Navigating the home buying process can be a whirlwind, especially when it comes to loans and finances. In order to simplify things, we’ve broken down the most popular mortgage options in the United States. However, it’s always important to consult with a professional and know basic qualification information for all types of loans to know which home loan is right for you!
Conventional
Info: This is the most common mortgage option and usually has the best interest rate
Down Payment: 10% minimum, 20% standard
Best For: Repeat buyers
FHA (Federal Housing Administration)
Info: Makes ownership more affordable with less down and easier credit requirements
Down Payment: 3.5% minimum, 20% standard
Best For: First-time buyers
VA (Veterans Affairs)
Info: Takes away the need for a down payment without the risk of PMI (private mortgage insurance). Only available to veterans.
Down Payment: 0% minimum
Best For: Military veterans
USDA (United States Department of Agriculture)
Info: This mortgage options was developed to promote the purchase of rural land.
Down Payment: 0% minimum
Best For: Investors
ARM (Adjustable Rate Mortgage)
Info: These rates start out lower than any other option, but fluctuate with the market (and usually not for the better)
Down Payment: 10% minimum, 20% standard
Best For: Any interested buyer
Cesi Pagano
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