There are many mortgage loan programs are designed for homebuyers in the Pacific NW. You can choose the one that perfectly suits your requirements. Each loan program has its own eligibility criteria, specification, and down payment requirements. This infographic will tell you the key components of the mortgage loan program and help you to choose the best one. So, let’s get started.
Here you will get the details about the mortgage loan programs for home buyers along with down payment information. Also in this infographic, we have also mentioned a key few-mortgage- related terms that you should know before availing request for the loan.
- Fixed-Rate: Fixed-rate mortgage loans have consistent interest rates throughout the years. So, if you are okay with the fixed-rate mortgage loan program you can avail of the request for it.
- Adjustable-rate: In this loan program the interest rates will fluctuate over time. It is designed for buyers who low introductory rates and financially manage higher rates in the future.
- FHA: A federal housing administration loan mortgage program insured by the HUD. These loan programs bring homeownership into the reach for low. Or moderate-income buyers who might otherwise have a hard time getting approved by conventional lenders.
- VA: VA mortgage loan program is a government loan program that is available exclusively to the military veteran. Buyers who want low introductory rates and can financially manager higher rates in the future.
- Conforming: A conforming mortgage home loan is a loan which limit doesn’t exceed the sizes and it is imposed by the government. You can easily qualify for the conforming loan and the process is very easy. In many cases, you get the loan at the very low interest. One of the significant advantages of a conforming loan is that the smaller down payment and credit score flexibility.
- High balance conforming: A high balance conforming is basically a conforming loan. In this loan, the limit doesn’t exceed the high-cost living areas in which it formed. Buyers who are thinking to buy a home in high-cost living areas can avail of this loan.
- Conventional: Conventional mortgage loans refer to loans that are secured by the government or offered by a government-backed entity. They are the unsecured loans which means you don’t need to mortgage anything while borrowing loans for the bank. To offset the risk of losing money, the banks offer you a conventional loan at high-interest rates.
- Jumbo loan: A jumbo loan is also known as jumbo home loan that exceeds the federal limits. While availing this loan you need to submit a down payment of 10% or 20% respectively. This loan is designed for buyers who want to purchase a luxury home and the value of home loan is high.
- PMI: Private mortgage insurance is a form of insurance which is required by the lenders for loans that fall below a certain loan to value ratio.