This week’s mortgage moment is about loan types. There are several different loan options available so if you’re wondering which type is right for you, we’re going to try and steer you in the right direction. So here’s a quick break-down for you, number one, FHA loans.
The maximum loan amount for an FHA loan varies by the county you live in. In the state of Texas the range is as low as two hundred and seventy one thousand and in some counties up to three hundred and twenty six thousand. FHA has a low minimum down payment of 3.5 percent and requires private mortgage insurance.
Number two, VA loans. These loans are for active military, veterans and eligible surviving spouses. They require no down payment as long as the sales price doesn’t exceed the appraised value of the home.
Number three, Conventional Loans. These loans are intended for single family mortgage amounts equal to or under 7,000. With this type of loan, the minimum down payment is 5%. Any down payment amount below 20% on a conventional loan will require Private Mortgage Insurance.
Number four, USDA loans. While no down payment is required, the properties location, income, credit history and the number of dependents will determine eligibility.
And finally, number five, Jumbo Loans. This category refers to any loans over 7,000 threshold. The average interest rates on Jumbo Loans are typically higher than the rates you pay for conforming mortgage loans.
For more information on the different types of loans available to home buyers, visit skylinehomeloanstx.com
Disclaimer: The information contained in this video is distributed to consumers for educational purposes only based on loan officer experience and opinion. The information is deemed reliable but not guaranteed. Consult a licensed loan officer for more information.
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