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Buying your first home is a thrilling and slightly scary process. Aside from finding your partner, committing to a home for anywhere from 10 to 30 years is a big step in life. And navigating your lending options can be just as frightening if you aren’t sure what your options are. Luckily, there are a number of different types of home loans out there to choose from. Whether you’re interested in conventional loans like fixed rate mortgages or something a bit different, at Mortgage Investors Group, we’re here to help!
Top 3 Types of Home Loans for First-Time Buyers
1. Conventional Loans
These types of home loans are ideal for buyers with good credit and the funds in place to make a larger down payment. Most commonly, buyers choose to go with a fixed rate mortgage because it has many benefits including protection against sudden and frequent rate changes. However, there can be downsides to fixed rate loans as well, so be sure to speak with our mortgage specialists for more information.
2. FHA Loans
These loans are insured by the Federal Housing Administration. They are ideal for many first-time buyers because they feature smaller down payments, competitive interest rates and often have lower closing costs than other mortgage options. Additionally, those with lower credit scores can often qualify for this type of home loan and may also be eligible for a lower down payment of just 3.5%.
3. VA Loans
This type of home loan is designed to help US veterans, active-duty military members and surviving spouses only. However, if you do qualify, VA loans require zero down payment and offer competitive interest rates. Additionally, a minimum credit score isn’t needed to qualify.
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