What Are The BEST Home Loans?

Are you considering moving or relocating to Colorado and you’re just kind of wondering what are the best home loan types, most people need financing to buy a home. Even with a large down payment, you’ll need a loan to make up the rest. Fortunately, you’re going to have many options. Mortgage guidelines have loosened up over the recent years making it easier for most people to secure a home loan. Here are the top current home loan types for buyers. 

Conventional Loans

You may have heard of conventional loans. Conventional loans are the typical home loan most people think of when getting a mortgage. Contrary to what most people think, though, you don’t need a 20% down payment. Conventional loans require just as little as 3% down for first time homebuyers and 5% down for subsequent homebuyers. You do however need decent credit. So conventional lenders typically require a credit score of 660 or higher to secure financing. In exchange for your good credit, you’ll get lower rates and fees and you can cancel private mortgage insurance once you owe less than 80% of the home’s value. 

FHA Loans

Next we have FHA loans. So FHA loans are government backed loans. Most people equate them with first time homebuyers, but they’re a great program for any borrower who doesn’t qualify for a conventional loan. FHA loans require just a 580 credit score, and a three and a half percent down payment. You can have a debt to income ratio as high as 50% Sometimes, and you could even have negative credit events and still qualify. The trade off for FHA loans is you’re gonna pay mortgage insurance for the life of the loan at this point in time. Unlike conventional loans, you can’t cancel the insurance once you owe less than 80% of the value. So you’re gonna be refinancing that,

VA Loans

VA loans are government backed loans for military members. If you serve at least 181 days during peacetime and have an honorable discharge, you might be eligible, the most flexible guidelines and don’t require a down payment, because they’re pretty much gonna supply the 100% financing. VA borrowers do have to have decent credit like 620 and above and have a debt to income ratio, possibly as high as 50%. The VA also is lenient about negative credit events as well, VA loans don’t charge mortgage insurance. But there is an upfront funding fee that all veterans have to pay unless you’re honorably discharged. 

USDA Loans

If you’re a low moderate income family. With good credit but can’t qualify for any other loan program, the USDA loan may be a good option for you, you’ll need at least a 640 credit score, and your total household income must be less than 115% of the average median income for the area. You must also prove that you don’t qualify for any other loan program and that you’ll live in a USDA designated rural area. 

The Bottom line

Choose the mortgage loan that is right for you. A mortgage can last for 15 to 30 years even longer in some cases. So look at all of your options carefully. Whether you have 20% down or just 3% As long as you have decent credit and stable income. There are loan programs available for you. Your mortgage is just one of the most important pieces of the puzzle when you’re thinking about homeownership. So evaluate your options early and get tips and tricks on how to increase your credit scores and decrease your debt ratios. For the best and most affordable loan for your needs. 

We make it ultra simple for our home buyer clients to get up and run out in the field looking at homes, we have a simple three step process. You’re gonna get one a mortgage calculator suite to figure out how much house you can afford, as well as what a potential home that you might be interested in looking at purchasing how much that monthly payment would look like.

Once you download that for free, you can also get onto my calendar for a quick discovery call where we’re going to learn about your wants, needs, maybe some of the hurdles that you have to jump over and get you started on the path to homeownership the very most simple and very right way.

During that discovery call quite simply, we are going to start to create a clear home buying plan for you so that you can add the home of your dreams to your real estate portfolio. If you have a friend, family member or co-worker looking to buy, sell or refinance, share this information with them as well. We would be happy to help them on their home buying journey as well.