Common Mortgage Loan Options

When it comes to purchasing a home, choosing the right type of mortgage loan is one of the most significant decisions you’ll make in the home-buying process. There are many different options out there, it can be hard to find an affordable home loan that meets your financial goals long-term. Luckily, MHQ - Mortgage Headquarters is putting our 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 financial 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 the 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 don't have large savings and assist the buyer with minimal up-front costs. 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 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

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 team to have your best interest in mind. We have more than 20 years of experience closing loans and can help you choose a mortgage program that's best for you! 

 

Mortgage Headquarters of Missouri, Inc
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065

Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917

NMLS # 1229111

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