WHAT IS THE BEST MORTGAGE TYPE FOR YOU?
Home loans and mortgages are financial products that allow individuals to purchase or refinance a home. We have a wide range of different mortgage types, each with its own unique features, interest rates, and repayment terms. Below are some of the most popular options.
A conventional loan offers lower interest rates and typically requires a strong credit score, and may allow down payments as low as 3% for First Time Home Buyers. These loans may also require Private Mortgage Insurance (PMI) without a minimum down payment. Conventional loans often have higher loan limits than other loan types.
An FHA loan is a type of mortgage that is insured by the Federal Housing Administration (FHA). This type of loan is popular among first-time homebuyers who may not have a large down payment. This loan is generally more flexible with minor credit issues and is often a great choice for buyers looking for their first home.
A VA loan is a mortgage exclusive to our nation’s veterans and active military that is guaranteed by the Department of Veterans Affairs (VA). VA loans have lower interest rates and no monthly mortgage insurance, even with no down payment.
A USDA loan is a mortgage for borrowers who are looking to purchase a home in rural or suburban areas that is guaranteed by the United States Department of Agriculture (USDA). USDA loans typically have lower interest rates and no down payment requirements.
A Hobby Farm loan is specifically designed for borrowers looking to purchase property that combines residential living with agriculture as a hobby or small-scale venture. This loan can allow buyers to own property with as much as 165 acres.
First Time Home Buyer
There are many programs available to assist with down payment and qualifications for people who have either never owned a home before or have not owned a home in the last three years. These programs may include grants or loans to assist with down payment and closing costs.
A construction loan is a short-term loan that provides borrowers with the funding necessary to build a home. These can be converted into a standard mortgage once construction is complete.
A jumbo loan is a type of mortgage that exceeds the maximum loan limit set by Federal Housing Finance Agency (FHFA). Jumbo loans help borrowers who need to finance high-value properties but may require higher credit scores and larger down payments.
There are many different mortgage types available to borrowers and it is important to understand their differences and requirements before choosing the one that is right for you. A qualified mortgage lender can help borrowers find the best loan product for your needs and financial situation. Discuss your options today.