Are you ready to purchase your first home? The homebuying process can get overwhelming, especially when considering all your financing options. While there are several mortgage options available, these are the top loan products for first-time homebuyers.
A conventional, or conforming, loan is not insured or guaranteed by the federal government. This loan option adheres to guidelines set by Fannie Mae and Freddie Mac. With this loan, you can choose between a 15 or 30-year term, with a fixed or adjustable interest rate. Conventional loans are typically used by borrowers with good/great credit and typically require a higher income.
An FHA (Federal Housing Administration) is a government-insured loan. This loan is popular among first-time homebuyers because of their low minimum down payment. This loan requires only a 3.5% minimum, which is much lower than other loan options. You might also pay fewer closing costs.
VA loans are guaranteed by the United States Department of Veterans Affairs for eligible American Veterans and active duty service members. These loans were designed to guarantee service members a federally funded home with their no down payment requirement and up to 100% financing. Information on eligibility for VA loans can be found on the VA website.
Purchasing your first home is a huge milestone. Having a qualified mortgage professional by your side to help you choose the right loan option will ensure a smooth homebuying experience. Let them help you start the homebuying process by getting pre-approved today!
If you have any questions about these loan products, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the homebuying process, click here to get started!