Introduction
No doubt the experience of buying your first home is the one that is filled with overwhelming feelings and a lot of happiness. This is a crucial step ahead in your life and something that should be celebrated. But at the same time, it should be made sure that all the elements are taken care of in a very careful manner.
One such area that every homeowner has to deal with his home loans. A lot of first-time homebuyers are not aware of different types of home loan programmers and mortgages that they can avail themselves. Hence, in this article, we will mention different types of programmers so that you can make the right choice about the program that speaks to you and fits your needs.
FHA loan
This is the loan programmed most recognized and also the go to loan programmed. This programmed is suitable for all those candidates who have a weak credit score history. This is especially crucial for young couples.
Given today’s economic climate, a young couple is barely able to save money and be able to meet their expenses. That is why we have seen in research and otherwise that the credit history of young people in today’s age is very poor. That is why a lot of time banks and mortgage companies deny the request for house mortgages.
However, the Federal Housing Administration loan programmed is a savior for these types of people. Their guidelines make sure that they guarantee a portion of your house mortgage. This encourages lenders to allow and accept your applications.
Another benefit of an FHA loan is that the markup that you have to pay is very low.
VA Loan
This loan is specifically for the families of veterans who have served in The U S military. We have seen in researchers that the affairs of veterans are not very well managed and a lot of veterans are living near the poverty line.
A considerable number of them also depend upon food stamps.
Given that situation, it is a very common sight that a lot of veterans are going to buy their first home this late in their life. However, the U S department of veteran affairs has facilitated this process for them and has made provisions for a special loan for them.
This programmed availed by serving Members of the armed forces, veterans and their surviving spouses. In this house mortgage programmed they are not mandated to pay the down payment or even the mortgage insurance.
However, this loan programmed takes a lot of time and is not the best when it comes to servicing.
There are some very minimal requirements that need to be met in order to be qualified for this. These requirements include having a sufficient source of income and disclosing the debt of the person who’s applying for the loan.
USDA loan
Most banks and home mortgage companies neglected rural areas of America. That is why the U S Department of Agriculture has stepped in to bridge this gap. You do not have to live on a farm or own a farm in order to qualify for this loan.
In order to qualify for this loan, you need to live in a rural place.
In this programmed you are provided with 100% financing which means that you are not supposed to submit and deposit the down payment. However, for different regions there are different categories of incomes that can qualify for this loan.
Fannie and Freddie
The name of this house mortgage programmed might sound very odd. But this is a programmed that is initiated by the federal government where they assist and facilitate the process of house mortgage through commercial banks and lenders.
Under this loan programmed, the first-time house buyers are afforded some very appealing house mortgage deals. In these options, you do not have to pay the 30% down payment. But rather it is reduced to merely 3%. This is a huge facilitation. This makes sure that more and more people can come into the housing market.
