Mortgage Offerings | Sparrow Home Loans

Requires a minimum of 3-5% down
Stricter with their rules; they like 740+ credit however credit in the mid 600s does work as well
This program does want lower debt ratios
More lenient with documentation and questions
Higher in rate compared to government loans
Mortgage insurance is not required if putting 20% or more down
- If putting less than 20% down, your MI is based off of your credit score, DTI, LTV, and a few other factors

620 minimum credit score
You must be a first time homebuyer
They have a couple of program options
- Plus 2nd = true 100% financing by financing your down payment through a 2nd mortgage
  - Higher payment, lower out of pocket
- DPA Grant = 2% grant towards your down payment; this means, you’d still need to bring 1-1.5% of a down payment PLUS closing costs
  - Lower payment, higher out of pocket total
They are strict on their income limits and debt ratio requirements

There are a few different first time homebuyer mortgage options that each have their own set of rules
Conventional:
- 97% Conventional
VHDA: Virginia Housing
- They have a conventional option
- They have a FHA option
- They have a great option
- They also provide a grant that can be used alongside a VA loan for veterans

This program allows you to finance the build of a new home.
1 time close:
- Closes as market rate
- Interest only payments during the build
- Once build is complete you will convert to Principal and Interest payments
2 time close:
- Closes at construction rate of prime plus 2
- Interest only payments during construction
- At the completion of the build you will close again and switch to a permanent mortgage at current market rate

Requires 3.5% down
Preferably a 620+ credit score, potentially down to as low as 580
Most lenient with their debt ratio requirements; this means, you can typically qualify for more home with this program
Stricter with documentation – more documents required & more questions from underwriters
Lower in rate compared to Conventional mortgages
Mortgage insurance continues for the life of the loan

640 minimum credit score
100% financing BUT you do not have to be a first time homebuyer
This program is property specific; it must be in a USDA approved area.
- You can check a property’s eligibility through the USDA website: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do;jsessionid=3v+kwbQKZBniSjp9fM0ThYaO
This program has income limits and is the strictest 100% program in terms of their debt ratio requirements

Preferably a 600+ credit score, potentially down to as low as 580
No mortgage insurance, but they do require a funding fee
- This is an amount that is financed into your loan amount
- You can be exempt from a funding fee; right now, you are exempt from
You must be a veteran; in order to have someone else on the loan, they must be your spouse
They allow 100% financing
They are the most lenient 100% financing program in terms of credit score and their debt ratio requirements

Grants that are "in house"

VHDA: Virginia Housing
- Grant - that works with both Conventional, FHA and VA mortgages
- minimum 620 credit score
Buyer Boost Program
- The 3.5% or 5.0% DPA is based on the purchase price or the appraisal, whichever is lower.
- minimum 600 credit score
Chenoa
- The 3.5% or 5.0% DPA You do not have to be a first time homebuyer
- minimum 600 credit score

Grants that you can apply to receive:

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