3 Different Types of Mortgage Loans

Buying a house, whether it's for the first or nth time, can be very exciting. But, sorting out the financial part of it can be confusing. A house is definitely one of the biggest purchases you'll ever make, so figuring out where to get all the money you'll need isn't really the easiest thing.

Thankfully, there are different kinds of home mortgage loans that'll help you get your dream home. Here are three types of loans offered by banks that are equal housing lenders and member of FDIC:

Conventional Mortgage Loan

This is a type that's not insured or guaranteed by the federal government. It's backed by a private lender, and the insurance is paid by the person who's borrowing the money. Conventional mortgages can be divided into two types: conforming and non-conforming. 

The former means that the amount of the credit is within the maximum limits set by government agencies that back most US mortgages. Meanwhile, those that don’t meet those guidelines, like the jumbo loan, are considered non-conforming. 

VA Loan

A VA home mortgage loan is available through a program established by the United States Department of Veterans Affairs (VA). It provides a flexible and low-interest mortgage for the members of the US military, whether they're on active duty or a veteran, and their families. While the VA sets the qualifying standards and terms and conditions, they don’t provide the financing. Instead, it comes from private lenders, like mortgage companies and banks. 

FHA Loan

This is backed by the Federal Housing Administration (FHA) and is ideal for first-time homebuyers with a low credit score. With this, you'll only need 3.5% down financing if you qualify. An FHA loan can be used for cooperative housing projects, condominiums, and single-family homes. Apart from that, 203(k) Improvement Loan, a type of FHA loan, can be utilized to fund most necessary repairs your current home needs.

Look No Further Than Our Community Bank

These home mortgage loans have helped so many people settle into their dream homes. If you're looking to get a conventional, VA, or FHA funding, get in touch with an equal housing lender and member of FDIC like Table Rock Community Bank. We'll be happy to discuss your mortgage options and find the ideal one for you.