| FHA Loan |
VA Loan |
- Streamlined refinances
- Available for a variety of loan terms
- Typically requires mortgage insurance
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- Streamlined refinances
- Financing for eligible service members
- One-time VA funding fee typically required
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Features
- Available in a variety of fixed-rate and adjustable-rate loan options.
- May allow you to use a gift or grant for all or a portion of your closing costs.
- Current FHA homeowners may be able to obtain an FHA streamline refinance.
- You typically have to pay upfront and monthly FHA Mortgage Insurance premium.
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Features
- Provides financing for qualified veterans, reservists, active duty personnel, or eligible family members.
- Available in a variety of fixed-rate and adjustable-rate loan options.
- Allows closing costs to come from a gift or grant.
- Gives current VA homeowners the possibility of getting a VA-to-VA refinance.
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Benefits
- Requires less cash upfront for your down payment and closing costs.
- Available for all income levels.
- Allows a new buyer to take over the loan if you sell your home (subject to loan approval).
- Provides reduced paperwork if you're eligible for an FHA Streamline Refinance.
- A co-applicant can help you qualify even though they do not live in the home.
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Benefits
- Provides a wide range of rate, term and cost options.
- Doesn't require monthly mortgage insurance.
- Provides reduced paperwork if you're eligible for a VA-to-VA Interest Rate Reduction Refinance Loan (IRRRL).
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Considerations
- Be certain to ask your home mortgage consultant to help you compare the overall costs of all products, including the monthly and long-term costs and conditions of the required mortgage insurance.
- You can typically only have one FHA mortgage at any given time.
- In many instances, you may find FHA to be a more expensive financing option and should be considered after thoroughly evaluating all other product options that meet your credit qualifying and financial needs.
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Considerations
- You typically pay a one-time VA Funding Fee that can be financed into the loan amount.
- You can get financing for your primary residence only.
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