Conventional: First time homebuyers can qualify with as little as 3% down payment on primary homes. For alternative occupancy, the minimum down payment is 10% on second homes, and 15% on investment properties. The best terms provided are at 20% down payment for primary homes. Refinances can be done to obtain a lower interest rate or to take cash out of a property that has considerable amount of equity. Taking cash out of a property is helpful for home improvements, debt consolidation, college tuition, etc. The current conventional loan limit is $715,000.
FHA: A popular choice for new homebuyers, this program allows for as little as 3.5% down payment and lower than market interest rates. Mortgage insurance is required. This program allows for lower credit scores and higher debt to income ratios.
USDA: For rural areas in New Mexico, buyers can take advantage of 100% financing (no down payment) as long as income parameters are met. Mortgage insurance and interest rates are slightly lower for this program than conventional financing.
VA: In appreciation for our veterans, VA financing offers up to 100% financing and lower than market interest rates. This is a great option for veterans and their spouses.
Jumbo: Categorized as loans greater than $715,000. Rates can be slightly higher but allows for financing for higher priced homes.
One-time close construction: A 15 or 30 year mortgage, interest only payments are made during the construction period and then the loan is fully amortized to pay down principal. Construction must be complete within 11 months. The loan allows for up to 95% financing.
Home Equity Line of Credit: If you have additional equity in your property, a home equity line of credit could be useful for home improvement projects or whatever your needs may be. This allows you to take out a smaller loan without affecting your current mortgage (if applicable; which may be locked into a lower interest rate).