Think you know all the ins and outs of mortgage loans? Think again!
1. More than half of all mortgage loans are conventional loans.
Conventional loans are often referred to as “conforming loans” because they meet the guidelines set by Freddie Mac and Fannie Mae. Conventional loans tend to be good options for the average homebuyer because they offer the choice of fixed rates, adjustable rates (ARMs), loan term options from 10-30 years, and relatively flexible credit requirements. Plus, you can eliminate private mortgage insurance with 20% down.
2. You can build your dream home for as little as 5% down.
You read that right. At Waterstone Mortgage, we offer the Single Loan Close Construction Program which requires a down payment of just 5%. Another major perk of this mortgage program is that there is just one loan that covers the entire cost of the lot, construction, and your permanent mortgage.
3. Many homes in rural areas, small towns, and even the suburbs are eligible for USDA loans.
Many people think USDA loans are just for farmers, because they’re backed by the U.S. Department of Agriculture. However, the program has been expanded in recent years to help families purchase homes in rural and suburban areas. This loan program is awesome because there is no down payment requirement, it often offers better terms than FHA or conventional loans, and the minimum credit score requirement is 620.
4. With just a 3% down payment, you can buy a house AND renovate it.
Our HomeStyle® renovation loans are perfect for those who fall in love with a home but have a couple updates they want to do. This mortgage loan program requires as little as 3% down, which helps you save on up-front costs for the renovations.
With a HomeStyle® renovation loan, you can buy a house AND renovate it for just 3% down.
5. You can get an FHA loan with a credit score as low as 620, and as low as 3.5% down.
FHA loans are insured by the Federal Housing Administration, which allows lenders to offer mortgage financing to more homebuyers – ones who may not meet the qualifications of conventional loan programs. So, you can get a mortgage loan even if you have less-than-perfect credit or not a lot saved up for a down payment.
Want to learn more about home loans or the mortgage lending process? Contact a local mortgage expert in your area.