If you’re a first-time homebuyer, the loan process can be both exciting and daunting. With homes flying off the market in record time, it’s essential to move quickly.
Researching loans you may be eligible for and getting a layout of the guidelines can help you find a loan best suited for your financial situation as you look for your dream home.
The Conventional loan is the most common loan type and usually offers lower costs than other types.
This loan is funded by private financial lenders and is most suitable for homebuyers who have a minimum down payment of 5%. In addition, the Conventional loan offers flexibility through fixed and adjustable rates and doesn’t require an upfront mortgage insurance fee, helping you save money.
If you’re on the hunt for a primary, secondary, or investment home, consider an FHA loan, which is backed by the Federal Housing Administration, the largest insurer of single and multi-family residential mortgages in the world.
The FHA loan allows lower credit scores and a higher debt-to-income ratio, making it easier to qualify for. You can put as little as 3.5% down, but you’ll need an upfront mortgage insurance premium.
The VA loan is a government-guaranteed affordable loan empowering active service members and veterans with homeownership. This loan doesn’t require monthly mortgage insurance or a down payment and comes with 100% financing, giving veterans more opportunities.
The VA loan comes with competitive interest and a free appraisal if you sign up with USA Mortgage.
**Unless the purchase price is more than the reasonable value of the property or to meet the 25% VA guaranty
For those who envision a life in a rural area, the USDA loan is a great loan option.
It’s suitable for those with little or no money for a down payment and offers lower monthly mortgage insurance premiums. As an added benefit, if the appraisal is higher than the purchase, the USDA loan will allow the homeowner to finance closing costs.
**Homes must be located in an eligible area as defined by the USDA
If you’re looking for your dream home and need help finding a suitable loan option, get in touch with one of our mortgage lenders on our website, who are happy to help during this exciting time.
DAS Acquisition Company, LLC is not affiliated with or endorsed by any government entity or agency, including USDA, HUD, or VA. Interest rates and products are subject to change without notice and may or may not be available at the time of commitment or lock-in.