, approved condos, modular homes, and manufactured homes with pre-approval LEARN MORE VA Offered as a benefit to active and retired U.S. military personnel, VA loans are guaranteed by the U.S. Department of Veteran Affairs. Like FHA loans, they are easier to qualify for (if you are an eligible veteran) and have lower costs and more liberal terms. Pros Easier requirements for income and credit score No down payment Lower closing costs Interest rates may be negotiable Cons Must be an eligible veteran or unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability VA Funding Fee may be required Uses Purchase, construction, or energy-saving improvement (approved by lender and VA) of a home LEARN MORE USDA Rural Development Guaranteed by the United States Department of Agriculture (USDA), these loans offer an affordable way to purchase property in rural neighborhoods. These are non-urban areas, but often include villages or small towns near bigger cities. The loan term is a 30-year fixed-rate mortgage. Pros No down payment Allows for non-traditional credit Lower closing costs, with no limit on contributions from seller or gift money Cons Must meet USDA location standards USDA Guarantee Fee is required Uses Owner-occupied single family housing LEARN MORE FHA Standard 203(k) Home Improvement Insured by the Federal Housing Administration (FHA), the Standard 203(k) covers repairs of more than $35,000, including structural work. You can borrow funds to pay for upgrades, to reconstruct a home that is currently unlivable, or to tear down an existing structure and build a new one on some portion of the existing foundation. Allowable improvements include structural alterations and reconstruction, major landscaping, and site improvement. Pros Minimum 3.5% down payment Borrow up to 96.5% of projected value after improvements are done Cons Mortgage Insurance Premium (MIP) required Primary residence, owner-occupied homes only Uses Improvements for your current house or a fixer-upper that you buy LEARN MORE FHA Limited 203(k) Home Improvement Also insured by the Federal Housing Administration (FHA), the Limited 203(k) is designed for repairs costing less than $35,000. You can borrow funds to replace carpet, repaint, or buy new appliances. Structural work, landscaping, and luxury items like hot tubs and tennis courts are not allowable. Pros Low 3.5% down payment Borrow up to 96.5% of projected value after improvements are done Cons Mortgage Insurance Premium (MIP) required Allowable items are limited Uses Improvements for your current house or a fixer-upper that you buy LEARN MORE HomeStyle® Renovation This loan is designed for buyers who want to buy a home and fix it up, or homeowners who want to remodel. The only restrictions are that repairs or improvements must be permanently affixed and add real value to the property. Pros Minimum 5% down payment (10% down for second homes) Wide range of uses Gift funds can be used for a portion of down payment and closing costs Cons PMI required for down payment under 20% Uses Purchase, refinance, or remodel LEARN MORE Send an email customercare@amerifirst.com Call us 800.466.5626 Get started Apply online today CONTACT US BRANCH LOCATOR CAREERS PRESS PAY MY FEES PAYMENT ASSISTANCE NMLS Consumer Access | Email and Financial Privacy | Licensing Cyber Security Equal Housing Lender A division of Amerifirst Financial Corporation 950 Trade Centre Way, Suite 400 Kalamazoo, MI 49002 NMLS ID #110139 This is not a commitment to lend. Not all borrowers will qualify; contact us for more information on fees and terms. © 2018. All rights reserved.