Which Type of Home Purchase Loan is Right for You? Call us to get your Preapproval letter…This will let your Realtor and any potential seller know that you are able to afford the property you are seeking and will strengthen the validity of your offer!
If you are new to the world of home loans, or it has been a time since your last purchase, the number of options at your disposal is enough to make your head spin. You know all about the basic “new purchase” mortgage and what it entails, what are these other types of purchase home loans, and which one is right for your particular situation? Here at The Mortgage Network we will take a closer look at these loans so that you may decide which is best suited for your needs.
New Purchase Mortgage
The most common type of home loan is the new purchase mortgage, which is granted to home buyers so that they can finance the purchase of a new or existing home. When you begin your home buying quest it is important to familiarize yourself with the types of loans available and the terms that go along with them. The biggest difference in mortgage loans is the fixed-rate mortgage and the adjustable-rate mortgage. In today’s low rate environment, one would have to have a solid compelling reason for not taking the fixed rate option, such as you know you will be transferred in less than 5 years etc.
A fixed-rate mortgage keeps the same annual percentage rate (APR) through the life of the loan. The interest rate will never change and the homeowners can rest assured that their payments will remain the same until the end of the loan. An adjustable-rate mortgage, on the other hand, has an interest rate that will adjust periodically in the life of the loan. However, these loans typically have lower payments and come with the option to convert or refinance to a fixed rate at a later time. This type of mortgage is good for homebuyers that plan to live in their homes for only a few years.
VA Loans are for veterans of our Armed Services and if eligible have zero down payment option.
Rural Housing loans are available for certain pockets in the Tristate area that the government has deemed under populated…which are also100% financing.
FHA is a government insured loan and it requires a 3.5% down payment of the purchase price. There are variations of this program that offer First time home buyers may have a grant option of 2.5% and even a special program called the HERO’s program which offers a reduced rate! There is so many options, please call us The Mortgage Network to discuss and plan which option is best for you!
Ohio heroes make a difference in our lives by working hard in critical jobs every day. OHFA is proud to offer all the benefits of our First-Time Homebuyer Program to Ohio’s heroes at a .25% lower interest rate.
The Ohio Heroes Program is available to the following full-time employees who are:
- Firefighters, Emergency Medical Technicians or Paramedics – Sworn paid members of a fire department whose regular duties include fire suppression or prevention, emergency medical response, hazardous materials response.
- Health Care Workers – Certified, accredited, or licensed health care workers who are employed full-time as a medical resident or fellow, dental hygienist, nurse, nursing assistant, pharmacist, pharmacy technician, physician’s assistant, medical technician, technologist, or therapist.
- Police Officers – Individuals commissioned as a police officer by a federal, state, county, or municipal or township government, or a public or private college or university; must be sworn to uphold, and make arrests for violations of federal, state, county, municipal, or township law or respond to terrorism.
- Teachers – Individuals employed full-time by an accredited or state recognized public school, private school, or federal, state, county, or municipal educational agency as a state-certified classroom teacher or administrator in grades K-12 or higher education. Full-time instructors must teach a minimum of 12 credit hours per academic term. License and paystub from education facility required to validate credentials.