Article provided by: Fairway Mortgage - The Potempa Team
Congratulations on making a move to Phoenix! We rank among the fastest-growing cities in the nation thanks to our great climate and plentiful sunshine. To ensure you can lock in the best interest rate on your new home, give The Potempa Team a call at Fairway Mortgage in Phoenix!
Types of loans
- Conventional Loans-A conventional home loan is a loan that meets terms and conditions set forth by Fannie May and Freddie Mac. These loans require a downpayment of approximately 20%.
- FHA Loans-FHA loans are loans backed by the Federal Housing Authority. They require a lower downpayment than conventional loans and are for lower-income and first time home buyers.
- VA Loans- These loans are specifically for veterans, active-duty military, and their families. A VA loan allows a veteran to receive a home loan without any downpayment or mortgage insurance.
- USDA Loans-These loans allow borrowers to receive a loan without a downpayment if they meet a specific set of criteria. These loans are specifically for homes in rural areas.
- Jumbo Loans-Jumbo loans are the type of loan made on higher-value real estate properties. They require that the home be your primary residence and a 10% downpayment.
How do you pick your loan type?
Work with your mortgage company to determine what type of loan best meets your needs. If your primary interest is property in rural areas, then see if you qualify for a USDA loan. If you are a veteran, then obviously you will pursue a VA loan. If the house you want to buy is a higher dollar property, then you need a jumbo loan. If you are a first-time buyer, look into FHA loans.
This is why picking an outstanding mortgage company, like Fairway Mortgage in Phoenix, is so very important. They will meet with you to understand what type of property you are interested in. They make sure to get you pre-cleared, so you know what your budget is. And then, with the information you have given them, they ensure you are in the best loan category for your needs.
Why not just go to my bank for a loan?
Bank loans come with a variety of restrictions. Those loans meet qualifications from the two largest home loan lenders in the US, Fannie Mae, and Freddie Mac. As a borrower, if you fail to meet their criteria, you will not qualify for the home buying process at a traditional bank. If you opt to go with a mortgage company, they can find a variety of loan options for you. Their job is to find you the best loan and the best loan products, whereas a bank only has access to their own services.
Let’s get you started on finding your dream home in one of the fastest-growing cities in the US. Don’t delay! Give The Potempa Team at Fairway Mortgage in Phoenix a call so we can put you on the road to homeownership.Fairway Mortgage Phoenix
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