Is it time to purchase your own home? Looking for the perfect loan on your new home is vital in this process, so our Rick Fuller Real Estate Team has come up with some of the different types of loans out there as well as a description of each loan, take a look!
There are advantages and disadvantages to each different loan type, but also you can choose the loan that fits your budget the best! You may hear the phrase “fixed rate mortgages,” What does this mean? Your interest rates remain constant throughout the entire life of your loan, leaving your monthly payment the same every month. Next, you may hear the phrase, “Adjustable Rate Mortgages”, normally these start with a lower rate than a 30-year fixed loan and it lasts for a predetermined period of time, after said time your rate can increase or decrease depending on the index rate of your loan. This loan can be good if you don’t see yourself owning the property for a long period of time!
An FHA Purchase is insured by the Federal Housing Administration (FHA). Designed for obtaining primary residence, and the owner must occupy this home. The benefits to an FHA is a lower minimum down payment and flexible income requirements. Next, a Conventional Purchase is provided by the government-sponsored entities, Fannie Mae and Freddie Mac. This offers competitive rates, and Lender paid private mortgage insurance. A VA Purchase provides veterans and/ or their surviving spouses with a federally guaranteed home loan. A USDA Purchase is designed for rural residents to purchase a home. Lastly, a Jumbo Purchase is a loan that you are able to finance a home that is over the loan amount established by Fannie Mae and Freddie Mac.
The Rick Fuller Real Estate Team prides itself on our dedication to our clients. Meaning down to the lenders we work with, we offer the best loan options available for you. Allow our team or Real Estate specialists to set you up with a great lender and help you with all your home buying or selling needs!