Most common mortgage loan types

Written By Yolanda Johnson

  • Conventional

    • Down payment can be as low as 3% - 5%

    • Maximum loan amount is $548,250

    • Credit score driven, so the higher the score, the better your interest rate and mortgage insurance cost

  • Government – FHA / VA / USDA

    • FHA – These loans are insured by the Federal Housing Authority and can offer low down payment as well as higher qualification rations

    • VA – These are available for eligible veterans

    • USDA – These are designed for rural properties

Each loan has its advantages. Your specific situation is considered during the initial consultation with your lender when it comes to choosing the right mortgage loan for you. The three main factors taken into account for a borrower's purchase ability is their credit, income and assets. Your pre-qualification is a review by the lender of your income, assets, credit, credit history and loan request.

Yolanda Johnson https://www.yolanda-johnson.com
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