What Are Your Mortgage Options?
If you're in the market for a home, one very important factor you'll need to consider is how you're going to pay for said home. Choosing the right type of mortgage loan is one of the most important decisions you’ll make in the home-buying process. With so many different options out there, it can be hard to find an affordable home loan that meets your financial goals. That's why MHQ - Mortgage Headquarters is putting our 20+ years of experience to work for you to help you make an informed decision. Take a look at some of the mortgage options available to see what best fits your particular needs.
Conventional Loan
A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government and conforms to the loan limits set forth by Freddie Mac and Fannie Mae. You can get a conventional loan at a fixed or adjustable rate. Conventional loans also require a larger down payment, so those buyers tend to have a more secure financial standing and are less likely to default. Conventional loan requirements vary from lender to lender, but 620 is typically the minimum credit score needed to be approved, and 740 is the minimum score you need to get a good rate.
FHA Loan
An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans. FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.
VA Loan
VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.
USDA Loan
USDA loans are zero-down-payment mortgages for rural and suburban home buyers. They’re mainly for borrowers who aren't wealthy and can’t get a traditional mortgage. Income limits to qualify for a home loan guarantee vary by location and depend on household size. Applicants with credit scores of 640 or higher receive streamlined processing. Those with scores below that must meet more stringent underwriting standards. And those without a credit score, or a limited credit history, can qualify with “nontraditional” credit references, such as rental and utility payment histories.
Trust the Best Mortgage Lender at the Lake of the Ozarks
Conventional Loan
A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government and conforms to the loan limits set forth by Freddie Mac and Fannie Mae. You can get a conventional loan at a fixed or adjustable rate. Conventional loans also require a larger down payment, so those buyers tend to have a more secure financial standing and are less likely to default. Conventional loan requirements vary from lender to lender, but 620 is typically the minimum credit score needed to be approved, and 740 is the minimum score you need to get a good rate.
FHA Loan
An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans. FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.
VA Loan
VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.USDA Loan
USDA loans are zero-down-payment mortgages for rural and suburban home buyers. They’re mainly for borrowers who aren't wealthy and can’t get a traditional mortgage. Income limits to qualify for a home loan guarantee vary by location and depend on household size. Applicants with credit scores of 640 or higher receive streamlined processing. Those with scores below that must meet more stringent underwriting standards. And those without a credit score, or a limited credit history, can qualify with “nontraditional” credit references, such as rental and utility payment histories.
Trust the Best Mortgage Lender at the Lake of the Ozarks
So, if you're in need of a mortgage for a new home, need to find out about your refinancing options, or have any other questions pertaining to mortgage lending, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have your best interest in mind. We've got more than 20 years of experience closing loans and making dreams come true, and can help you choose a mortgage program that's right for you!
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