There are many options when it comes to purchasing a home. One of the biggest questions is what type of loan to utilize. Flat Branch Homes Loans offers a variety of different types of loans depending on your needs, including the USDA loan, VA loan, conventional loan, and FHA loan. Each of these loans varies by your needs.
USDA loan
The U.S. Department of Agriculture (USDA) loan allows you to purchase a home in a rural area with no down payment and a low interest rate. If you are looking to purchase in a rural area, or even a suburban area, this may be the loan type for you. Some of the positives for this loan type include the ability to receive up to 100% financing, there is no required down payment, low interest rates and monthly mortgage insurance, and flexible credit and income requirements. A Flat Branch loan officer can help you learn if this loan is right for you, or you can view an eligibility map for the property you are interested in here.
VA loan
The U.S. Department of Veterans Affairs (VA) loan was made for eligible veterans to assist in purchasing a home. Active veterans, discharged veterans, and medically discharged veterans are all eligible for the VA loan. Through this loan, most often, down payments are not required and there is a lower interest rate. With the VA loan, the borrower does not have to pay Primary Mortgage Insurance (PMI), lessening the monthly mortgage payments. Not only can the VA loan help you purchase a home, but you can also utilize it to refinance an existing loan or build a new home, as well as make improvements to an existing home. If you are a veteran and interested in the VA loan, a Flat Branch loan officer can work with you.
Conventional loan
A conventional loan is any home loan that is not supported by a government entity such as the VA or USDA loan. Conventional loans are traditional mortgages. Many things, such as interest rates and mortgage insurance, are variable with a conventional loan. Each person has a unique financial situation, which makes this loan flexible based on items such as credit score and loan amount. This is the most common type of loan. If you have questions about whether a conventional loan is right for you, contact a Flat Branch loan officer.
FHA loan
The Federal Housing Administration (FHA) loan program allows for low down payments with a reasonable interest rate. The FHA loan is designed to assist those with low- to- moderate income and a lower credit score. With this loan, it is possible to put down as little as 3.5% toward a home purchase. There is a 1.75% mortgage fee, plus a monthly mortgage fee with this type of loan. Flat Branch Home Loans is able to fully complete this loan from beginning to end due to our status with the U.S. Department of Housing and Urban Development (HUD), so come in today to see if this loan works best for you.
