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Today we're going to talk about the loans most commonly seen in a residential real estate transaction.

The first is a conventional loan. This allows for as little as a 3% down payment. Mortgage insurance is required if the loan value is more than 80%. Business assets can be used for closing funds only, gifts can be used for down payment, and your credit documents are good for 120 days. We want to make sure that the whole time that we're in a real estate transaction, that we don't make any large financial decisions such as furniture purchases, cars, timeshares, vacations, no extra money on the credit cards, because it will need to be reverified along with your employment before a loan closes.

On an FHA loan, you can have a down payment as little as 3.5% and the credit documents are good for 120 days as well. On a VA loan, no money is needed down. There is no mortgage insurance, and the credit documents are good for 120 days. On a USDA loan, no money down, and a septic system, you will need to have an inspection on that. So these are the kinds of loans that we see most commonly in a real estate transaction in today's market.

Please call Gina Mullen with Gina Mullen Realty, and we can hook you up with a preferred lender who will be able to give you all the information you need.