When it comes to mortgage loans, one size does not fit all.
Loan products vary in eligibility, requirements, and pricing.
It is best practice to ask your lender about your loan options.
Together, you can select the best one for your home financing needs.
There are a wide variety of loan types out there, which each then have their own eligibility requirements. As agents, we can give you a brief overview of what these are and otherwise defer to the lending professionals. Loan officers can discuss in depth your finances and which mortgage option is best for your situation. We have recommendations for local, trusted lenders! Give Tracey a call 919.395.7532
To give you a scoop on loan types, here is a simple breakdown at the surface-level:
Conventional; Often asks 20% of the purchase price, has the fewest restraints on types of homes to purchase
FHA; Often asks 3%-5% of the purchase price, has moderate standards in terms of types of homes and their habitability
VA; For Veterans only, 0% down, with moderate-high standards in terms of types of homes and habitability
USDA; Applies only to homes in rural areas, 0% down, with high standards in terms of home type and habitability
What do we mean when we say “habitability?” Here, we’re talking about how livable the home is. For instance, a fixer-upper lacking a stove with cracked windows is unlikely to qualify for a USDA loan and would need a Conventional instead.
Beyond loan types there are also interest rates, which can vary based on many factors such as: the applicant’s mortgage credit score, assistance programs and location of the home, and of course the government rate at the time of application.
Looking for more helpful home buying and selling tips? Keep reading our blog >>here<<