Generations FCU Types of Mortgages

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What is a Conventional Loan?

A conventional loan is a type of mortgage that is not part of a specific government program, such as Federal Housing Administration (FHA), Department of Agriculture (USDA) or Department of Veterans Affairs (VA) loan programs. However, conventional loans are commonly interchangeable with “conforming loans,” since they are required to conform to Fannie Mae’s underwriting requirements and loan limits.

Benefits of a Conventional Mortgage with GFCU:

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3% Down Payment – A GFCU Conventional Mortgage requires a minimum 3% down payment, whereas a non-GFCU FHA Mortgage requires a 3.5% down payment.

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Flexible Mortgage Insurance - Mortgage insurance is only required if you put less than 20% down; you can qualify for MI removal once you reach 20% equity in your home. A Non-GFCU FHA Mortgage requires mortgage insurance for the life of the loan.

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Multiple Uses – You can get pre-qualified today for a primary residence, a second home, or an investment property. A non-GFCU FHA Mortgage is only available for a primary residence. All approvals are subject to credit and underwriting requirements.

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Jumbo Mortgage Option Available.

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15 and 30-Year Terms Available.

What is a VA Loan?

Veterans Administration (VA) Loans are for U.S. service members and veterans. It can sometimes be difficult for service members to establish the level of credit necessary to qualify for a home loan. To make homeownership more attainable, the Department of Veterans Affairs established the VA Home Loan, which guarantees a portion of the loan and enables us to provide you with more favorable loan terms.

What are the advantages of a VA Loan?

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Eligible homebuyers are not required to have a down payment in most cases - typically cited as the greatest VA loan benefit ( Up to 100% financing).

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No monthly mortgage insurance premiums or PMI to pay.

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Lower average interest rates than other loan types. VA loans continue to have the lowest average interest rates of all loan types.

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No prepayment penalties. VA buyers can pay off a loan early without any financial penalties.

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Terms up to 30 years for purchase or refinance.

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Up to 100% financing and can include funding fee if required.

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