In addition to conventional and jumbo loans, we offer three categories of government loans. Each of these loans can be utilized to purchase a home or refinance an existing mortgage.
USDA loans – These loans are available only in rural counties which include Taos and much of the rest of New Mexico. USDA loans offer 100% financing requiring no money down. It’s also possible to have all closing costs included in the loan. USDA charges a funding fee which is rolled into the loan and the borrower also pays mortgage insurance, an additional monthly payment for loans over 80% of the home’s value. USDA loans have a household income cap of $73,600 per year.
VA Loans – Available to those with veteran’s benefits, these loans offer 100% financing up to $417,000 and have no mortgage insurance requirement. Closing costs are often less than other loans and can be rolled into the loan.
FHA loans – This type of loan requires 3.5% down payment but has no income cap. The maximum FHA loan amount is $286,350 for a single family home in Taos County. FHA loans offer more lenient qualifying criteria sometimes enabling a borrower who can’t qualify for a conventional or USDA loan to qualify. FHA also offers some renovation loans enabling a buyer to both purchase a home and secure money simultaneously for renovations. FHA also charges a funding fee and requires mortgage insurance.