What Are The Major Types Of Mortgage Loans?

While on a home search spree for buying a decent new home for yourself, you may have come across terms like lowest rate FHA loans, VA loans in Washington, conventional mortgage loans, and so on. If you heard them a lot and have felt curious to know more about them, then you just have arrived at the perfect place. Let us elaborate on some of the major types of mortgage loans to you.


Conventional mortgages


A conventional mortgage loan is simply that kind of home loan which is not insured by the federal government. Although there are limits and guidelines set by the Federal Housing Finance Agency that categorizes such mortgages in either conformational or non-conformational mortgage loans.


If you are seeking a FHA loans in Seattle and have strong credit, a steady income, and an employment history, and are able to go with a down payment of at least 3 percent. Then you can opt for this type of mortgage loan. Conventional mortgage loans can be used for a primary home, second home, or investment property


Government-insured mortgages


Now there are 3 major types of mortgage loans apart from conventional mortgage loans that are insured or guaranteed by the government. Although mortgage lenders offer such loans, these loans are guaranteed by the federal government.


FHA loans: FHA loans are guaranteed by the Federal Housing Administration (FHA). By availing FHA loans in Washington, borrowers can avoid large down payments. As a borrower, you need to have a FICO score of 580 or above for 96.5 % financing with a 3.5% down payment requirement.


These are the most popular kinds of mortgage loans in the USA. With a strong credit history, you can choose to get a suitable FHA loan according to your financial circumstances. The better your financial behavior, the better chances of getting the lowest rate FHA loans in Washington while choosing repayment terms as per your choice.


USDA loans: USDA loans are offered by the United States Department of Agriculture and it helps the borrowers who have moderate- to low-income to buy homes in rural areas. You have to fulfill certain conditions set by USDA and you may not need to pay a down payment for your home.


VA loans: VA loans are offered by the Department of Veterans Affairs program. These mortgage loans are flexible, low-interest mortgages primarily for the members of the U.S. military (active duty and veterans) and their families. If you get a VA loans in Washington, you don’t require a down payment.


Choose The Best Suitable Mortgage Loans With The Right Now Mortgage Loans


If you are looking to buy a new home in Seattle and subsequently searching for apt mortgage loans, then consulting the mortgage experts at Right Now Mortgage can be very beneficial for you. Consult us now and let our professional expertise aid you in completing your home buying journey smoothly.