4 Popular Home Loan Types
A new report from CNBC suggests the market for new houses is on the rise.
The article credits strong job growth reported in last month’s national data, lower unemployment and lower home mortgage rates.
If you're currently in the market, here are four of the most popular home loan types available:
First-time home buyers or those wanting to buy a home, but worried about past credit issues, are eligible to apply for an FHA loan. The loan is federally insured by Fannie Mae, which means lenders can be a little more lenient to any issues with your credit history and current income. In addition to these benefits, FHA loans can have some of the most competitive interest rates on the market.
Should you find your credit makes you a well-qualified buyer, you may want to consider a conventional loan. These loans don’t require mortgage insurance once you’ve acquired 20% equity in your home, and usually have very competitive rates.
If you find yourself wanting a home loan that’s beyond the current conforming limits of other loan programs, you might need a jumbo loan. Depending on the location of your new home and the property value, your lender will work to find you the most competitive interest rate and monthly payments. The rules and qualifications for jumbo loans are more conducive to highly-qualified buyers.
If you have served in the military, you could be eligible for a VA loan. Similar to FHA loans, there are certain benefits to using your VA home benefits such as; no down payments, competitive interest rates and no lending or origination fees due at closing.
At NASB, we pride ourselves in offering a wide variety of services to a large array of customers. Give us a call at 855-465-0753 to talk about how we may be able to help your unique mortgage needs.