During the purchase of a home, there are an abundance of options to choose from when deciding on the Mortgage Loan that best fits your budget. Here is a basic breakdown of the different kinds of loans you can choose from when buying the home of your dreams!
FHA Loan (Federal Housing Administration)
– Low monthly mortgage payments
– Flexible with credit score
– Easier to qualify than other types of loans
– 15 & 30 year fixed rate
– This loan works best if you are looking to purchase, refinance, or renovate your home
- Conventional Loan (Fannie Mae & Freddie Mac)
– More financing options
– Must have good credit to qualify (typically above 700)
– 10 to 30 year fixed rates
– This loan works best if you are looking to purchase, refinance, or renovate your home
VA Loan (U.S Department of Veteran Affairs)
– Zero down payment required
– Low monthly mortgage payments
– Mortgage insurance not required
– Limited to eligible veterans
– 15 & 30 year fixed rate
– This loan works best if you are looking to purchase, refinance or have an assumable mortgage on your home
USDA Rural Housing Loan (U.S Department of Agriculture)
– Zero down payment required
– Low monthly mortgage payments
– Must have good credit to qualify (typically above 700)
– Limited to properties in rural areas
– 30 year fixed rate
– This loan works best if you are looking to purchase or refinance
This is just a scratch on the surface of the four main types of loans and their assets. Our Real Estate Professionals are overwhelmingly knowledgeable on all of these different types of loans and will provide you with any information you may need. They will also be able to give you advice on which loan would work best for you based on your financial situation. Click here to get in touch with one of our agents today, they are standing by ready and willing to help you!