Conventional Home Purchase Loans and More

Purchase Loan Choices

Conventional Loans

Conventional home loans are popular home mortgage options across the U.S. Private lenders, not the government, back these loans, so you can expect greater flexibility with regard to property types, loan amounts, and credit score restrictions. Loan terms also vary (10-30 years), so you can choose the one that best meets your needs.

The drawback of conventional home loans? Your credit score will likely need to be larger than what’s required for a government-backed loan. You must also make a down payment of at least 3-5% and pay private mortgage insurance (PMI) premiums if you submit a down payment that is under 20% of your home’s purchase price.

FHA Loans

An FHA loan is a government-backed loan that the FHA insures. It can help borrowers with moderate to low incomes who can’t take advantage of conventional home mortgage options due to being unable to meet conventional loans’ down payment and credit score requirements.

One reason to choose an FHA loan is that it can help you buy a home even if you haven’t saved up a large sum of money, as your down payment can be just 3.5% of your home’s purchase price. You’ll also find it easier to be eligible for FHA loans than conventional home loans. A foreclosure, bankruptcy, or lower credit score doesn’t have to keep you from accomplishing your home ownership dream when you go the FHA route.

FHA loans have some disadvantages compared with conventional home loans, though. You’ll have to pay PMI premiums since your down payment will be under 20% of your home’s price. An FHA loan also isn’t a viable home mortgage option for purchasing an expensive home since it comes with purchase-price limits.

VA Loans

A veteran, military personnel, or the surviving spouses of service members can take advantage of a VA loan, which the Department of VA guarantees to guard lenders against loss if borrowers default. The goal of these loans is to help families in the military more easily qualify for homes.

Borrowers interested in VA loans don’t have to make down payments, making conventional home loans an excellent choice for borrowers short on funds. The interest rates associated with VA loans are also usually lower than those for conventional loans, and no PMI is required. The lack of PMI could save you hundreds per month. All in all, these home mortgage options are a wise choice for families looking for an affordable way to experience homeownership.

USDA Loans

Are you considering buying a property in a rural or suburban area? Consider one of these government-backed home mortgage options available through the USDA. A USDA loan is ideal for people who generate low or moderate incomes and struggle to secure conventional loans. The loan requires no money down, so you can finance your entire property’s cost. The interest rate is also lower than those associated with conventional or FHA loans. Loan funds can additionally be utilized to cover the cost of repairs or improvements for your home.

Jumbo Loans

A jumbo loan is ideal for borrowers seeking to borrow a large amount of money. You’ll need a higher credit score, larger down payment, and lower ratio of debt to household income to qualify for this loan compared with conventional home loans. You may also pay a higher rate of interest compared with a conventional loan.

Loans for First-Time Buyers

Are you a first-time house buyer who needs help with a down payment? Many home mortgage options are available for anyone buying their first house in Wyoming, Utah, or Idaho. These options include city and county grants. As long as you meet income requirements and haven’t owned a property during the past three years, you may be eligible for this funding.

 

Partner With Summit Lending Today

As a mortgage broker firm led by mortgage specialists with over 50 years of combined experience in the industry, Summit Lending is ready to help you with conventional home loans and many other mortgage options in Idaho, Wyoming, or Utah. Whether for refinancing, purchasing, building, or tapping into home equity, our home mortgage loan specialists can find the perfect solution for your financial needs. Get expert guidance today!