Choosing a mortgage can be a little intimidating for first time homebuyers. One thing to remember is mortgages are not created equal. There is no one mortgage to fit everyone. You have to consider all of your personal and financial needs when choosing to make sure you pick the best option you see fit for your lifestyle. Here is a brief description to give you an introduction to the most common type of loan options:
FHA LoanAn FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). Designed for moderate income borrowers, FHA loans allow for lower credit scores than conventional loans.
- Down payments as low as 3.5% of the sales price
- Great for renovating a current home
- You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage
- financing for mobile homes and factory-built housing
- Available on 1-4 unit owner occupied properties.
FHA 30 yr fixed 4.25% (APR 5.365%) — $250,000 Purchase price — 3.5% downpayment — P&I & MI $1377.14 — T&I $ 255.00 *borrower to confirm the taxes and insurances rate.
The main difference between a conventional loan and other types of mortgages is that a conventional loan isn’t made by or insured by a government entity. They’re also sometimes referred to as non-GSE loans—not a non-government sponsored entity.
- More flexible than government-backed loans
- The loan application process moves faster
- With a 20% down payment, you can avoid paying monthly mortgage insurance
- Down payments as low as 3%
- Opportunities for reduced Mortgage Insurance
USDA loans are mortgages backed the U.S. Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan program. USDA loans are available to home buyers with low-to-average income for their area, offer 100% financing with reduced mortgage insurance premiums, and feature below-market mortgage rates.
- $0 down payment
- Competitive interest rates
- Low monthly mortgage insurance
- Flexible credit requirements
USDA 30 yr fixed — $250,000 purchase price. 0% down — 4.125% (APR 4.676%) — P&I + MI $ 1296.94 — T&I $ 255.00 *borrower to confirm the taxes and insurances rate.
VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.
- 0% Down
- No PMI
- Competitive Interest Rates
- Easier to Qualify
VA 30 Yr fixed — $250,000 purchase price. 0% down — 4.250% (APR 4.540%) — P&I $ 1256.29 — T&I $ 255.00 *borrower to confirm the taxes and insurances rate.
To learn more information about which loan could be the right loan for you, call one of our experts now!