There is a loan program for everyone these days. Whether you are a first-time buyer, investment buyer, or in need of down payment assistance, there is something for you.
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There are many more options than most people think when it comes to home loans, so I wanted to give you a quick overview of all the loan options that are available right now if you’ve been thinking about buying a home. When the market crashed in 2007, a lot of loans disappeared. They are coming back now since the market has recovered and there are a lot more options available to you than there used to be.
The number one option in terms of volume is the conventional loan. Conventional loans are backed by the U.S. government through Fannie Mae and Freddie Mac and have many different options.
There are conventional loans of all different sizes and with many down payment options. There are loans with a 0% down payment, loans with 3% down, loans with 5% down, and loans that go all the way up to 20% down. Remember that if you do put 20% down on your purchase, you will not have to pay for mortgage insurance. The limit for conventional loans goes up to $417,000.
The first step is getting pre-approved.
FHA loans are the next most popular option. With an FHA loan, you only have to pay 3.5% down. These loans have a lot of flexibility for buyers, especially if you’ve had a distressed sale (short sale or foreclosure) in the past.
There are also quite a few down payment assistance programs out there. A lot of these grants can be applied to down payments and closing costs. We’ve helped many people get into homes who would not have been able to without these programs. In most cases, they have enough to make their monthly payments but fall short when it comes to closing costs and a down payment. There are specific income and credit score requirements for these programs, however.
Finally, you have the option of getting a jumbo loan. These loans are above $417,000 and are most often used in the luxury market. These programs are tailored to the people who need them, like doctors or other high-level professionals.
With so many different loan options, there is so much flexibility for home buyers. However, the first step is to get pre-approved so you’ll know what you can afford. We would love to connect you with a lender to get the process started.
If you have any questions for me about mortgage loans or anything else related to real estate, give me a call or send me an email. I would love to hear from you.
