Financing Options
There are plenty of different financing options to choose from when you are applying for a loan. It can be a little confusing to understand them all at first, but we will make sure you get the right one.
Fixed Rate Mortgages - These are the oldest type, and they come in 10, 15, 20, and 30 fixed rate mortgages. All of these will be amortized.
FHA Loans - These types get insured by the government by mortgage insurance which is then funded through the loan. These are excellent types for FHA loans because FICO scores do not affect them and the requirements for down payments are usually minimal.
VA Loans - Veterans who served in the United States Armed Services are eligible to get a loan from the government known as a VA loan. The requirements are different depending on the type of discharge when the service took place. VA loans are beneficial because they do not require the borrower to have a down payment. The Department of Veteran Affairs guarantees these loans, but they are funded by lenders.
Interest Only Loans - These loans do not really consist solely of interest, so they can seem misleading. They have an option that allows the borrower to make a payment that is interest only. There is only a certain period of time that this option will be available. Of course, there are junior mortgages that can actually be interest only. They require balloon payments, which consists of the balance of the loan at maturity.
There are plenty of other types of mortgages that are designed to give you the options and flexibility you need to get a loan. They include Optional ARM mortgages, Piggyback/Combo mortgages, Adjustable Rate loans, Buydowns, Swing loans, Equity mortgages, and more. They can get confusing, but we can help you find the right one for your situation.
