Im looking to buy a house. I know there are different loans. What are my options, what are the defferences between them, and what is the advantage of each loan? Sorry if this is all confussing, im not to sure what im talking about.
When I started Real estate sales in 1978 there were only about 7 or eight types of loans. Now there are dozens or maybe hundreds.
You need to find a very good and very experienced local loan officer that you can go over your data and they can help you find the best two or three loans for you and help you choose.
For example most people that are trying to put a small amount down on a home owner occupied loan seem to be choosing FHA. But maybe a VA would be better for you- or something else.
When I started Real estate sales in 1978 there were only about 7 or eight types of loans. Now there are dozens or maybe hundreds.
You need to find a very good and very experienced local loan officer that you can go over your data and they can help you find the best two or three loans for you and help you choose.
For example most people that are trying to put a small amount down on a home owner occupied loan seem to be choosing FHA. But maybe a VA would be better for you- or something else.
References :
1. Conventional Mortgage. Requires a 20% down payment. Credit score of 750 No monthly PMI payment. Few restrictions on the condition of the home
2. FHA requires 3.5% down payment, score of 680. A PMI payment is added to your monthly loan. Very restrictive as to the condition of the house. All repairs must be made prior to approval. Not good for Foreclosure or short sales since these are sold "As Is"
3. VA mortgage – no down payment but you must be a Veteran
References :