LOAN PROGRAMS
Which Mortgage is Right for You?
Mortgage loans come in various shapes and sizes, just like the homebuyers we serve. We embrace this diversity! As mortgage loan officer, our role is to assess numerous home loan options offered by a wide array of mortgage lenders to identify the one that best suits your needs. Here's a glimpse of some of the home loan programs we can explore together.
Loan Program Options
Conventional Mortgage Loan
Often great for people with solid credit scores! This is the most common mortgage loan and can help borrowers avoid unnecessary fees.
Down payment as low as 3% (mortgage Insurance premium payments will likely be required for down payments of less than 20%)
Credit score as low as 620
Federal Housing
FHA Mortgage Loan
Can be a helpful option for people in need of more flexible credit score requirements. This mortgage loan option is insured by the Federal Housing Administration and designed to make homeownership more attainable for more people.
Down payment as low as 3.5%
Credit score as low as 580
Mortgage insurance premium payments required.
Veterans Affair
VA Mortgage Loan
Qualifying Veterans and their spouses have earned some helpful homeownership benefits.
To all of you, we thank you for your service.
No down payment required.
Credit score as low as 580
No mortgage insurance
USDA Mortgage Loan
For lovers of rural living and small suburban communities. The USDA Mortgage Loan is backed by the United States Department of Agriculture. People looking to settle down in an approved area might qualify for some home-grown benefits.
No down payment required.
No credit score requirements
No mortgage insurance
Mortgage Rate Options
There are two basic types of rate structures for home loans, and each has its own potential pros and cons:
Fixed Rate Mortgage
The interest rate you get when you close on your mortgage loan is the one you'll pay each month. With this option, you know exactly what you're in for in terms of your principal and interest payment.
Adjustable-Rate Mortgage (ARM):
Your interest rate could go up and down over the life of your loan. You'll probably pay a little lower of an interest rate at the beginning of your mortgage loan, but you could potentially end up paying more overall.
Mortgage Rate Options
There are two basic types of rate structures for home loans, and each has its own potential pros and cons:
Fixed Rate Mortgage
The interest rate you get when you close on your mortgage loan is the one you'll pay each month. With this option, you know exactly what you're in for in terms of your principal and interest payment.
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Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from Andela Financial Services and the author. Do not rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions, or mistakes.