Most Popular Home Loan Programs

Most Popular Home Loan Programs

Whether you are purchasing your first home or looking to purchase an investment property, the many different home loan programs out there can seem overwhelming. There are different options that cater to different personal financing needs and you’ll want to make sure you select the one that works best for you. Depending on your financial goals, there may be some that are better suited for you than others. Below is a list of some of the most popular loan types and a few of the qualifications for each so you and your Loan Officer can make the best choice when going through the mortgage process:

Conventional Loan Program

Conventional home loans offer a variety of programs with long term financing options such as 30 year mortgages. You can finance up to 97% and you may be able to use gift funds for your down payment. Conventional loans do require higher credit scores than an FHA Loan and are a great option if you have little debt.

FHA Loan Program

Mortgage loans that are insured by the Federal Housing Administration. FHA-backed mortgages allow banks to issue loans without risk or capital requirements. The FHA doesn’t itself issue loans or set interest rates, it just guarantees against default. FHA loans allow individuals who may not qualify for a conventional mortgage to obtain one, especially first-time home buyers. These loans offer low minimum down payments, reasonable credit expectations, and flexible income requirements.

VA Loan Program

The VA Loan provides veterans with a federally guaranteed mortgage that requires no down payment. The Veterans Administration provides insurance to lenders in cases of default. Because the mortgage is guaranteed, lenders will offer lower interest rates and better terms than with a conventional home loan. VA home loans are available in all 50 states. A VA loan may also have reduced closing costs and no prepayment penalties.

Additionally, there are services that may be offered to veterans in danger of defaulting on their loans. VA home loans are available to military personnel that have served either 181 days during peacetime or 90 days during a war, or to the spouse of a serviceperson killed or missing in action.

USDA Loan Program

If you live in a small town or rural area, a USDA loan might just be the perfect fit. A USDA loan is one of the only 100% loan programs still available. Income limits do apply, but will vary depending on the location of the property.

Choosing the right home loan type is an important decision that is best made after you have researched your options and spoken to your Loan Officer. Should you choose a fixed rate, adjustable rate, or government loan mortgage? There are so many more details and qualifications to review with your LO so give us a call today to find out more and discuss your options. Taking the time to explore your options now can mean saving thousands of dollars in the long run. You can start your application today by applying online or downloading our mobile app here:

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