If you’re one of the many people looking to purchase a home this year, it’s important to know your loan options and understand what’s best for your situation.
We’ve narrowed down the options to the 5 most common mortgages in the U.S.
- Conventional: This is the most common loan option and meets the needs of most people. Due to lack of government backing for these, they do require better credit to qualify, but the cost is considerably lower than most comparable government-backed loans.
- FHA: If you don’t qualify for a conventional loan, take a deeper look at this option. These loans are backed by the government and have a lower down payment requirement, credit score threshold, and income qualification. It might fit what you need!
- VA: Do you or have you served in the U.S. military? If so, you’ll want to look at this option because it’s a great loan product that’s an earned benefit offered to all active duty and retired military personnel. It has highly competitive pricing, no mortgage insurance requirement, the option to wrap the down payment into the loan principal, and further benefits extended to disabled vets.
- USDA: This loan is designed for rural borrowers, making it ideal for those who may not be able to get conventional financing. It’s managed by the Rural Housing Service and offers flexible credit criteria.
- Non-traditional: Several types of loans fit into this category, including: Jumbo, Zero Score, Interest Only, Adjustable Rate, etc. If conventional methods of homeownership are not an alternative for you, then a non-traditional loan might be an option. These loans offer versatile methods of financing for select borrowers.
Quick tip: Many states have local mortgage programs that may fit your needs as well. Talk to a Home Loan Specialist in your area to see if there are other options in your area.
If you haven’t connected with a Churchill Home Loan Specialist yet, we’re happy to connect you with someone in your area who can help answer your mortgage questions and get you on the right track for a stress-free mortgage.