Mortgage Loan Pre-Approval is the first step in the homeownership process!
Choosing the best loan for you, your family, and your budget can feel overwhelming—but you don’t have to do it alone. Whether you're buying a new home or considering refinancing your current one to secure a better rate or lower your monthly payments, my team and I are here to guide you through the process. We’ll help you explore your options and select the mortgage that fits your unique needs. Let’s make your financial goals a reality—contact us today to get started!
UNDERSTANDING MORTGAGE LOANS
And which one is best for you
It is important to note that all types of mortgages come with their own advantages and disadvantages. Working with a knowledgeable loan officer can help you figure out what mortgage option is the best fit for your needs, wants and your budget. There are a few popular types of home loans to choose from:
Conventional Loans
Conventional loans are mortgages that are guaranteed by the Federal Home Loan Mortgage Corporation (Freddie Mac) and/or the Federal National Mortgage Association (Fannie Mae). Here are some essential features of conventional loans:
Fixed or Adjustable Rate options
Primary residence, second home and investment properties are eligible
30-year terms are available
Allow for the purchase homes priced higher than FHA or USDA
Payment of mortgage insurance can be avoided (and if it is paid initially, it may eventually drops off)
Credit standards are more restrictive
VA Loans
VA Loans are funded by private lenders and are guaranteed by the Department of Veterans Affairs. In 1944, the VA Home Loan was created to help returning service members purchase homes. More than 22 million home loans have been guaranteed by the VA program to help veterans, active duty service members and their families purchase or refinance their homes.
Fixed or Adjustable Rate options
No down payment required
Primary residences only
Mortgage insurance not required. Financeable Funding fee required for most (Disabled Veterans may be exempt).
Competitive Interest Rates
Lower credit scores can also qualify
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FHA Loans
FHA Loans are insured by the Federal Housing Administration. They allow for affordable down payments and require that the borrower pay monthly mortgage insurance.
Fixed or Adjustable Rate options
Primary residences only. Non-occupant co-borrowers are allowed
15- and 30-year terms
Down payment can be as little as 3.5% of the purchase price
Seller contributions allowed up to 6%
No prepayment penalties
Mortgage insurance is required for the duration of the loan
Lower credit scores can also qualify
FHA 203K-Renovation loan
This loan program is supported by the Federal Housing Administration. 203K is a government-backed loan that allows borrowers to finance a home purchase and provide funds for rehabilitation. The program lets the lender consider the value as if the repairs have already been made. There are two type of 203k loans: Limited and Standard. Limited is for non-structural repairs up to $35,000, while Standard is for repairs that are structural in nature or exceed $35,000.
Fixed or Adjustable Rates options
3.5% minimum down payment
If the house cannot be occupied during constructions, payments can be financed
On Limited 203k up to 50% of the funds can be advanced at closing.
Competitive interest rates
Mortgage insurance required for the duration of the loan
Restrictions on improvement types
On Standard 203k, an HUD approved consultant is required.
Repairs must be completed in 6 months.
Lower credit score requirements
USDA Loans
USDA Loans are mortgage loans offered through the USDA Rural Development Guaranteed Housing Loan Program. This type of loan is for home buyers interested in purchasing a home that is in an eligible rural or suburban area.
Fixed Rate options
Primary residences only. Borrower cannot own other property
No down payment required
30-year term available
Borrower must meet income requirements
Mortgage insurance is required but is lower than FHA and conventional loans
Some home repairs and upgrades can be financed
Lower credit scores can also qualify
HomeStyle
Renovation loan by the Federal National Mortgage Association (Fannie Mae) that allows home buyers to take a single mortgage loan out for a home purchase and home renovations.
Fixed or Adjustable Rates options
5% minimum down payment
15- and 30-year terms available
Higher credit score requirement
Single family second home, Investment Properties allowed
No restrictions on the types of improvements, MI can be canceled
As you can see, there are lots of different types of mortgages and a number of different options available to you. Choosing the right loan product for you, your family and your budget can be tricky. The good news is that you don’t have to do it alone. My team and I can help you choose the right mortgage for you and your needs.
Our experienced team will take the time to get to understand your budget, your desires and your constraints. From there, we will walk you through your options and which loans may be the best fit for you. We don’t stop there. Our consultants will be with you every step of the way, from our first conversation to closing day.
When you choose our team and our lender, you can rest assured that we will guide you through the mortgage process, keeping you informed throughout so that you can be confident that your home loan is the right home loan for you.
