There are various first time buyer home loans that you can access for a step closer to your dream home. The best home loan rates depend on whether you choose the right loan depending on your financial situation and the home that you want to purchase. The following are some of the loans which you can go for when purchasing a home.
Fixed rate mortgage loans are one type of loans that you can get for buying a new home. Fixed rate mortgage loans are quite common among many home buyers. This is because the interest rate and principle stay the same for the entire loan duration. Fixed rate mortgage loans have the best home loan rates which are always at a record low. These loans come in a variety of payment durations, between 10 and 30. You can choose the loan duration that will fit either your long term or short term goals.
The greatest advantage of the fixed rate mortgage loans is that your rates and payments will always be constant; there are no effects of inflation of changes in average interest rates. This makes it much easier to manage the home and the mortgage as well. The only concern about fixed home mortgage loans that you need to know is that in order to fully enjoy the low interest rates; you may need to go for a refinancing option at some point.
Other first time buyer home loans include the Federal housing administration loans or the veteran affairs loans. The FHA and the VA are government loans that are quite affordable. FHA loans offer you flexible credit requirements, low down payments on purchase loans as well as a high loan-to-value allowance on refinances. Eligibility for FHA loans includes consistent income and therefore a steady employment history, a good credit score and a down payment of 3.5%.
VA loans are loans given by the government to veterans of the US military. Veterans enjoy advantages such as no monthly private mortgage insurance requirements, flexible qualification and for some buyers, 100% refinancing. Individuals who qualify for these loans should either be veterans, active in duty or part of the reservists. However, surviving spouses for the individuals in any of the previous mentioned categories can also qualify for these loans. Other requirements include a good credit score, an appraisal conducted by a VA-assigned appraiser.
If you are looking for financing a luxury home, you may require a lot of funding. If you are qualified beyond stipulated loan limits, you may be eligible for Jumbo Loans. Qualifying for jumbo loans is difficult because of the very stringent criteria placed. This is because of the high risk faced by lenders. If you default the loan payments, the residence will be very difficult for the full price. Luxury home prices also fluctuate greatly depending on the market trends.
Finally, adjustable rate mortgage loans are also on the table for some of the best home loan rates and first time buyer loans. These loans are easy to qualify for and carry lowered initial interest rates. If you are lucky, interest rates may remain low or drop further making this loan more affordable than the fixed rate mortgage loans.
About The Author:
Brandon Laam is an experienced content writer and publisher on the topic related to loan, first time buyer home loans , home equity loan rates, best home loan rates and many more topic related to present era.
