There are many loan programs available, so we recommend you speak with a few Lenders to find the loan that best fits your needs.  With the mortgage industry rapidly changing, it is even more important to work with a professional that has the knowledge and experience of mortgage loans and is able to find the best rates and qualify you as well as the property for different loan programs.

 

Here is a brief overview of options to familiarize you with some of the loans before you contact Lenders.  The MLS listing often lists loans that the property will qualify for under “Terms acceptable” in the Financial Details.  Homes in Rural areas, for example, will often qualify for USDA loans.  Unpermitted homes, generally, will not qualify for conventional loans and are usually marked as Cash or PMM (Seller Financing).

 

Conventional Loans cover a vast array of loan programs. They can have either fixed or variable rates or payments.

 

USDA Guaranteed Rural Housing offers an opportunity for many moderate income rural families and individuals to become homeowners.  Loans can be made with no down payment or up to 100% of market value. Income and geographic restrictions apply.

 

VA Loans are guaranteed by the Veterans Administration.  This is available to eligible military veterans. VA loans have flexible guidelines for the veteran and require no down payment.

 

Home Equity Lines of Credit/Second Mortgage Loans enable you to tap into the equity of your home without disturbing your first mortgage.  These loans offer the ability to get money for home improvement, debt consolidation or many other reasons.

 

Vacant Land Loans are available for land-only purchase and refinances.

 

Construction Loans are available for the purpose of building a home and purchasing a lot or building a home on a lot that you already own. 

 

Construction-Permanent Loans will also provide you with funds to build your home.  When the home is completed the loan will convert to a permanent loan without having to go through the process and cost of a new loan.

 

FHA Loans are insured by the Federal Housing Administration.  It is a loan that will allow down payment as little as 3.5% of the sales price.  FHA loans have more flexible guidelines with a few other benefits that the conventional mortgage does not have.

 

Fixed Rate Loan is the most popular type of loan available as it gives a homeowner the peace of mind of a stable monthly payment. 

 

Adjustable Rate Loans or Adjustable Rate Mortgages (ARM) are loans that adjust periodically depending on a specific index.  Typically the initial interest rate begins lower but will result in variable monthly payments.

 

Most Lenders are happy to provide more information and/or a free, no obligation pre-qualification.  Make sure to ask about minimum down payment, interest rates, points, pre-payment penalties, and insurance when you are discussing your options.

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Click HERE for a list of Preferred Lenders