Applying
for a mortgage can feel overwhelming, especially if it's your first time buying
a home. There are several different types of mortgages, and they all have
unique benefits and application requirements. Here's an overview of some of the
most common types of home loans.
Conventional
A
conventional Home Loan is typically an agreement with a private lender,
such as Sun West Mortgage. To qualify for a conventional mortgage, you may need
to meet certain standards relating to your credit score, income, and down
payment. If you have a fairly stable financial position, a conventional loan
may be a good option.
FHA
An FHA
loan is one type of mortgage that is backed (insured) by the federal government.
The Federal Housing Administration guarantees these loans, which usually have
eligibility requirements that are less strict than those of a conventional
loan. In many cases, an FHA loan is a good choice for first-time
borrowers.
VA
Another
type of government-backed mortgage is a VA loan. This type of loan is available
to those who have served in the U.S. military. According to the Department of
Veterans Affairs, VA loans may be available for active-duty servicemembers,
veterans, and surviving spouses. In some cases, VA loans may offer better terms
than other mortgage options.
Before you
start signing mortgage paperwork, it can help to understand the various
options. FHA, VA, and conventional loans are all different and may provide
distinct benefits depending on your circumstances.
