Zero Down Loans
While "no money down" was a very popular option when the real estate market was appreciating rapidly in value, many of these programs have gone away as credit has tightened. While there may still be some programs available, the requirements have gotten much more stringent, so its a safe plan to save for at least a 3% down payment to make sure you have a better chance of qualifying for financing.
No Income Verification Loans
For self-employed buyers and others who have a difficult time documenting income history, this loan may be for you. These loans carry a slightly higher interest rate, strict requirements on credit score. Generally speaking, the more information you can document, the lower the interest rate. There are certain liquidity requirements typically associated with this type of program.
FHA and VA Loans
The Federal Housing Administration (FHA), offers loans for low-to-moderate-income home buyers. FHA loans have low downpayments, which typically run around 3 percent, and have relatively easy requirements. FHA mortgages have no income restrictions and even those with lower credit scores may be considered. Past bankruptcy does not necessarily disqualify borrowers from using this program!
In addition, the Department of Veterans Affairs (VA) offers a zero-down mortgage program. To take advantage of this program, borrowers need to be among those listed as veterans and service personnel in the U.S. military. One of the biggest benefits of this program is that it eliminates the need for private mortgage insurance!
Adjustable Rate Loans
With a fixed-rate mortgage, the interest rate stays the same for the life of the loan. But with an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, and is typically tied to an index, and payments go up or down accordingly. Generally speaking, lenders charge a lower initial interest rate for the ARM than for the fixed rate mortgage. If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today knowing your income will rise in the future, then this loan may be right for you. Also used when you only expect to be in the home a short time.
15, 20, 30 Year Fixed Loans
These are the most common types of conventional mortgages today. As rates are historically low, buyers can lock in a great rate for a long period of time. These loans are ideal if you know you are going to be in the house for a while. You will have the security of knowing your interest rate will not change, and you will be paying down some of the principal balance each month. The rates are higher on fixed loans than on adjustables, but the long term protection against rising rates may be worth it for you, depending upon your situation,
Find The Ideal Loan for YOU!
Let us help you find the program that's right for you.
Click here and get started today!