Mortgage Products

Learn more about FAB’s most popular mortgage products.

First Advantage offers 15, 20, and 30 year fixed rate loans. A shorter term usually results in a lower interest rate.

  Conventional Loan VA Loan FHA Loan
What is it?

A mortgage that is not insured or guaranteed by a government agency. First Advantage Bank uses Fannie Mae and Freddie Mac guidelines for conforming loans.

 

A mortgage for veterans and service persons.  The loan is guaranteed by the Department of Veterans Affairs (VA) and requires low or no down payment.

 

A mortgage insured by the Federal Housing Administration (FHA). FHA loans are also known as government mortgages.

 

How does it work?

 

 Conventional loans can be conforming or nonconforming.

Conventional loans are “conforming” if they are $417,000 or less for a single-family home.

Loans above the lending limits set by Fannie Mae and Freddie Mac are called nonconforming or jumbo loans. First Advantage Bank offers solutions for both types of loans.

Qualified veterans can purchase a primary residence with no money down, as long as the purchase price doesn't exceed the appraised value of the property and the seller is willing to pay closing costs.

Veterans still needs to qualify with respect to income and credit score, and may need money for closing costs. However, the VA program permits the seller to pay closing costs.

Borrowers have traditionally been able to get FHA loans with moderate to high debt-to-income ratios. FHA loans enable borrowers to qualify for higher mortgage payments.

First Advantage Bank looks at the borrower’s overall credit picture rather than basing a loan decision on automated underwriting software alone.

What is it good for?

Conventional loans are ideal for borrowers with excellent credit who can afford a down payment of 5% percent or more.

VA loans are great for veterans that have no money or little money to put down.

Veterans don’t really need any money at all if the seller is willing to pay the closing costs.

 

The FHA loan is the go-to product for borrowers with blemished or less-than-perfect credit, borrowers with moderate debt-to-income ratios and for those who don’t have a lot of money for a down payment.

Cost

Origination fees, down payments, mortgage insurance, points and appraisal fees can mean the borrower has to show up at closing with a large sum of money out-of-pocket, or be prepared to roll over some of their costs into their mortgage amount, which may result in a higher loan amount.

Private mortgage insurance is not required, but the VA charges an upfront VA funding fee, which can be rolled into the loan or paid by the seller. The funding fee helps pay for the VA loan, reducing the cost to taxpayers.

Upfront mortgage insurance premium, and ongoing annual premiums add to overall costs of a loan. 

Pro

Conventional mortgages generally pose fewer hurdles than FHA or VA mortgages. Because conventional mortgages generally require higher down payments than the others, home equity can be built up faster.

 

With a VA loan, borrowers can qualify for 100 percent financing of the sales price. Veterans do not have to be the first-time buyers and may reuse their benefit. Private mortgage insurance is not required. Seller can pay other fees and the VA funding fee as long as these expenses don’t exceed 4% of the loan amount.

FHA mortgage requires a low 3.5% down payment as opposed to conventional loans which require a larger down payment.

Credit requirements are not as strict as those for conventional mortgages.

Con

You will need excellent credit to qualify for the best interest rates. First Advantage requires a minimum down payment of 5%. A down payment of 20% or more is necessary to waive mortgage insurance.

 

The veteran must produce a Certificate of Eligibility, or COE. Borrows must be credit worthy. Borrowers have to pay a VA funding fee, which can mean a borrower may end up with a loan on the property over 100% of the property’s value.

Upfront mortgage insurance premium, and ongoing annual premiums add up over the life of the loan.