Types of Home Loans
When it comes to mortgages, getting overwhelmed with all the different options and requirements can be easy.
VA: If you or your spouse is a veteran, this can be a great option with a low down payment and competitive interest rates.
FHA: First-time buyers, check this one out! The FHA loan has lower credit requirements and a low down payment, which can make getting into a home easier than you ever imagined.
USDA: If you’re buying in a rural area, this is an excellent option with a low down payment and flexible qualifying parameters.
Conventional: This is the 30-year mortgage that your parents probably have. It’s the most popular choice, and if you don’t qualify for the other loan types, you’ll probably end up with this loan.
Bridge Loans
Ever wondered why a bridge loan could be your best friend during the home-buying process?
Here's why:
➡️You're eager to make a down payment on your dream home but need to sell your current house first.
➡️You need to secure your new abode in a jiffy!
➡️The closing dates for your new home and the sale of your current one don't quite line up.
➡️You'd rather land your new property before popping the 'For Sale' sign on your current one.
➡️The sellers in your chosen area aren't big fans of contingent purchase offers.
Bridge loans could be your ticket to making your property transition seamless.
No Down Payment?
Diving into homeownership with no down payment? It's possible, thanks to some government-backed loans. These insured loans let lenders breathe easier, knowing they're covered in case of a default, which means you get more favourable terms. Here are your options:
1️⃣ VA Loans: Courtesy of the Department of Veterans Affairs, these loans often require low or no down payments and come with lower interest rates. To be eligible, you need to be a veteran, active-duty service member, member of the National Guard, reserve or the surviving spouse of a veteran, with a Certificate of Eligibility (COE) from the VA.
2️⃣ USDA Loans: The U.S. Department of Agriculture offers these to low- and moderate-income Americans, with financing either directly or through a guarantee to lenders. With either option, there's no down payment required, but you must live or plan to live in an eligible rural area.
Remember, each loan type has specific requirements, so it's important to check if you qualify before diving in.