There are a number of loan programs available today for home buyers that suit a variety of preferences and financial constraints. If you don’t have an adequate credit history, there are a few options available other than a conventional loan, although they’re all subject to certain terms and conditions. You can benefit from knowing the differences between these type of loans and checking your eligibility.
Which Refinance Is Best: FHA, VA, USDA, or Conventional?
Below, we've listed a brief comparison of the various types of mortgage loan programs available today.
- FHA Loan: The Federal Housing Administration mortgage loan is an insurance-backed mortgage loan. It offers such benefits such as lower interest rates, lower thresholds of down payment, and higher loan limits, subject to certain terms & conditions.
- VA Loan: The Veterans Administration mortgage loan is intended for veterans, military personnel, and their surviving family members. This type of loan offers various features such as a zero-cost down payment, mortgage insurance, competitive interest rates, and flexibility across the lifespan of the loan.
- USDA Loan: The United States Department of Agriculture mortgage loan applies to those looking for a house in either rural areas or select suburban areas that are eligible. This loan program also accepts credit scores that are lower than average.
- Conventional Loan: A conventional loan is appropriate for those who have a good credit history and a healthy score. Most banks are willing to fund conventional loans, so you’ll find more options in this case. However, you may not receive additional benefits like the ones offered by other loan programs.
Drew Mortgage Associates, a well-known Boston mortgage lender, offers a wide array of services that include loan processing, consultation, and planning. Drew can help you find the right home loan program tailored to your needs, guiding you every step of the way to secure your dream house. Drew provides a careful analysis of each type of loan program to simplify mortgage loans for its clients.
For more updates on which mortgage loan program is right for you, please visit: https://www.drewmortgage.com/mortgage-loan-programs