What is a conventional mortgage?
Conventional mortgages are the most common type of home loan, and are not insured or guaranteed by any government entity. Down payments typically range from 3% to as much as the home buyer would like to pay, although there are some 0% down payment programs available as well.
What are VA loans?
VA loans are guaranteed by the Veterans Administration and are available only to qualified veterans. The primary benefit of a VA loan is the ability to obtain 100% financing. The veteran pays a funding fee to the VA at closing, and the fee may be included in the loan. The funding fee varies from 0% to 3% of the loan amount, depending on a variety of factors.
What is an FHA loan?
FHA loans require very low down payments and are insured by the Federal Housing Administration. A one-time mortgage insurance premium is paid at closing and a small monthly MI premium is included in the loan payment. The amount of the up-front and monthly MI premium varies with the term of the loan and the loan-to-value ratio.
What is an RD loan?
This is a loan out there for those looking for a low down payment loan. The down payment for this loan is actually $0 (zero). In addition, the borrower does NOT have to pay mortgage insurance on this loan. This is a type of loan specifically tailored for rural areas.
What is an FHA 203k loan?
The FHA 203k mortgage is a 30 year fixed rate loan which allows needed repairs, updates and improvements to be financed in the new mortgage . With low down payments and competitive interest rates, this is a great program for that house which is being sold “as is” but needs work. Some examples of work that can be included in the mortgage are: remodeling Kitchens/baths, purchase and install appliances, painting, repair/replace/upgrade existing HVAC systems, plumbing, and electrical, repair/replace roofs, gutters and downspouts, basement finish and remodeling, basement waterproofing, weatherization, including storm windows and doors, insulation, weather stripping. Etc. repair/replacement/addition of exterior decks, patios, porches. The work is started after the loan is closed and needs to be completed in 3 – 6 months.
Of course, for more details regarding which of these mortgage options is the best for you, we have a choice of lenders for you !
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