Types of Mortgage Loans: Understanding Home Loan Options

There’s no need to be intimidated by the process of getting a mortgage loan. Brian the Lender is here to make the loan process as easy and informative as possible. The process starts by understanding your needs and financial history. Brian offers many different types of home loans, and he’ll walk you through your options and advise you on those which best fit your needs. Whether you are a first-time home buyer, are looking for a new vacation home, or want to refinance your current mortgage loan, Brian will have the best loan option for you.

The most common loan type, conventional home loan requires as little as 5% as a down payment, or even 3% if you are a first-time home buyer. Loan terms of 15 and 30 years are the most common, and paying a down payment of 20% will get rid of mortgage insurance premiums. If you’ve got a credit score over 620 and have enough for the down payment, this might be the loan type for you.

FHA loans are backed by the Federal Housing Administration, and the goal behind them is to provide housing to those with less than perfect financial history. With FHA loans, even if you have a less-than-stellar credit score, or higher monthly debt, you might still have the opportunity to secure a mortgage loan.

USDA Rural Development Loans

The U.S. Department of Agriculture (USDA) loan provides housing to those in rural areas. The goal is for everyone to have safe and proper housing, even if they have lower income. The USDA loan rates are low, and generally have a lower mortgage insurance premium than FHA loans. Plus, there is no down payment required!

If you’re interested in purchasing a home that needs repairs, then a 203K loan might be a good fit. These loans provide the money for both the purchase of a home and the repair costs. This loan is also backed by the FHA, so it has many of the benefits that come from government-backed loans.

Jumbo Loans

Jumbo loans are for extra-large purchases with a loan amount that exceeds $548,250 in GA (as of 2021). You’ll need a superior financial history for this one, because such a large loan requires plenty of proof that you can pay it off. It might have a few more requirements than usual, but the amount of money jumbo loans can provide makes it possible to buy more expensive residential property with less cash.

VA Loans

If you’re a military serviceman or veteran who wants to buy a home, then VA loans might be your best option. Backed by the U.S. Department of Veterans Affairs, VA loans allow you to purchase a house for no money down and without mortgage insurance, while also having some of the lowest rates in the industry.

Find the Right Home Loan Option for You with Brian the Lender 

Forget about the stress and confusion of finding loans. Brian is ready to help, and he’s strong enough to carry the burden of finding the right mortgage for you.

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