A conventional loan might be the most common, but that doesn’t make it right for everyone. Conventional loans come with the most stringent credit and income requirements of all and, in many cases, require bigger down payments, too. But there are other options.
If you’re cash-strapped, have less-than-perfect credit or just want lower upfront home buying costs, you can also look to:
- FHA loans – FHA loans are mortgages backed by the Federal Housing Administration. They require down payments as low as 3.5 percent and need only a 580 credit score to qualify.
- VA loans – VA loans, or Veterans Administration loans, are mortgages designed for military members, veterans and their immediate families. They require no down payment (and sometimes no closing costs) at all.
- USDA loans – USDA loans are mortgages guaranteed by the U.S. Department of Agriculture. They for use on homes in designated rural areas and require no down payment whatsoever.
The right option for you depends on your income, credit score, down payment savings and other financial factors, as well as where you’re looking to buy. A mortgage broker or loan officer can help you determine which option is best for your scenario.
The information contained on this website is for informational purposes only and is not an advertisement for products . The views and opinions expressed herein are those of the author and do not reflect the policy or position of Brokerage. Source: The Mortgage Reports