The best type of home loan depends on your situation. If you have great credit and a 20 percent down payment, conventional loans usually offer the best value. If you need extra help qualifying due to lower credit scores or income, anFHA loanmight be better.
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What type of mortgage is best for You?
What Type of Mortgage Is Best for You? 1 Fixed-rate loan or adjustable-rate loan. When deciding on a loan type, one of the main factors to consider is the type of interest rate you are … 2 2. Conventional loan or government-backed loan. 3 3. Jumbo loan or conforming loan.
What are the different types of Home Loans?
1 Fixed-rate loan. The most common type of conventional loan, a fixed-rate loan prescribes a single interest rate鈥攁nd monthly payment鈥攆or the life of the loan, which is typically 15 or 30 … 2 Adjustable-rate mortgage. … 3 FHA loan. … 4 VA loan. … 5 USDA loan. … 6 Bridge loan. …
What are the best loans for first-time home buyers?
FHA loans are backed by the Federal Housing Administration and are a popular option for first-time home buyers. To qualify, you need to have a 3.5% down payment and a minimum credit score of 580. If you have a credit score of 500 or higher, you can qualify for an FHA loan with a 10% down payment.
Which type of home loan is right for You?
There is no 鈥榬ight鈥?answer to the question, 鈥淲hich type of home loan is best?鈥?In fact, the best answer is, 鈥渋t depends.鈥?No two home buyers are alike, so it鈥檚 up to you and your loan adviser to choose the mortgage program that works best for you.