Today’s homebuyer has
more financing options than ever before. From traditional mortgages
to adjustable rate mortgages and hybrid loans, there are financing
packages designed to meet the needs of virtually anyone. While
the different loan choices may seem overwhelming at first, the
overall goal is really quite simple: you want to find a loan that
fits both your current financial situation and your future plans.
Your lender will discuss different options with you.
An FHA loan is a U.S. government loan designed
to promote home ownership for people who might not otherwise be
able to qualify for a conventional loan. FHA loans have lower
qualifying ratios and require smaller down payments. FHA loans
require 3% of the sales price for a down payment.
FHA loans are not issued by the government;
rather, the loans are made by private lenders but insured by the
U.S. Government in case the borrower defaults.
A conventional loan is simply a loan offered
by a traditional private lender. They may be fixed-rate, adjustable,
hybrid or other types of loans. While conventional loans may be
harder to qualify for than government-backed loans, they often
require less paperwork and typically do not have a maximum allowable
amount. Conventional loans also require more of a down payment.
Financing Information
More Information
|
