Get the Home Loan That Fits You Best
The good news is that home loans have come a long way in the past few years. Conventional home loans are no longer the only option available to home buyers. In fact, there are a wide range of home loan options that will allow you to tailor your home loan to your own personal needs.
Some of the home loan options available include:
Conventional Loans
These loans can be for a fixed or adjustable percentage rate. They usually require that you put 5% down on your home loan, and you need good credit to qualify for this type of loan. You can get this type of mortgage for a variety of terms, such as 15, 20 and 30 years. The fixed loan payment never changes, while the adjustable rate loans change with the federal interest rate.
First-Time Buyer Loans
Many lenders now have programs for first-time buyers that require less of a down payment, and allow you to qualify for them more easily than other loans.
Construction Loans
These loans allow you to finance up to 95% of your costs, including the cost of your lot. They are tailored to go from a construction loan to a permanent loan once your home is built. The main advantage of these loans is that you only have to close once, and you can usually delay making payments until your home is completed.
FHA/VA Loans
These are loans that are insured by the government. These loans generally require a low or no down payment, and closing costs can be added into the loan. However, these loans have requirements that must be met in order to qualify for them.
Investment Property Loans
If you are planning on purchasing a property that is a multi-family dwelling, this is the loan for you. Many people purchase a duplex or four-plex, live in one unit and rent out the other units for a profit.
Imperfect Credit Loans
If your credit is less than perfect, this might be the kind of loan you need. The rates tend to be a bit higher than conventional loans, but they are an excellent way to re-establish your credit.
Interest-Only Loans
This type of loan lets you choose your payment option. You can qualify for a higher loan amount, and make interest only payments for up to ten years. The drawback to this loan is that the principal loan amount does not decrease unless you choose to pay on it.
No Point, No Fee Loans
These loans are for people without a lot of cash on hand. The closing costs are paid by the lender and there are less out of pocket expenses associated with this loan. However, these loans usually have a higher rate and can have higher payments as well.
Stated Income Loans
This loan is designed for the person that cannot always provide documentation of their income. They tend to have higher rates and a higher down payment.
Balloon Mortgage Loans
These loans generally allow you to have a lower monthly payment for five or seven years. At the end of that time, you must either pay off the balance or refinance the loan.
It is important to talk with your lender to find out about which home loan is right for you. It is also a good idea to get pre-approved for a certain loan amount with your lender so that you know what your price range is before you begin looking for a property.