Fixed Rate Mortgages

The required down payment varies depending on the loan program:

• Conventional Loans: Typically require a minimum down payment of 3% to 5%.
• FHA Loans: Require as little as 3.5% down.
• VA and USDA Loans: Often offer zero down payment options for eligible borrowers.
• Jumbo Loans: Generally necessitate a higher down payment, often around 20% or more.

Each program has specific eligibility criteria and benefits.

For conventional mortgages, if your down payment is less than 20%, private mortgage insurance (PMI) is typically required. PMI protects the lender in case of default and adds an additional cost to your monthly payment. Once you reach 20% equity in your home, you can usually request to have PMI removed.

Government-backed loans, such as FHA loans, have their own mortgage insurance requirements regardless of down payment amount.

Minimum credit score requirements differ by loan program:

• Conventional Loans: Typically require a minimum credit score of 620.
• FHA Loans: May accept scores as low as 580 with a 3.5% down payment.
• VA and USDA Loans: Often have more flexible credit requirements, though lenders may set their own minimums.

It’s important to note that while the type of interest rate (fixed or adjustable) doesn’t directly impact credit score requirements, your credit score can influence the interest rate you’re offered.

Fixed-rate mortgages offer various term lengths to suit your financial goals:

• 15-Year Term: Higher monthly payments with less interest paid over the life of the loan.
• 20-Year Term: A middle ground between 15 and 30-year terms.
• 30-Year Term: Lower monthly payments with more interest paid over time.

Selecting the appropriate term depends on your financial situation and long-term objectives.