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Mortgage Loans Guide
Complete guide to home financing in the US
Types of Mortgage Loans
Conventional Loans
Not backed by government. Requires 5-20% down payment.
- Conforming loans (≤ $766,550 in 2024)
- Jumbo loans (> $766,550)
- PMI required if down payment < 20%
FHA Loans
Federal Housing Administration backed. 3.5% down minimum.
- Lower credit score requirements (580+)
- Mortgage insurance premium (MIP) required
- Loan limits vary by county
VA Loans
Veterans Affairs guaranteed. No down payment required.
- Available to eligible veterans and service members
- No PMI, but funding fee applies
- Competitive interest rates
USDA Loans
Rural development loans. 0% down in eligible areas.
- Must be in USDA-eligible rural areas
- Income limits apply
- Guarantee fee required
Mortgage Process Steps
Pre-approval
Get pre-approved to understand your budget. Lender verifies income, assets, and credit.
House Hunting
Search for homes within your pre-approved amount. Consider location, schools, and future resale value.
Make an Offer
Submit purchase offer with financing contingency. Negotiate terms with seller.
Formal Application
Complete mortgage application with chosen lender. Submit all required documentation.
Processing & Underwriting
Lender verifies all information. Home appraisal and title search conducted.
Closing
Final loan approval, sign documents, transfer funds, and receive keys.
Mortgage Requirements
Credit Score
- Conventional: 620+
- FHA: 580+
- VA: 580+ (lender dependent)
- USDA: 640+
Debt-to-Income Ratio
Generally ≤ 43% of gross monthly income, though some programs allow higher ratios.
Down Payment
- Conventional: 5-20%
- FHA: 3.5%
- VA: 0%
- USDA: 0%
Auto Loans Guide
Financing your vehicle purchase
New vs. Used Car Financing
| New Cars | Used Cars | |
|---|---|---|
| Interest Rates | Lower (4-7%) | Higher (6-12%) |
| Loan Terms | Up to 84 months | Up to 72 months |
| Down Payment | 0-20% | 10-20% |
| Depreciation | High (20% first year) | Lower |
Where to Get Auto Loans
Banks & Credit Unions
- Often offer best rates
- Pre-approval available
- Relationship benefits
Dealer Financing
- Convenient one-stop shopping
- Manufacturer incentives
- May have higher rates
Auto Loan Tips
Smart Financing Strategies
- Get pre-approved before shopping
- Consider total cost, not just monthly payment
- Don't extend loan terms unnecessarily
- Make a substantial down payment (20%+)
- Check your credit score beforehand
- Compare offers from multiple lenders
Factors Affecting Auto Loan Rates
- Credit Score: 720+ gets best rates
- Loan Term: Shorter terms = lower rates
- Vehicle Age: Newer = better rates
- Down Payment: More down = lower rate
- Income: Higher income = better terms
Personal Loans Guide
Unsecured financing for life's needs
Common Uses for Personal Loans
Home Improvements
Kitchen, bathroom, or major repairs
Debt Consolidation
Combine high-interest debts
Medical Expenses
Unexpected healthcare costs
Personal Loan Requirements
| Requirement | Typical Range | Best Rates |
|---|---|---|
| Credit Score | 580-850 | 720+ |
| Annual Income | $30,000+ | $50,000+ |
| Debt-to-Income | ≤ 40% | ≤ 30% |
| Employment | 2+ years | 2+ years stable |
Personal Loan vs. Credit Cards
Personal Loan Advantages
- Fixed interest rate
- Predictable payments
- Lower rates than credit cards
- Forced payoff date
Credit Card Advantages
- Revolving credit line
- Rewards programs
- 0% intro APR offers
- Build credit with responsible use
Business Loans Guide
Funding your business growth
Types of Business Loans
SBA Loans
Small Business Administration guaranteed loans
- 7(a) loans: Up to $5M for various purposes
- 504 loans: Real estate and equipment
- Microloans: Up to $50K for startups
Equipment Financing
Loans secured by business equipment
- Equipment serves as collateral
- Lower rates than unsecured loans
- Terms match equipment life
Business Lines of Credit
Revolving credit for cash flow needs
- Only pay interest on amount used
- Flexible access to funds
- Good for seasonal businesses
Commercial Real Estate
Loans for purchasing business property
- Property serves as collateral
- Typically 20-25% down payment
- 10-25 year terms common
Business Loan Requirements
- Business Plan: Detailed plan with financial projections
- Credit Score: Personal (680+) and business credit
- Time in Business: Usually 2+ years
- Annual Revenue: Varies by loan type ($50K-$250K+)
- Cash Flow: Positive cash flow history
- Collateral: May be required for larger loans
- Personal Guarantee: Often required
Preparing Your Application
Required Documentation
- Business and personal tax returns (3 years)
- Financial statements (P&L, balance sheet)
- Bank statements (6-12 months)
- Business plan and cash flow projections
- Legal documents (articles of incorporation, etc.)
- Personal financial statement
- List of business debts and collateral