Getting any kind of mortgage loan can be stressful. With so many different variations, knowing which one is best for you or your area can be difficult. Here at DDTMM, we offer a variety of home loan programs with some of the best mortgage rates in the Fort Lauderdale area. This blog post will discuss the types of loans that are available, some features of each mortgage, and what you can do to determine which options are best for you and your financial needs.
How Many Varieties of Mortgages Are There?
Because mortgage loans are customizable for the particular borrower and lenders, you could say that the varieties are unlimited. Listed here, you will find some of the more commonly offered mortgage programs.
1. Conforming Loans
Conforming mortgage loans are also known as conventional home loans. These loans follow specific guidelines and regulations set up by some of the leading lenders in the financing industry. When most people think of a home loan or mortgage, they are typically thinking of a conforming loan.
Conventional loans usually require a large down payment or the borrower to pay a monthly fee known as private mortgage insurance (or PMI).
The credit standards for this type of loan are pretty ridged.
2. VA Loans The Veteran’s Administration insures VA Loans. These loans are an available benefit to those servicemen and women who qualify under guidelines set out by the VA. This program was set up to assist our countries military personnel to afford housing for themselves and their families.
If you qualify for this benefit, many great qualities are made available to you, such as: • $0 down payment required • More flexible credit and income requirements • Lower closing costs • Better mortgage rates
3. FHA Loans The Federal Housing Administration insures FHA Loans. These loans were set up to help moderate to low-income families afford housing even when their credit history may not be perfect or flawless.
If you and the property you are looking at qualify to receive this type of mortgage loan, you also qualify for many fantastic features, including: • You may be able to pay as little as 3% down • As a borrower, your credit scores can be as low as 580 and still qualify you for a loan • Your down payment can be a qualifying family gift
4. Reverse Mortgages A reverse mortgage is a specific variety of loan that allows you to utilize the equity you have in your home. You must meet particular age requirements; however, this type of mortgage allows for a wide variety of financial options.
If you or your spouse are more than 65 and own a home, you may qualify to get a reverse mortgage. Some of the options available with this type of loan are: • You have access to the value of equity in your home. • You can use the money as monthly supplemental income to help with traveling, medical expenses, or even to buy a second home. • Unlike most mortgage loans you do not have to make payments on this loan every month. If you get this type of mortgage loan, the money owed will not come due until the property is no longer your home or primary residence, or you become deceased. At the time of death, the home is sold, and the profits gained from the sale pay off the loan.
5. Jumbo Home Loans A jumbo loan is a mortgage that has a higher value than standard loans. If the home you are looking to buy is over $430,000, it is likely you will need to qualify for a jumbo mortgage loan.
Jumbo loans can be harder to get approved for because the bank has more to lose.
Typically, lenders require large down payments and can sometimes request shorter loan terms due to the balances being lent.
Despite the difficulty that can be associated with this type of home mortgage, jumbo loans are often the best tool to get you set up in your dream home.
DDTMM and Choosing the Best Mortgage Loan for You
Our loan experts are ready for you to contact them regarding any of the home loan options discussed above. We can help you look over your financial situation and the reasons you are looking to get a Fort Lauderdale mortgage loan. Once we have assessed your financial needs, we will be able to discuss what programs best meet those needs. At DDTMM we have some of the best mortgage loan rates in the area. Reach out to our loan specialists and discuss with us which home loan is right for you today!