Finding a loan can be overwhelming because there are multiple types of mortgage loans. The type of loan you choose will determine your down payment amount, what type of home you can buy and more. Here are the types of loans that you are more than likely to come across.
Conventional loans: Conventional loans are the most common type of home loans. You can purchase a home with as little as 3% down. Down payments and approval will depend on the loan product your lender recommends.
FHA loans: An FHA loan can allow you to buy a home with less strict financial and credit score requirements. You can get an FHA loan with a 3.5% down payment and a credit score as low as 580.
USDA loans: USDA loans are for people who want to buy a home in a qualified rural or suburban area. You can get a USDA loan with 0% down, subject to household income restrictions.
VA loans: VA loans are exclusively for veterans and members of the armed forces and National Guard and qualified spouses. You can buy a home with 0% down if you qualify for a VA loan.
Each type of loan has its own qualification standards that you must meet. Start the conversation with a loan officer at the financial institution you are most comfortable with or do your banking with to find out what they suggest to meet your needs and eligibility .
I am a Realtor with Five Star Real Estate
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