No matter if you’re buying your first home, or purchasing a property you’ll use for vacation, Stonebriar Mortgage can help!
Among the most popular home purchase loans are:
• FHA Loans
• Adjustable-Rate Mortgages
• VA Loans
• Jumbo Loans
• Fixed-Rate Loans
FHA loans are government-provided, as they are offered through the Federal Housing Administration. They’re excellent for first-time home-buyers and are highlighted by their relaxed credit requirements. Typically, they feature a 3.5% down payment and lack maximum income/earning limits. Although mortgage insurance is required, these loans lack maximum income and earning limits. The maximum loan amounts for FHA loans vary by county, and the limits five counties in the Dallas-Ft. Worth area Stonebriar Mortgage serves can be seen here.
Adjustable-rate mortgages are loan agreements with fluctuating interest rates. Market conditions and financial indexes impact the loan’s interest rates, which then causes the mortgage payments to change or “adjust up” and down. Many refer to them as ARMs, and they usually begin with smaller monthly installments than fixed-rate loans. There are several types of ARMs, and borrowers should consult with a lender on which particular adjustable-rate mortgage is best for them.
For Veterans looking to obtain homeownership status, the Department of Veteran’s Affairs has a special loan program for those who qualify. The VA guarantees private lender-processed loans for Veterans, and offers enticing interest rates and 0% down payment. Like FHA loans, VA loans are known for their less-strict credit provisions. Closing costs can be financed, there’s no monthly insurance payments and they can be reused. Spouses, widows and widowers of Veterans can also qualify.
Any loan that exceeds the lending limit of $417,000 is considered a jumbo loan. These are not backed by government-sponsored entities Fannie Mae and Freddie Mac, as they are riskier loans given via big banks and private lenders. Jumbo loans are mainly used for luxury homes, and they have higher down-payment requirements (usually a 20% down payment is required) and interest rates due to being more expensive financing. Jumbo loans can come as fixed or adjustable-rate options.
Fixed-rate loans allow home-buyers’ monthly payments to be the same for the lifespan of the loan, as its interest rate is what remains the same. While these loans can come in 15 and 30-year agreements, home-buyers can build equity quicker by obtaining shorter-term loans. They’re great for first-time home-buyers since they’re easier to budget and manage for a household.
Stonebriar Mortgage specializes in home purchase loans around the Dallas-Ft. Worth area! Call today at (214) 669-3307.