In the US, home loans ranging from a first home buyer loan to a mortgage for self employed are fairly common. Because people tend to have different needs and different financial situations, there are different types of mortgages to fit each lifestyle. Understanding the various home loan options from your mortgage companies in Georgia is important for getting the mortgage that best fits your needs.
First Home Buyer Loan to Mortgage for Self Employed: Understanding Your Home Loan Options
When you prequalify for a mortgage whether it’s a first home buyer loan or a mortgage for self employed, a lender doesn’t just look at your credit score. The lender also looks at the amount of existing debt you have, how much you earn and how much money you can put down. That information determines whether you’re eligible for a conventional mortgage, a Federal Housing Administration (FHA) mortgage or a VA loan. Conventional loans typically require a larger down payment, while an FHA mortgage allows you to put down 3.5 percent. The VA program lets you put down 0 percent, but you only qualify for this type of mortgage if you are a veteran or in the military.
From there, you want to look into specific loans that fit your needs. Is this your first home? A first home buyer loan may be right for you. Are you self employed? A mortgage for self employed can be a great fit. Are you looking for a certain term? A fixed rate mortgage can help. It’s important to research your mortgage companies in Georgia to see the loan options they offer and compare.
How Do You Qualify for Loans?
Conventional loans often have the toughest requirements. It can be difficult to qualify for a conventional mortgage if your credit is lower than 650. The credit requirements for an FHA loan are much lower. Your score can be 580 if you put down 3.5 percent. If you make a down payment of ten percent, you can qualify for an FHA mortgage with a score of just 500. However, the interest rates can be higher on the FHA loan.
At BrightPath, mortgage specialists can talk to you about a wide range of loans that can work with your credit score.
The down payment is another issue when it comes to qualifying for home loans. Typically, conventional mortgages require a larger down payment than VA or FHA loans (a twenty percent down payment is considered ideal). However, Fannie Mae has a program that allows certain buyers to qualify for a conventional mortgage with just a three percent down payment. The mortgage program does have some income limits and also requires that at least one buyer be a first-time home buyer.
Mortgage and Home Ownership Resources
The good news about mortgages whether it’s a first home buyer loan or a mortgage for self employed, there are a lot of resources out there to help you find the loan that best meets your needs.
For example, mortgage lenders offer support and assistance during every part of the mortgage and home buying process— from getting prequalified to finding your home to securing the actual loan.
At BrightPath, we offer a range of loans such as a first home buyer loan, FHA Loan, VA Loan, mortgage for self employed, fixed rate mortgage, and more. For a free consultation gives us a call at 888-222-6003 today!