Types of Loans

There are a few different mortgage options in the United States. These include Conventional, FHA, VA, USDA, and ARM.

Conventional

A Conventional loan is the most common type of loan. These loans usually have the best interest rates. This loan has a standard down payment of 20%, but on occasion some banks will accept a minimum of 10% down. A Conventional loan is a good loan for repeat buyers.

Federal Housing Administration

An FHA loan, also known as the Federal Housing Administration loan, makes ownership more affordable. This loan requires less down payment and has easier credit requirements. The loan usually requires 20% down, but has a minimum of 3.5% down payment depending on the bank. This a a good loan for first time home buyers.

Veterans Affairs

A VA loan, also known as a Veterans Affairs loan, is a loan only available only to veterans. It takes away the need for a down payment without the risk of PMI.

United States Department of Agriculture

A USDA loan is another type of loan that is available. This loan, also known as the United States Department of Agriculture loan, is a mortgage option developed to promote the purchase of rural land. This loan requires a 0% down payment and is best for those who are investors.

Adjustable Rate Mortgage

The last loan available is the ARM loan, also known as the Adjustable Rate Mortgage. These rates start out lower than any other option, but tend to fluctuate with the market. The standard down payment is 20%, but one can possibly pay as little as 10%. This loan can be best for anyone who is interested.

These are the different types of loans available to you as a consumer! If you have any questions, I would love to help you answer them to the best of my ability. Give me a call at 317-650-5898 for help!

Elaina Musleh

Bif Ward Real Estate Group

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Direct Office: (317)580-7806

Direct Cell: (317) 650-5898

ermusleh@gmail.com