Types of Mortgages

There are several types of loans available for purchasing a home. Some common options include:

1. Conventional Loans: These are traditional mortgage loans offered by private lenders and not backed by government agencies. They typically require a higher credit score and a down payment of at least 3%.

2. FHA Loans: Insured by the Federal Housing Administration (FHA), these loans are designed to help first-time homebuyers or those with lower credit scores. They often require a lower down payment of 3.5% and have more flexible qualification criteria.

3. VA Loans: Available to eligible veterans, active-duty service members, and their spouses, VA loans are guaranteed by the Department of Veterans Affairs. They often offer favorable terms, including no down payment requirement and competitive interest rates.

4. USDA Loans: These loans are backed by the U.S. Department of Agriculture and are designed to promote homeownership in rural and suburban areas. They offer low to no down payment options and have income limitations.  There is a Direct USDA Loan based on income and loaned through the USDA Department.   The Guaranteed USDA Loan is through a lender.   

It's important to consult with a mortgage lender or loan officer to determine the best loan option for your specific situation and eligibility criteria. They can provide personalized advice based on your financial profile and help you navigate the loan process.   If you have any questions and need lending advice reach out to Caroline Neirenhausen with C2 Financial.