Which Loan Is Best For You

Talking to a Licensed Mortgage Specialist is your best resource to see which loan product is best for you, but the following is an overview of the most common loans available.  

A conventional fixed-rate home loan is a type of “fixed-rate” loan that won’t fluctuate for the life of the loan. They are considered a safe bet type of loans because of their consistency. Your monthly loan payments won’t go up or down. They’ll simply stay the same as they are fixed.

A conventional fixed-rate mortgage is generally your standard mortgage. They are typically available in 10, 15, 20 and 30-year terms.

But 15 and 30 years are the most popular and common conventional fixed mortgage loans.

Is a zero down loan program that is designed to help families in rural areas.  It’s a 90% government-backed home loan that lends 100% of the home price to borrowers. It’s available through approved lenders with no down payment. USDA home loan It’s one of the least known government mortgage assistance programs. But it’s one many homebuyer can take advantage of as long as they meet the USDA criteria.

To qualify, you must be purchasing a home in a USDA defined rural area. If you have a home you are interested in, you can check the address here to see if it’s eligible.

Also just as the FHA loan, you will be required to purchase mortgage insurance.

To qualify, review the USDA loan requirements here and check to see if any of your local lenders can assist you.

FHA Loans are loans guaranteed by the Federal Housing Administration. And they are managed by the Department of Housing and Urban Development (HUD).

These types of loans are often marketed to first-time home buyers. Yet, they’re actually available to a variety of home borrowers.

These are mortgages guaranteed by the Federal Housing Administration. What it means is that they come with built-in mortgage insurance. It’s protected against the possibility of not being able to repay the loan.

But that’s not the only draw.

The main advantage of an FHA Loan is its low down payment requirement. And it allows low-credit borrowers to access a mortgage.

You can put as little as 3.5% down on the purchase price of your home with an FHA mortgage. However, in exchange for this privilege, you’ll need to get mortgage insurance for the life of your loan.

Do you want to buy a home but don’t have an excellent credit score or a huge amount of money for a down payment? An FHA home loan mortgage might be a good way to get into homeownership.  There is currently down payment assistance available programs to those individuals that meet the qualifications.  
 

VA loans are a no money down mortgage option mostly available to Veterans. But if you are a service member or select military spouse, you may qualify for one too.

This loan is designed to make easier for veterans of the U.S. armed forces, and sometimes their spouses, to buy homes.

Unlike other conventional loans, they don’t require a down payment. They are also guaranteed by the Department of Veteran Affairs.

They’re issued by private lenders, such as mortgage company or bank.

There are many different types of adjustable-rate mortgages or ARMs.

The basic and common idea is that their interest rate changes over time throughout the life of the loan. With this type of loans, you need to expect fluctuations in your interest rate as the market changes.

One of the most common ARMs is called the 5/1 loan. With this loan type, your interest rate stays the same for the first five years. The remainder of your loan, the rate is free to change and fluctuate.

Again, this loan can be an option if you plan to sell your house within 5 years or so.USDA Home Loan

A jumbo loan is a type of large home loan that exceeds the limits of the Federal Housing Finance Agency.

A loan offered for luxury property transactions is often classified as jumbo.

Unlike conventional mortgages, jumbo mortgages are too large for the government to guarantee. For their large size, they are not eligible to be purchased or securitized by Freddie Mac or Fannie Mae.

Since this shifts more risks to lenders, an interest rate for jumbo tends to be higher.

Getting a jumbo loan may also mean you have to provide more to qualify. You lender may require more cash reserves, a higher down payment, and better credit.

The exact loan amount that defines jumbo changes with time and differs by cities. But for most places, a loan over $484,350 is considered jumbo as of 2019. This is more than $30,000 higher than the 2018 limit of $453,100.

Speak with your local lender or one of our preferred lenders to learn  more bout any of the above loans and let them see what they can do to get you Pre-Qualified.