Loan Options
Tired of spending hours researching loans only to feel more confused than when you started? You’re not alone. But with our expert loan officers by your side, that stress ends here. We break down your options clearly, guide you through every step, and make the loan process simple, transparent, and headache-free.
Fixed Rate
Your interest rate stays locked in for the entire life of your loan—no surprises. Choose a term that fits your goals, from 10 to 30 years, whether you’re buying a new home or refinancing an existing one.
ADVANTAGES
- Enjoy a fixed interest rate—no surprise adjustments.
- Open to all qualified borrowers.
- Provides stability and peace of mind with predictable monthly payments.
Conventional
Conventional loans are ideal for borrowers with a minimum FICO score of 620. First-time homebuyers can qualify with as little as 3% down, while returning buyers typically need at least 5%. Unlike government-backed programs, conventional loans are not insured by any federal agency.
ADVANTAGES
- No mortgage insurance required with a 20% or higher down payment
- Flexible appraisal standards compared to other loan types
- Financing available for investment properties
- No upfront mortgage insurance premiums
FHA Mortgage
FHA loans are backed by the Federal Housing Administration, offering protection to lenders in case of payment defaults. These loans make homeownership more accessible by providing more flexible qualification guidelines, especially for first-time buyers and those with lower credit scores.
ADVANTAGES
- Minimum FICO credit score of 580 required
- Down payment as low as 3.5%
- FHA refinance closing costs can be rolled into the loan
- Previous bankruptcy doesn’t automatically disqualify you
USDA Mortgage
USDA loans, backed by the U.S. Department of Agriculture, help make homeownership more accessible in eligible rural and suburban areas. To qualify, the property must be in a USDA-approved location, and your household income must fall within the program’s set limits.
ADVANTAGES
- Minimum FICO credit score of 640 required
- Eligible for 100% financing—no down payment needed
- Option to roll closing costs into the loan amount
Reverse Mortgage
Designed for homeowners aged 62 and older, a reverse mortgage lets you tap into your home’s equity to support your retirement goals. You can choose to receive the funds as a lump sum, monthly payments, or a line of credit—while continuing to live in your home.
ADVANTAGES
- No monthly mortgage payments required
- Access funds for needs like home renovations, retirement income, and more
- May help prevent foreclosure on an existing mortgage
Veteran’s Loan
Backed by the U.S. Department of Veterans Affairs, VA loans offer eligible veterans and their spouses a more affordable borrowing option compared to conventional programs. At Loan Velocity, we’ll help you obtain your Certificate of Eligibility directly through the VA. A minimum FICO credit score of 620 is required to qualify.
ADVANTAGES
- No mortgage insurance required
- No down payment required in most cases
- VA loan benefits can be used multiple times
Jumbo Loan
A jumbo mortgage is designed for single-family home loans exceeding $806,500. Like conventional loans, jumbo mortgages require strong credit—typically a FICO score of 680 or higher—to qualify.
ADVANTAGES
- Low down payment options—typically between 5% to 10%
- Competitive interest rates, often lower than standard conventional loans
Rate/Term Refinance
This is the most straightforward type of refinance. By evaluating your current credit score, debt-to-income ratio, monthly payments, and your home’s appraised value, we can determine if replacing your existing mortgage with a new one offers better terms and improved financing.
ADVANTAGES
- The right rate and terms can save you hundreds on your monthly mortgage payment
- Opportunity to shorten your loan term—like moving from a 30-year to a 15-year mortgage
- Potential to reduce or eliminate mortgage insurance altogether
Cash Out Refinance
A cash-out refinance is a smart choice for those looking to consolidate and eliminate high-interest debt like credit cards or auto loans. But it’s not just for debt—many homeowners also use it to fund home renovations and upgrades.
ADVANTAGES
- All cash received from a cash-out refinance is tax-free
- Mortgage rates are typically lower than credit card and personal loan rates
- Using your home’s equity to pay off high-interest debt can be a faster, more cost-effective solution
