Loan Programs

Fannie Mae conforming loan basics

General purchase guidelines, reviewed October 29, 2026. Requirements vary by property, occupancy, loan type and underwriting results.

• Down payment: As low as 3% for eligible one-unit primary-home purchases. Standard 97% financing requires at least one first-time homebuyer; HomeReady has income limits and separate eligibility rules. Other transactions may require more down.
• Credit / FICO score: Desktop Underwriter (DU), Fannie Mae’s automated underwriting system, has no fixed minimum credit score and evaluates the overall application. Manual underwriting generally requires at least 620 for fixed-rate loans or 640 for adjustable-rate loans. Lenders and mortgage insurers may set higher requirements.
• Debt-to-income ratio: Monthly debt payments compared with gross qualifying income. DU permits up to 50%, subject to approval. Manual underwriting generally allows 36%, or up to 45% when credit and reserve requirements are met.
• Mortgage insurance: Generally required when the loan exceeds 80% of the home’s value—typically with less than 20% down.
• 2026 loan limits: $832,750 for a one-unit property in most areas; up to $1,249,125 in designated high-cost areas in the contiguous U.S. Limits vary by county and number of units; special statutory areas have different limits.

These are general Fannie Mae guidelines, not a commitment to lend or confirmation of Loan Direct’s program availability. Final eligibility depends on the full application, applicable lender requirements and current guidelines.

Official sources: Down payment · Credit scores · Debt ratios · Mortgage insurance · Loan limits

FHA loan basics

Reviewed October 29, 2026.

• Down payment / credit score: Generally 3.5% down with a minimum decision credit score of 580 or higher; 500–579 requires at least 10% down. Lenders may require higher scores. FHA also has separate rules for borrowers without a credit score.
• Debt-to-income ratio: Manual underwriting generally starts with 31% for housing costs and 43% for total monthly debts relative to gross qualifying income. Higher ratios may be allowed with qualifying compensating factors or automated underwriting approval.
• Mortgage insurance: Most purchase loans require a 1.75% upfront premium plus annual mortgage insurance paid monthly. Annual cost and duration depend on the loan’s term, amount and loan-to-value ratio.
• Home / borrower eligibility: Generally for a primary residence meeting FHA appraisal and property standards. Not limited to first-time homebuyers. Income, assets and credit history are reviewed.
• 2026 loan limits: One-unit limits range from $541,287 in lower-cost areas to $1,249,125 in high-cost areas in the contiguous U.S. County, unit count and special statutory areas affect the limit.

General agency guidelines; lender requirements may be stricter. Final approval and Loan Direct program availability require review of the complete application.

Official sources: HUD policy handbook · Mortgage insurance · 2026 limits

VA loan basics

Reviewed October 29, 2026.

• Eligibility: Available to eligible Veterans, service members and certain surviving spouses. A Certificate of Eligibility (COE) confirms entitlement; lender approval is also required.
• Down payment: Often no down payment with sufficient entitlement and a purchase price within the appraised value. An appraisal shortfall, limited entitlement or lender requirements may require cash down.
• Credit / FICO score: VA sets no minimum credit score. Lenders may set their own minimum and review credit history and repayment ability.
• Debt-to-income / residual income: 41% is a benchmark, rather than an absolute cap. Higher ratios receive additional review. Residual income—the money left after specified obligations—is a key requirement.
• Fees / insurance: No monthly mortgage insurance. A one-time VA funding fee generally applies unless exempt; the rate depends on loan type, prior use and down payment. Closing costs may still apply.
• Loan size / property: With full entitlement, VA imposes no county loan limit; lender qualification and appraisal still govern. Remaining entitlement can affect down payment requirements. Generally for an eligible primary residence meeting VA property standards.

General agency guidelines; lender requirements may be stricter. Final approval and Loan Direct program availability require review of the complete application.

Official sources: VA eligibility and credit · Underwriting · Funding fee · Entitlement

Reverse mortgage basics — FHA-insured HECM

Reviewed October 29, 2026.

• Age / home: HECM borrowers must be 62 or older and occupy an eligible primary residence. Younger non-borrowing spouses have separate rules and protections.
• Equity / cash needed: Substantial equity is required. Existing mortgage debt must be paid off at closing using proceeds and/or other funds. A HECM purchase requires enough cash to cover the gap between proceeds and purchase costs; there is no universal down payment percentage.
• Credit / income: A financial assessment reviews credit history, income and ability to pay ongoing property charges. This differs from a conventional FICO-score and debt-ratio test; a property-charge set-aside may be required.
• Counseling / proceeds: HUD-approved HECM counseling is required. Available proceeds depend on age, interest rates, property value and the applicable FHA limit.
• Payments / costs: No required monthly principal-and-interest payments while loan conditions are met. Interest, mortgage insurance and financed fees add to the balance and reduce equity.
• Ongoing responsibilities / repayment: Keep paying property taxes, insurance and required charges, maintain the home and meet occupancy rules. The loan generally becomes due after sale, permanent move-out or the last borrower’s death, subject to spouse protections. Failure to meet obligations can lead to foreclosure.

This summary covers FHA-insured HECMs. Proprietary reverse mortgages have different requirements. Eligibility and Loan Direct program availability require individual review.

Official sources: HUD HECM overview · Borrower responsibilities · Repayment

Your business is complex. Your mortgage process can be simpler.

Designed for business owners with complex tax structures, our Self-Employed loan program offers an alternative way to document income—without tax returns.

• Income documentation: No tax returns required as proof of income. Alternative income documentation is required.
• Business history: At least 2 years in business.
• Credit score: Minimum FICO score of 640.
• Loan amounts: Up to $3 million.
• Down payment: As low as 10%.

Program eligibility, loan amount and down payment depend on credit, property and underwriting requirements. The lowest down payment may not be available at every credit score or loan amount. Contact our team for details.

Build your portfolio. Simplify your financing.

Designed for real estate investors, our No Income Verifier program streamlines financing for your investment portfolio with fewer documentation requirements.

• No proof of income required.
• No proof of employment required.
• No seasoning required for cash to close: Funds do not need to be held in your account for a minimum period before closing.
• Credit score: Minimum FICO score of 620.
• Loan amounts: Up to $3 million.

For eligible investment properties. Approval and loan amount are subject to credit, property and underwriting requirements. Other documentation may be required. Contact our team for full program details.

Exceptional homes. A thoughtfully guided mortgage experience.

Designed for luxury homebuyers who value a smooth process, our Super Jumbo program pairs larger loan amounts with attentive guidance at every step.

• Loan amounts: From $3 million to $10 million.
• Down payment: Starting at 30%.
• Credit score: Minimum FICO score of 700.

Approval, loan amount and down payment are subject to credit, property and underwriting requirements. Contact our team for full program details.

Special situations. More possibilities.

Our Hard Money Loan program is designed for situations that may fall outside traditional lending guidelines, with a focus on the property’s value.

• Less-than-perfect credit: Options for borrowers with credit challenges.
• Property condition: Properties that may not meet building codes can be considered, subject to review.
• Unique properties: Financing options for properties that do not fit conventional lending criteria.
• Loan-to-value: Borrow up to 75% of the property’s value.
• Credit score: No minimum credit score required.
• Income documentation: No proof of income required.

Approval and loan-to-value depend on the property, valuation and underwriting review. Credit history may still be reviewed, and other documentation may be required. Contact our team for full program details.

Bring your next project to life.

Designed for builders and real estate investors, our Construction Loan program helps finance single-family homes and subdivision projects.

• Loan amounts: From $250,000 to $10 million.
• Project financing: Up to 85% of total project costs.
• Eligible projects: Single-family homes and subdivisions.
• Credit score: Minimum credit score of 680.
• Experience: At least 1 prior project. Your contractor’s experience may be used to meet this requirement.

Approval and financing amounts are subject to project, credit and underwriting review. Contractor experience is subject to acceptance. Contact our team for full program details.

A temporary stay. A new property opportunity.

Designed for foreign nationals who may be in the United States temporarily, our Foreign National Loans program offers a simpler path to property financing.

• Temporary visitor categories: Examples include B-1 business visitors, B-2 tourists, F-1 academic students and M-1 vocational students. Individual status and loan eligibility are subject to review.
• Loan amounts: From $250,000 to $3 million.
• Down payment: 25% minimum.
• Credit: No credit history required.
• Income documentation: No proof of income required.
• Required documents: A copy of your passport, a valid visa and Form I-94 are generally required, subject to the exceptions below.
• Visa-exempt borrowers: Foreign nationals legally permitted to travel to and from the United States without a visa are eligible, subject to underwriting review. Examples include qualifying Visa Waiver Program travelers and Canadian citizens traveling for visa-exempt purposes. VWP travelers must meet applicable ESTA and entry requirements. See the State Department’s Visa Waiver Program page and participating countries.
• Purchasing from abroad: A valid visa or I-94 may not be required when the borrower is outside the United States and purchasing an investment property, such as through a remote closing or an approved power of attorney (POA). Documentation exceptions and closing arrangements are subject to lender review.

Approval depends on immigration documentation, property and underwriting requirements. A visa category alone does not establish loan eligibility. Other documentation may be required.

Visa category references: USCIS business visitors · USCIS students · Visitor visas · Student visas