What Kind of Loans Are Available in Orlando?

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We have a special guest today to help explain what kinds of loans are available to buyers in Orlando. Lynne Rohde is here today and she works with RESMAC. She has been in the industry for 25 years and we have never lost a deal due to financing when she has been working with us. She’s fantastic if you need someone to help you find financing.

So, what is the difference between VA, FHA, and conventional financing?

• VA loans are for veterans, and they don't require a down payment, although the buyer still has their closing costs in an Escrow account.
• FHA is 3.5% down, and VA and FHA are government programs so the credit score requirements are a bit lower. You only need a score of about 600 to qualify, but these are still very popular products among consumers.
• Conventional loans are for people who are putting more than 20% down in order to avoid private mortgage insurance. Most often, repeat buyers will use conventional loans because the requirements are a bit higher than FHA or VA loans.

A lot of people also want to know how long it takes to get qualified after declaring bankruptcy or going through a short sale.

• Basically, a VA loan will require a two-year recovery period.
• For FHA you will have to wait two years from a bankruptcy but three years if you have foreclosed or gone through a short sale.
• Conventional loans are more strict, and for bankruptcy and short sale it requires four years, and for a foreclosure you have to wait seven years.

There are some exceptions to these rules, but these are the main guidelines. If you have any more questions, please don’t hesitate to contact myself or Lynne!