There are over 10 types of loans to choose from but the three most common are VA, FHA and Conventional. In order to decide which loan will be best for you, first let’s begin with defining what each one is.
VA loan is a mortgage guaranteed by the US Department of Veterans Affairs. Only eligible veterans can obtain this loan and a down payment is not required.
FHA loan is a mortgage issued by the Federal Housing Administration’s approved lender. The minimum required amount of down payment is 3.5% of the sale price of the home you would like to purchase.
Conventional loan. A conventional loan is a mortgage that is not part of a specified government program and is usually fixed in its terms and rates. Down payments are determined by your qualification.
Now that you know what the most common loans entail, you have a better understanding of what is best. Keep in mind, not only are there different loans to choose from to purchase a home, but there are also down payment assistance programs that cater to specific industries and personal needs.
An experienced agent like Hubert Tate can point you in the right direction! For more information contact Hubert Tate & Company of Keller Williams Realty.