Which Mortgage is Right for You?
There are a variety of different home loan types out there. Understanding the one that works best for your situation can really pay off. The good news is we are here to help walk you through. identifying the best fit for your needs.
Loan Program Options
FHA Home Loan
Insured by the Federal Housing Administration, FHA loans are designed for low-to-moderate-income borrowers. They allow lower minimum down payments and credit scores than many conventional loans.
Conventional Loan
Conventional Loans are mortgage loans not insured or guaranteed by the federal government. They are typically offered by private lenders and may adhere to the guidelines set by Fannie Mae and Freddie Mac.
VA Loans
Guaranteed by the U.S. Department of Veterans Affairs, VA loans are available to active-duty military members, veterans, and certain military spouses. They offer benefits like no down payment and no private mortgage insurance.
USDA Loans
These loans are backed by the United States Department of Agriculture and are aimed at aiding rural homebuyers who meet certain income requirements.
Jumbo Loans
Jumbo loans are for amounts that exceed the conforming loan limits set by the Federal Housing Finance Agency. They are typically used to buy high-priced or luxury homes.
Reverse Mortgage
A reverse mortgage is a type of loan designed for homeowners aged 62 and older, allowing them to convert part of the equity in their home into cash without having to sell the home, give up title, or take on a new monthly mortgage payment.
Down Payment Assistance
Down Payment Assistance (DPA) loan programs are designed to help homebuyers, especially first-time buyers, with the upfront costs associated with purchasing a home, primarily the down payment and sometimes closing costs.
Mortgage Rate Options
Fixed Rate
The traditional fixed-rate mortgage, a popular choice among loan options, features consistent monthly payments for both principal and interest that remain unchanged throughout the duration of the loan.
Adjustable ARM
The Adjustable Rate Mortgage (ARM) offers an initial interest rate that is typically lower than that of fixed-rate mortgages for a set period. After this initial term, the interest rate can fluctuate based on market trends.
Interest Only
An Interest Only mortgage allows borrowers to pay only the interest on the loan for a specified initial period, resulting in lower monthly payments. After this period ends, payments increase to include both principal and interest.
Graduated Payments
Graduated payments refer to a repayment plan where the payment amounts start lower and gradually increase over time, regardless of the interest rate changes. This structure is designed to match the borrower's expected income growth.
For information purposes only. This is not a commitment to lend or extend credit.
Information and/or dates are subject to change without notice. All loans subject to credit approval.
CA Department of Real Estate #01505999
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