There are many types of home loans you can get when you are shopping around.
Below are the some of the most common ones along with some basic information.
Which home loan is right for your home?
This loan is the most common however, it is not insured or guaranteed by the federal government.
Minimum down payment is 3% but down payment can vary based on certain circumstances and situations.
It is typically fixed in its terms and rates.
Good For: All —— Best for: Repeat Buyers
FHA Loan. (Federal Housing Administration)
The government insures the mortgage.
Down payment minimum can be as low as 3.5%
You can have a less-than-perfect credit score to hopefully qualify.
Good for: All ——– Best For: First time home buyers
VA Loan — (Veteran’s Affairs)
This loan is ONLY available to veterans and/or surviving spouses (no remarried).
No down payment is required and lower monthly payments.
Loan is guaranteed by the federal government.
Best for: Veterans & no remarried surviving spouses
USDA Loan — (United States Department of Agriculture)
Loan was developed to promote home ownership in rural areas.
No down payment is required.
More leniency on credit scores.
Good for: All —- Best for: Investors
Happy Loan and Home Hunting!