3 Financing Options When Buying a Home
Filed under: Mortgage Rates
Buyers often ask me: what are the different types of financing available? It is smart to consider mortgage options when you are preparing for homeownership.
3 Types of Loans
When it comes to different types of loans, it really has to do with the money that you will be putting down for the purchase.
- FHA Loans: If you are looking at FHA loans, it means that you need to be ready to put 3.5% down. But it’s important to note that it’s eligible for down payment assistance, which could potentially bring it to 100% financing for the home purchase (meaning you don’t need to bring cash to the table to buy a home).
- VA Loans: A VA loan is 100% financing, up to about $450,000 in Riverside County. This loan program has the best payment available, which is a good option if your cash flow will be tight. Managing the monthly payment will make it easier to handle your budget concerns.
- Conventional Loans: In comparison, a conventional loan is going to require 3% down, but it also qualifies for down payment assistance. Again, you can bring it up to 100% financing if needed.
Many different buyers will have unique needs. Luckily, there are various loan programs that can be considered to meet the individual needs. Don’t make the mistake of assuming that you won’t be able to qualify for the financing that is required. Instead, talk to a mortgage broker to learn about the options that will suit your personal situation.
Do you have other questions about the details of buying a home? It is essential that you have a team of professionals to assist with this process. I’m here to help with the real estate industry, and I’m happy to provide recommendations for trusted mortgage brokers in the area.
Contact me right away if you are preparing for a home purchase. Call, text or email: (951) 473-0390 or [email protected]