What Type of Loan Should I Get to Buy My Home? There are many financing options available for homebuyers out there, each with their own unique advantages. FHA with only 3.5 percent down payment but For most veteran and active duty military members, I highly recommend the federally-backed VA Loan due to its distinct benefits over traditional loans. Advantages of a VA Loan: No Down Payment Necessary. Homebuyers will usually need at least a 5 percent down payment for conventional loans or a 3.5 percent down payment for FHA financing. On a $200,000 loan, thats $10,000 for conventional borrowers and $7,000 for FHA. For many first-time homebuyers, coming up with that kind of cash up can be challenging. Being able to purchase with $0 down means VA borrowers dont have to spend years saving to scrape together a big down payment. Less Stringent Qualifications. Many first-time homebuyers might not yet have a strong credit history, which can make it more difficult to get approval for a mortgage or qualify for an affordable interest rate. Since the VA Loan is government-backed, VA Loans are easier to qualify for at competitive rates. Lower Monthly Payments. Since VA Loans dont require the added monthly expense of private mortgage insurance (PMI), they tend to leave more money in your pocket each month. In addition, the competitive VA Loan rates can save a typical buyer thousands over the lifespan of the loan. Oh by the way.... If any of your friends or family express an interest in buying or selling a home, it would be an honor to work with them. Just give me a call and I’ll be happy to follow up, Im never too busy for you or any of your referrals..... Real Estate Source / Eloisa Torres / Realtor(R) Lic # 01305090 never2busy4u@yahoo (510) 331-1458 cell
Posted on: Fri, 23 Jan 2015 23:24:58 +0000
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