More than seven million homes are bought and sold each year in the US. Are you going to be one of those buyers this year?
Luckily, there isn’t just one type of mortgage loan available anymore. In the past, things weren’t as flexible. But today, mortgage companies understand that borrowers come from all different backgrounds, career choices, and income levels.
With the number of mortgage options available, almost anyone can find a mortgage that suits their needs so they can buy a home and stop paying rent each month.
Wondering which type of mortgage loan is right for you? Keep reading below to find out now.
Are You a Veteran?
American heroes don’t always get the appreciation, respect, and gratitude they deserve. At the very least, when it comes to mortgage loans, they do get first-class treatment.
VA loans are mortgage loans guaranteed by the Department of Veterans Affairs. And they allow those who meet military service requirements to get the best possible mortgage loan in the US.
With a VA loan, you can put 0% down on your home purchase. You can even roll much of the closing costs into the loan so that you can buy a new home next do no money out of pocket. Plus, the VA mortgage rates are very low.
If you can qualify for a VA loan, you definitely want to get it.
Are You a Doctor?
Doctors are also heroes in this country, saving countless lives on a daily basis. And when it comes to mortgages, they might qualify for a doctor loan.
If you qualify for a physician loan, you can also bypass the down payment and get into a home without much cash. And you won’t even have to pay private mortgage insurance (PMI) which is common for other loan types.
These loans are geared towards new doctors who recently graduated. Their income level still isn’t super high, but their student loan debt is extremely high.
Mortgage lenders take this into account and make exceptions for physicians who will make a lot of money in the future and are unlikely to default on their loans. Head to this page to discover more on doctor loans.
Type of Mortgage Loan for Low-Cash Borrowers
Are you low on cash, but aren’t a veteran or a physician? There are still affordable mortgage options available.
The FHA loan is one of the most popular. It allows borrowers to pay as little as 3.5% down on their homes. But unlike the two special loans above, you will need to pay PMI each month.
Conventional if You Can
Even with flexible mortgage options available, many borrowers still choose the conventional loan for the streamlined process and low purchase and refinance rates. If you put enough money down, you can avoid paying PMI.
Searching for the Perfect Loan
There isn’t one type of mortgage loan that beats all the rest. It just depends on your circumstances. Ultimately, the best type of mortgage is the one that you qualify for, so you can start building equity and stop paying rent.
So be sure to explore all your options and never give up.
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