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FHA and VA Loans

There are some really great advantages when you use an FHA or VA Mortgage to purchase a home, or when you refinance an existing loan. But there are Pros and Cons you want to consider before making a decision.

Please use the quick summary chart below that shows some of the differences between the loan types.

As of June 3rd, 2013: Conventional FHA VA USDA*
Down Payment 5% 3.50% 0% 0%
Annual Mortgage Insurance anywhere from .12% to 1.2% per year, based on down payment. 1.30% - 1.55% for loan terms over 15 years / .45% - .95% for loan terms of 15years or less. NONE .40%
Additional Costs Increase to rate or penalty based on credit score 1.75% Upfront Mortgage Insurance premium added to your loan balance, OR can be paid in full in cash at closing 0% - 2% - 3.3% Funding Fee added to your loan balance. 2% Funding Fee added to your loan balance.
Credit Guidelines toughest more lenient more lenient more lenient

As you can see, FHA, VA, and USDA may be more appropriate for you if:

  • You have little down payment
  • You have had some credit issues in the past

*USDA loans are limited to certain areas deemed rural by the USDA.

Sample Scenario:

For a 30 year loan, a $200,000 mortgage loan with a range of 4.50% (APR 5.579%) and a 3.5% down payment ($7,255) on purchase price of $207,255, would have a monthly payment of $1237.91. *

* Important Notices

The interest rates, annual percentage rates (APRs), discount points and rebates shown are subject to change without notice. The monthly payment amount shown includes principal, interest and mortgage insurance only. Your actual monthly payment will be higher if an escrow/impound account is established or required. Your APR will vary based on your final loan amount and finance charges. Stated rates and terms intended as examples only. Call (615) 370-8888 for current rates and terms.

No Cost Refinance:

For many FHA and VA Mortgage Holders, it is possible for you to refinance for little or No Cost! We often are able to do this with special pricing that allows us to pay some if not all of the Settlement Costs for you.

-- This means that you may not have to bring money to closing, and you may not have any money added to your current principal loan amount. This way, even a small monthly savings is worthwhile because there may be no closing costs or fees to recoup.

Why? Because nothing has been charged to you or added to your loan.

Credit Issues:

For borrowers that may have some problems on their credit report, but have paid their FHA or VA Mortgage on time for at least the last 12 months, you may be eligible for our Streamline Refinance that allows us to refinance your loan back with FHA or VA, even though you have some credit problems on debts other than your mortgage. This allows us to refinance many borrowers with questionable credit and give them the ability to enjoy lower rates without big origination fees or points.

Get Started with Churchill Mortgage

Or Call us at 1-888-562-6200 and speak with a representative today!

Sample Scenario:

For a Conventional 30 year loan, a $200,000 mortgage loan with a rate of 4.50% (APR 5.361%) and a 5% down payment ($10,526) on purchase price of $210,526, would have a monthly payment of $1,213.37. *

For a FHA 30 year loan, a $203,500 mortgage loan with a rate of 4.50% (APR 5.565%) and a 3.5% down payment ($7,255) on purchase price of $207,255, would have a monthly payment of $1,237.91. *

For a VA 30 year loan, a $206,600 mortgage loan with a rate of 4.50% (APR 4.840%) and a 3.3% down payment ($6,825) on purchase price of $206,825, would have a monthly payment of $1,046.81. *

For a USDA 30 year loan, a $204,816 mortgage loan with a rate of 4.50% (APR 4.980%) and a .3% down payment ($602) on purchase price of $200,602, would have a monthly payment of $1,048.86. *

* Important Notices

The interest rates, annual percentage rates (APRs), discount points and rebates shown are subject to change without notice. The monthly payment amount shown includes principal, interest and mortgage insurance only. Your actual monthly payment will be higher if an escrow/impound account is established or required. Your APR will vary based on your final loan amount and finance charges. Stated rates and terms intended as examples only. Call (615) 370-8888 for current rates and terms.