Successful Methods to Finance Your Dream Home
dream home
Finding the right mortgage and financing doesn’t have to be complicated.
It will require you to do a little research into the different mortgages available in your area and the types of mortgages you qualify for.
However, this research could end up saving you thousands of dollars.
Here are some successful methods to finance your dream home.
Get a Conventional Loan
With a conventional loan, your mortgage is not insured by the federal government.
The choice is between a nonconforming and a conforming loan. Conforming loans fall within limits set by the FHFA. Loans that don’t meet the Federal Housing Finance Agency’s guidelines are nonconforming.
With a conventional loan, you will probably need to pay private mortgage insurance and will need to have 20 percent of the home’s purchase price upfront.
This type of loan is great if you have strong credit, employment history, and income.
You should be able to make a down payment of at least three percent.
Government Insured Loans
The US government does not serve as a mortgage lender. However, it is interested in helping Americans become homeowners.
For that reason, the US government will work alongside mortgage companies, ones like AJM Mortgage Inc, to back mortgages.
VA loans, USDA loans, and FHA loans are all government-backed options that make home buying possible for people who might not have a high income, pristine credit, or a sizeable down payment.
Some government-insured loans have stipulations. For example, a USDA loan requires you to purchase a home within a USDA eligible area.
VA loans are only available to US military members, whether they are active-duty, veterans, or military family members.
Fixed-Rate Mortgage
Suppose a fixed-rate mortgage maintains the same rate over the life of your loan.
This means that your monthly mortgage payment never changes. Fixed loan rates come in terms of 15, 20, or 30 years.
The benefit of a fixed-rate mortgage is that your monthly principal and interest payments don’t change for the life of the loan.
It makes it easier for you to budget from month to month. On the downside, you will need to pay more interest than you would with a term loan.
This post just scratches the surface of financing and mortgage options available.
Construction loans, interest-only loans, balloon mortgages, and adjustable-rate mortgages are other options that may be available to you.
Before deciding on any loan, review your circumstances and needs.
Take the time to do your research to ensure that your financing options align with your goals.
Category: Housing
