Owning your own home is similar to living the dream. Contrary to what many may think,
being called a home owner is not easy. This is simply because many people experience
financial difficulties thus they are not able to make their dreams a reality. This prompted
the government to come up with loan programs to improve the housing industry and at
the same time make the dreams of many people a reality. In this article, are some of the
loan programs that first time home buyers can use to make their dreams a reality.
being called a home owner is not easy. This is simply because many people experience
financial difficulties thus they are not able to make their dreams a reality. This prompted
the government to come up with loan programs to improve the housing industry and at
the same time make the dreams of many people a reality. In this article, are some of the
loan programs that first time home buyers can use to make their dreams a reality.
The federal housing administration was initiated in the early 1930s. Majority of the people
were unable to access loans due to default in loan repayment. The housing industry suffered
greatly during this period. Federal housing administration was started to enable people get
approved for loans easily. This type of loan is more common among first time home buyers
due to the fact that it requires a low down payment and credit score.
were unable to access loans due to default in loan repayment. The housing industry suffered
greatly during this period. Federal housing administration was started to enable people get
approved for loans easily. This type of loan is more common among first time home buyers
due to the fact that it requires a low down payment and credit score.
The veteran administration that was developed mainly to help veterans and surviving spouses
acquire homes. Surviving spouses are qualified for the loan as long as they did not get
remarried. This loan offers a zero down payment thus being very helpful. This means that your
home is one hundred percent financed. Savings are made due the fact that no premium
mortgage insurance is necessary although no down payment is required. It may end up being
very costly at the long run thus it’s advisable to make a down payment if you can.
acquire homes. Surviving spouses are qualified for the loan as long as they did not get
remarried. This loan offers a zero down payment thus being very helpful. This means that your
home is one hundred percent financed. Savings are made due the fact that no premium
mortgage insurance is necessary although no down payment is required. It may end up being
very costly at the long run thus it’s advisable to make a down payment if you can.
When many hear about united states department of agriculture, all that comes to their mind
is farming and food. The USDA now provides mortgage to enable people living in suburban
and rural areas buy their own homes. Once you live in the metropolitan areas, you are
automatically excluded from the loan. The minimum credit score required is six hundred and
forty in order for you to have a chance obtaining the loan.
is farming and food. The USDA now provides mortgage to enable people living in suburban
and rural areas buy their own homes. Once you live in the metropolitan areas, you are
automatically excluded from the loan. The minimum credit score required is six hundred and
forty in order for you to have a chance obtaining the loan.
Some other types of home loans are not backed up by the government. Conventional loans
are one of them. This types of loans are provided by private lenders such as banks but follow
Freddie Mac and Fannie Mae guidelines. This type of loans requires a high down payment and
credit score. An added advantage with this type of loan is that it offers a premium mortgage
insurance that is lower than FHA loan. Like other loans, paying your down payment actually
helps a great deal. You may find that although it may look costly, paying a high down payment
may help you save a couple of dollars at long last.
are one of them. This types of loans are provided by private lenders such as banks but follow
Freddie Mac and Fannie Mae guidelines. This type of loans requires a high down payment and
credit score. An added advantage with this type of loan is that it offers a premium mortgage
insurance that is lower than FHA loan. Like other loans, paying your down payment actually
helps a great deal. You may find that although it may look costly, paying a high down payment
may help you save a couple of dollars at long last.
Non-conforming loans do not adhere to the Freddie Mac and Fannie Mae guidelines. This
type of loans offers loans with a limit that is higher than required. They include the Jumbo
and Superjumbo loans.
type of loans offers loans with a limit that is higher than required. They include the Jumbo
and Superjumbo loans.
So with the knowledge about the available home loans, you can go ahead and choose the
one that best suits you.
one that best suits you.
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