When it comes to buying or refinancing a home, just knowing which type of loan program is best for you could be the key to saving thousands of dollars with your new home loan! From first time buyers to seasoned investors and everyone in between, UNreduced Mortgage has the right loan for you!
Conventional Home Loans
A traditional fixed-rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan. Fixed-rate mortgages are available in terms ranging from 10 to 30 years and can be paid off at any time without penalty. This type of mortgage is structured, or “amortized” so that it will be completely paid off by the end of the loan term. Conventional home loans are available for 1-4 unit properties. Properties that are secured by a conventional home loan can be done as owner occupied dwellings or as investment or second-homes.
FHA Home Loans
FHA home loans are mortgage loans that are insured against default by the Federal Housing Administration (FHA). FHA loans are available for single-family and multifamily homes. These home loans allow banks to continuously issue loans without much risk or capital requirements. The FHA doesn’t issue loans or set interest rates, it just guarantees against default.
Sometimes mistakenly called the “First Time Buyer Program”, FHA loans allow any individual who may not qualify for a conventional mortgage to obtain a loan, and is NOT limited to first time buyers. These loans offer lower minimum down payments, lower credit expectations, and more flexible income requirements. FHA home loans are available for 1-4 unit properties. Due to the benefits of the FHA, properties that are secured by an FHA home loan can only be owner occupied residences. No investment, or second homes.
VA Home Loans
The VA Loan provides veterans with a federally guaranteed home loan and requires no down payment. This program was designed to provide housing and assistance for veterans and their families.
The Veterans Administration provides insurance to lenders in the case that you default on a loan. Because the mortgage is guaranteed, lenders will offer a lower interest rate and better terms than with a conventional home loan. VA home loans are available in all 50 states. A VA loan may also have reduced closing costs and no prepayment penalties.
VA home loans are available to military personnel that have served 181 days during peacetime, 90 days during war, or the spouse of a serviceman killed or missing in action.