Available Mortgage Loans

This abundance of mortgage programs has made it more important than ever to talk with a lender who can provide you with valuable guidance as to which mortgage loan will fit your budget and allow you to buy the home that you want.

Home buyers with little or no money down can still find home loans.  Qualified veterans can obtain a VA guaranteed mortgage with no required down payment.  USDA offers a similar program to the public for approved properties.  The Navy Federal Credit Union offers 100% financing to qualified members.

Borrowers with good credit can make down payments as low as 3 percent with Private Mortgage Insurance, or PMI.  For those with imperfect credit histories, FHA loans are an option with a minimum down payment of 3.5%

The most popular loan is the fixed rate mortgage where the interest rate, and principle and interest payment, remains the same for the entire life or term of the loan.  Terms can be 30 years, the most popular,  15 or 10 years.  The shorter the term the less interest is paid and equity in the home is built much faster.

An Adjustable Rate Mortgage (ARM) offers the advantage of a lower interest rate but the home buyer assumes the risk of interest rates rising during the stated terms of the loan.   These loans can be a great solution for  home buyers planning to move in a short period of time or paying their loan off early.  ARM’s need to be carefully researched as they can pose significant risk for the borrower.