Here’s a professional and detailed breakdown of each mortgage option info sheet, along with an overview.

Provided by Property By Shaw, LLC

 

 

1. FHA Loans (Federal Housing Administration)

Purpose: Ideal for first-time buyers or those with low credit scores.
Benefits:

• Low down payment (as low as 3.5%)

• Flexible credit score requirements

• Allows gift funds for down payment

• More lenient on past bankruptcies or foreclosures
Eligibility:

• Must be primary residence

• Credit score typically 580+

• Mortgage insurance required

 

2. VA Loans (U.S. Department of Veterans Affairs)

Purpose: Exclusively for eligible veterans, service members, and surviving spouses.
Benefits:

• No down payment required

• No private mortgage insurance (PMI)

• Competitive interest rates

• Limited closing costs
Eligibility:

• Must meet VA service requirements

• Must use for primary residence

• VA funding fee applies (waved for some)

​

3. USDA Loans (U.S. Department of Agriculture)

Purpose: Designed for rural and suburban homebuyers with low-to-moderate income.
Benefits:

• 100% financing available (no down payment)

• Reduced mortgage insurance costs

• Flexible credit guidelines
Eligibility:

• Must purchase in a USDA-eligible rural area

• Household income must not exceed area limits

• Must use as primary residence

 

4. Conventional Loans

Purpose: Best for buyers with good credit and stable income. Not government-backed.
Benefits:

• Can be used for primary, secondary, or investment properties

• Down payment as low as 3% (with PMI)

• PMI can be removed at 20% equity
Eligibility:

• Credit score typically 620+

• Strong income & debt-to-income ratio

• Larger down payment helps reduce interest rates

 

5. HELOC (Home Equity Line of Credit)

Purpose: Allows homeowners to borrow against their home’s equity.
Benefits:

• Revolving line of credit—borrow as needed

• Interest-only payments during draw period

• Use for home improvements, debt, or emergencies
Eligibility:

• Must own home with sufficient equity

• Creditworthiness still evaluated

• Property serves as collateral

​

6. First-Time Homebuyer Loan Programs

Purpose: Support first-time buyers with affordable loan options.
Benefits:

• Lower down payment requirements

• Discounted interest rates or reduced fees

• May include homebuyer education programs
Eligibility:

• Must not have owned a home in past 3 years

• Must meet income and purchase price limits (varies by program)

• Often combined with down payment assistance

 

7. Down Payment Assistance (DPA) Programs

Purpose: Helps cover upfront costs for qualified buyers.
Benefits:

• Grants, forgivable loans, or deferred-payment loans

• Can cover down payment and/or closing costs

• Often doesn’t require repayment if conditions met
Eligibility:

• Income and property limits may apply

• Homebuyer education is often required

• Can be combined with FHA, USDA, or VA loans

 

8. DSCR Loan (Debt Service Coverage Ratio Loan)

Purpose: Tailored for real estate investors qualifying by rental income—not personal income.
Benefits:

• No personal income documentation required

• Property income qualifies the borrower

• Works well for short-term or long-term rentals
Key Metric:

• DSCR = Gross Monthly Rent ÷ Monthly Mortgage Expenses

• A DSCR of 1.0 or higher is typically required
Eligibility:

• Investment properties only

• 20–25% down payment usually required

• Credit score of 640+ preferred