What is the Best Home Loan for Me?
What Types of Home Loans Are Available?
Conventional Loans - Ideal for Borrowers with Excellent Credit and a Substantial Down Payment
Conventional Home Purchase Loans are more credit score driven than other loan types and at least a 620 FICO score is generally required to obtain an approval through conventional loans. Conventional Loan guidelines are currently written in a way that a borrower with a 740+ credit score can usually obtain the best interest rate possible. As a borrowers credit score decreases below a 740, sizable fees and rate increases could be added, in excess of the 1-2 percent range. If your credit score is less than perfect, an FHA Loan, USDA Loan or VA Loan could be the best home loan for you.
FHA Loans - Could be the Best Home Loan for Borrowers who have Less Than Perfect Credit and a Small Down Payment
FHA new home purchase loan requirements are not totally credit score driven, although a 620 FICO score is generally required to obtain an approval. FHA mortgage guidelines are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they're generally going to be credit-eligible for an FHA mortgage.
USDA Loans - Could be the Best Home Loan for Those who have Less Than Perfect Credit and a No Down Payment
USDA Mortgages have no down payment requirement. Other loan programs don't allow this. Another distinct advantage of a USDA loan to purchase a home, as compared to a conforming loan, is great interest rates and no mortgage insurance (MI). A 620 FICO score is generally required to obtain a USDA loan approval.
VA Loans - Could be the Best Home Loan for Veterans of the US Armed Services
VA Home Purchase Loans are offered in recognition of the contributions and sacrifices veterans have made for America. VA Loans require no down payment and no mortgage insurance. A 620 FICO score is generally required to obtain a VA loan approval.
How do I choose the best home loan?
Choosing the best home loan mortgage is a very personalized process. It is very important to obtain as much information as possible about today's mortgage products so you can determine which mortgage is right for your situation. Loans-101 is committed to providing a valuable resource for borrowers to learn about their mortgage options.
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