If you are considering purchasing a home, you may be wondering about the different types of home loans available to you. Let’s talk home loans! There are many types of home loans to choose from and each have their own advantages and disadvantages. In this blog, we will explore the different types of home loans and help you determine which one is right for you.
The most common type of home loan is a conventional loan. This type of loan is provided by a bank or other financial institution. These loans are typically fixed-rate and offer competitive interest rates. Keep in mind, they typically require a down payment and may require private mortgage insurance (PMI) if you make a down payment that is less than 20% of the total.
Adjustable-rate mortgages (ARMs) are another popular type of home loan. These loans offer a lower initial interest rate, but the rate can change over time. ARMs are a great option for people who plan to stay in their home for a short period of time.
Government-backed loans are another option for those looking to purchase a home. These loans are offered by the Federal Housing Administration (FHA), Department of Veterans Affairs (VA), and the United States Department of Agriculture (USDA). These loans typically require lower down payments (some as low as 0 down) and offer more flexible terms. Connect with a lender to see if you qualify. Need a lender? Contact me and I can connect you with a few.
Finally, there are jumbo loans, which are loans that exceed the conforming loan limit set by the Federal Housing Finance Agency. These loans typically require higher credit scores, higher down payments, and higher interest rates.
Now that you know about the different types of home loans available, you can make an informed decision about which one is right for you. Be sure to speak with a qualified mortgage lender to learn more about your options and to get the best loan for your needs.
Need help connecting with a trusted lender? Connect with me so I can help connect you with a couple local lenders so that you can decide which is the best fit for you.