Gracie Morrow Mortgage Group spent hundreds of hours researching all different types of loans and have weighed all your options to give you the best mortgage and refinance interest rates that help you on your journey for the perfect home.
There is no correct answer to your question because there are so many possibilities for the type of home you choose. No two buyers are alike, so it's up to us here at GMMG to figure out which loan program is your best option.
At the end of the day, you want something that will help you buy a house affordably. How you get there is secondary.
How to start your mortgage search
Each home loan program has unique benefits that cater to a certain type of buyer. Your goal should be to find the one that matches your ‘wants’ and your ‘needs.’
You should always ask the following questions
- Which loan has the lowest monthly payment?
- What option requires the least amount upfront?
- What option will cost me less over time?
- Which loan type is suitable for my credit score?
- How does my income affect the products for which I’m eligible?
- What’s my price range for home buying?
- How long do I plan to stay in the home?
What type of Loans are available for me?
FHA Loan Pros
- 3.5% down payment requirement
- Low credit score requirement: 580 with 3.5% down or 500 with 10% down
- Down payment gifts and/orcan cover 100% of the down payment and closing costs
- Lenient income qualification
- Loan terms of 30 and 15 years available
- Fixed–rate and adjustable–rate mortgages available
- One– to four–unit homes are allowed; you can rent out additional units as long as you live in one
VA Loan Pros
- Very low mortgage rates
- Absolutely no down payment is required
- No mortgage insurance
- Very lenient about credit scores
- 15– and 30–year fixed–rate loans available
- Adjustable–rate mortgages available
- One– to four–unit homes are allowed; you can rent out additional units as long as you live in one
USDA Mortgage Pros
- No down payment required
- Low mortgage insurance fees
- Below–market mortgage rates
- Credit scores starting at 640 are eligible
- No loan limits
Jumbo Loan Pros
- Buy high–priced or luxury real estate
- Fixed– and adjustable–rate loans available
- Down payments may be as low as 5% or 10%
- Rates are often competitive
Adjustable Rate Mortgage Pros
The majority of home buyers choose a 30–year fixed–rate mortgage for its stability and low monthly mortgage payments. But if you plan to live in your home less than 10 years, an adjustable–rate mortgage (ARM) might be right for you.
- Get an ultra–low rate for up to 10 years
- Potential to save thousands in interest over the first few years of the loan
- Allows enough time to sell the home or refinance before the first adjustment
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