Don't
know which type of Mortgage Loan is best for you?
Find out below.
Conventional Fixed Rate Loan
Conventional fixed rate loans require a
minimum of 5% down and a fairly good recent credit history. Down
payments must be
from your own funds. The interest rate remains the same for the term of the loan.
Conventional Adjustable Rate Loan
Conventional adjustable
rate loans also require a
minimum of 5% down and a fairly good recent credit history. The interest rate
remains fixed for the first 1, 3, 5, 7 or 10 years. The rate will adjust with the
market after the initial fixed rate period according to the terms established when you
close. A low initial rate may help you qualify for a larger loan.
FHA
Loan & VA Loan
Government loans often allow slightly
less-than-perfect credit records. They are not restricted to first time home
buyers. If you've had a bankruptcy discharged and good credit since, you may qualify
after two years. Gift down payments are permitted.
Government loans allow a higher debt ratio than conventional loans.
FHA loans require only 3% down and can be fixed or adjustable rate loans.
VA loans have a zero down payment and are fixed rate only.
Non-Conforming Loan
Non-conforming loans often allow imperfect
credit and higher debt than conventional loans. Some loans can be approved with
limited documentation of income, debt, employment and assets. These loans offer
substantially higher interest rates, but may allow you to buy a home when your credit is
poor or you are self-employed. Most, but not all, require substantial
down payments.
MLS
Chicagoland.com
