Types of Home Loans Great for Young Couples
home loans
Young couples just starting out have a few options for home loans. Whether you are looking for something simple or something with a lower interest rate, there is a loan out there for you.
You can get the home of your dreams without having to raise a lot of money. There are several types of loans that are perfect for people who don’t have much saved for a down payment and want low monthly payments.
Here are some of the best home loans for young couples.
FHA Loans
There is a loan program offered by the Federal Housing Administration that allows you to qualify for an FHA mortgage with a down payment as low as 3.5%. You can use this program if you have student loans or other debts that prevent you from qualifying for a conventional mortgage.
USDA Rural Development Loans
If you have a good credit score and a steady income, you can get a conventional loan.
If, on the other hand, your credit score isn’t as good or if you’re working in an unstable industry, it can be difficult to obtain a conventional loan.
If this describes you, a USDA Home Loan may be the perfect solution.
HomeReady Mortgages
HomeReady Mortgages are designed for people with low-to-moderate incomes and offer flexible credit requirements as well as down payment options.
Fannie Mae developed these loans to meet the needs of homebuyers with low to moderate incomes.
This type of mortgage is available for down payments as low as 3% and does not require a credit score.
Adjustable-Rate Mortgages
Mortgages with adjustable rates are those in which the interest rate is adjusted periodically. With this type of mortgage, the interest rate and monthly payment change with the market.
Those who may not qualify for a traditional fixed-rate mortgage or who want to take advantage of low rates now but are willing to risk higher rates in the future can consider an adjustable-rate mortgage (ARM).
Affordable/Workforce Housing
Affordable/workforce housing loans help low-income homebuyers enter the market.
Nonprofit organizations provide these loans to create affordable homeownership opportunities for households with incomes ranging from 80% to 120% of the area median income (AMI).
Conclusion
A home loan can be a suitable housing solution for a young couple just starting out in their careers and family life.
Besides the loans mentioned here, there are many others, including Jumbo loans, fixed-rate mortgage loans, loans for first-time homebuyers, and employer-sponsored loans.
Find the right home loan for your situation by talking with a lender in your area.
Category: Loans
