Most people can’t afford to pay for their entire home with out of pocket cash up-front. That’s why different mortgage loan programs were created. There’s a unique loan program put together for almost every home buyers financial situation.
Since each mortgage loan program is so unique, there are different guidelines, requirements, and variables involved with each one.
Here’s a basic outline of some of the most popular loan programs. Keep reading to see which program fits your financial situation best….
If you can qualify for a Conventional Loan, there are a lot of great benefits. First-time homebuyers can now purchase a home with as little as 3% down! Conventional mortgages typically require a higher down payment, BUT with a 20% down payment there’s no more private mortgage insurance required.
Some other qualifications and benefits of a Conventional Mortgage include:
– Closing costs & fees may be included in the loan
– Quicker closings
– Repayment terms are more flexible and favorable
– Decent credit score & Debt to income ratio
If you don’t think your credit is in the best shape or you don’t have a lot of money to put down, an FHA program is probably the best choice for you. With flexible qualification guidelines, these FHA loans are particularly designed to benefit first-time homebuyers and buyers who don’t have perfect credit or a lot of money to put down.
Some other qualifications and benefits of an FHA Loan Program include:
– Gifts and Seller Contributions allowed
– Easier qualifying guidelines
– This loan is assumable, which means someone can take over the loan for you
The best part? The Federal Housing Administration just announced that in 2018 FHA loan limits will be increased from $275,665 to $294,515!
USDA Loan Program
USDA loans are insured by the U.S. Department of Agriculture and the program’s biggest feature is its option for “no money down” financing.
These loan programs are intended for moderate income families with an annual household income at or below 115%. USDA loan programs are ideal for lower income consumers- this loan can even cover closing costs!
Eligibility may be limited to certain rural areas. Click here to see the current eligible areas if you are house hunting!
Some other qualifications and benefits of this loan program include:
– NO MONEY DOWN- 100% financing
– Flexible Credit Requirements
– All property types allowed
– Seller contributions allowed
VA Loan Program
The VA home loan program is designed specifically for veterans, active military, and surviving military spouses. VA mortgages offer the unique benefit of $0 money down! VA loans are created to help making purchase a home easier for those who served our great nation.
Some other qualifications and benefits of a VA loan program include:
– No down payment required
– No mortgage insurance
– U.S Government Guarantee
– No prepayment penalty
– Flexible qualifying guidelines
Although we just covered a few of the loan program options, it’s worth doing your research to see what else is out there. We know becoming a homeowner can be a little confusing, especially if you are a first time homebuyer. Let us help you find the perfect mortgage for you and walk you through every step of the home buying process! Call or Text us at 480-415-5233