- Different types of mortgage loans. Which ones might be right for you?
- Learn about the types of loans in the United States for the purchase of a property
- Choose the mortgage loan that suits your needs so you can buy your home
Different types of mortgage loans. Which ones might be right for you? Buy a house in the United States it is one of the goals of the majority of those who live on American soil. For those with a good credit history, it is a step forward to begin the process of finding the home of their dreams.
During the process, one of the steps that must be completed is the approval of a mortgage loan which will allow that, once approved, the purchase can be completed and once the closing cost has been assumed, proceed to officially be a homeowner .
Types of Mortgage Loans
One of the types of mortgage loans that exists within the United States is the FHA Loan Program, from the Department of Housing and Urban Development (HUD), which offers two types of programs that, in some cases, can make the buying process cheaper.
According to the information contained in its web portal, before the applicant submits their application, they must determine how much the initial payment is, what the closing costs would be and what their credit score would be. “Closing costs may be partially covered or lower than other loans,” quotes the information on the website.
How to apply for FHA Loans?
An important point to note is that the FHA does not make loans directly to applicants, but rather this program provides mortgage insurance to approved lenders to protect them, in the event that the homeowner defaults on loan payments. .
To apply for it, the applicant must look for a bank or lender approved by the FHA, and once they find the financial institution that meets their needs, the applicant will start the FHA loan application process. For more information on this program access here.
Freddie Mac’s Home Possible
For those who are in the process of buying their first home or for those with low incomes, this type of loan is ideal since one of the facilities that Freddie Mac’s Home Possible offers is that the low cost of the down payment, in most of the cases 3% of the property.
Freddie Mac’s Home Possible also offers the opportunity to repay the loan within 30 years. your interest rate from 2017 to July 2019, the highest rate was 4.9%, and the lowest was 3.4%. According to web portal Smart walletRegarding the Freddie Mac Home Possible interest rate from 2017 to July 2019, the highest rate was 4.9%, and the lowest was 3.4%.
Veterans United Home Loan
This home loan program is designed for those who are in or have served in the United States military. It is a program aimed solely and exclusively at the military and only applies to the purchase of a home.
Among the facilities of this type of loan is that of an initial payment of 0%, added to a fixed interest that ranges from 4.625% to 4.125%; offering loans for periods of up to 15 years, being able to apply for the initial payment exemption, if the beneficiary has a credit score of at least 620 points.
Mortgage credit in the United States
The mortgage credit is a loan that a bank makes to a client so that he can make the dream of buying his house come true. This credit not only allows you to buy a property, but also to refinance a previous mortgage or remodel or build your house.
One of the advantages that mortgage credit has over banks is that the bank charges an initial payment and monthly payments with an interest rate that can be around 3 to 5%, depending on the bank. When the applicant chooses a mortgage loan, he has the facility of being able to opt for a fixed or variable interest rate, or with certain guarantees.
Advantages of the Mortgage Credit
* Very low interest rates, ranging from 3% to 5%.
* Support programs for the purchase of the first home.
* Support programs in case the client cannot make their payments.
* Initial payments that can be from 0%.
* Special credits for veterans and low-income people. Filed Under: Different Types of Loans.
Disadvantages of Mortgage Credit
* Real estate agent commissions range from 3% on the amount of the loan.
* The interest rate can be raised when negotiating with the financial institution.
* Rates are variable and can be raised up to 8.5%.
* Loans are conditional on a good credit score of more than 580 points.
* The shortest period that the applicant can wait to receive the credit is 30 days. Filed Under: Different Types of Loans.
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