If you’re thinking of buying a home, you may already know that there’s much more to the process than simply finding the house that best suits you and your family. There are many other steps to take, not the least of which is getting pre-qualified for a mortgage loan.
That’s why working with the Home Loan Center team at Peoples Bank can be to your benefit. Our team of Renessa Knowles, Lacie Walton, and Cody Cypert has years of experience and expertise when it comes to helping its customers with home financing.
So, what are the best loans for homebuyers like yourself? Let’s look at some of the options.
Don’t have a lot of money to put toward a down payment on your first home? Then a Federal Housing Authority (FHA) loan might be your best option. In some cases, putting enough money down is a deterrent to first-time buyers, which is why an FHA loan is beneficial. Insured by the federal government, this type of loan allows you to put as little as 3.5% down. Another advantage to an FHA loan? It allows for a more lenient credit score requirement, which is often very helpful for the first time homebuyer, who may not have yet established much of credit history. Penalties for a low credit score – such as higher interest rates – are usually much less drastic with an FHA loan.
A Veterans Affairs (VA) loan is beneficial to any veteran who is a first-time homebuyer. If you or your spouse are a veteran, a VA loan provides 100 percent financing which means you don’t have to put any money down. Moreover, interest rates for VA loans are among the most competitive for fixed-rate mortgages. Another unique aspect of VA loans is the fact that they don’t require veterans to pay monthly mortgage insurance, which is usually required if a homebuyer’s down payment is less than 20%. Since its inception in 1944, the VA loan program has helped over 20 million veterans and their families find an affordable home financing solution.
If you’re able to save more for a down payment, a conventional insured loan may be the right choice for you. In contrast to an FHA loan, which only requires 3.5% down, you can pay as little as 5% down with a conventional insured loan and it will save you money upfront as well as after you’ve paid your mortgage down. Conventional loans are generally quicker to process than FHA or VA loans but they will require a better credit rating.
Ensure your home buying experience is as smooth and anxiety-free as possible, whether it’s your first home or your 5th. Buying a home represents an exciting milestone in your life. Contact the Home Loan Center team today at Peoples Bank (806-687-7245) to find out which loan is best suited for you. Our team is glad to serve you!