4 Popular Home Loan Types
A new report from CNBC suggests the market for new houses is rising. The article credits strong job growth reported in last month’s national data and lower unemployment and home mortgage rates.
If you're currently in the market, here are four of the most popular home loan types available:
FHA Loans
First-time home buyers or those wanting to buy a home but worried about past credit issues can apply for an FHA loan. The loan is federally insured by Fannie Mae, which means lenders can be slightly more lenient to any problems 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.
Conventional Loans
If 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.
Jumbo Loans
If you want a home loan 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.
VA Loans
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, such as no down payments, competitive interest rates, and no lending or origination fees due at closing.
At NASB, we pride ourselves on offering many services to many customers. Call us at 888-661-1982 to discuss how we may be able to help your unique mortgage needs.
