In today’s lending world, there are multiple options for available types of loans to purchase or refinance a home. Loan options range from your standard conventional loan, to your government loans like VA, FHA and USDA. Most of the time, with a quick Google search you can get the outlining parameters for each loan, but in order to get the best advice for your area, talking with a REALTOR® is your best option.
Often we hear that a borrower must come in with a down payment of 20% or more in order to qualify for a home loan. This statement is far from the truth. Depending on your area, there are loan options from 0% down to 20% down and everything in-between.
Each loan will have their own set of guidelines and requirements. A lender will need to determine your intent of the property; primary, secondary or investment. From there, the lender will determine your income, debt, credit, down payment, sales price, type of property and even the location of the home to determine which loan(s) works best for you.
At times, a borrower may only qualify for one type of loan. Other times that borrower may qualify for multiple types of loans. At that point, it is up to your lender and you to make the choice as to which loan best fits your situation and your needs. If you are interested in a purchase or refinance, consult us or your Mortgage Lender for their advice and knowledge. You may be closer to homeownership than you think!