Type Of Loans Homebuyers Can Consider

November 4, 2020 devsite

Families and individuals are buying homes with a budget in mind. Most of the time loans are used to help with the cost of the house, but how do you know which loan to choose from? American Family Funding can help you with the right loan and provide guidance.

There are five different type of loans that American Family Funding provides:

Conventional loans
FHA loans
Jumbo loans
USDA loans
VA/CalVet loans

American Family Funding wants to make sure that you have the right knowledge to understand the loan of your choosing.

Conventional Loan

When buying a home, refinancing a mortgage, or worried about credit ratings this loan is recommended. It includes low closing costs and payment plans that fit your needs. This is a loan that is not guaranteed or insured by the federal government. Conventional loans are a mortgage loan following guidelines of the government.

FHA Loan

The Federal Housing Administration tries to make it easier for first-time homebuyers to receive a loan. Debt to income ratios is required to qualify for this loan and decent credit.

Jumbo Loan

This loan is provided to help those who have high-income to buy luxury homes and small homes that live in nice areas when the price raises. Jumbo loans come in handy when homes prices raise. This is a non-conventional loan and unfortunately major agencies cannot buy or trade due to costing values. Additional research may be needed because jumbo loans vary from state to state.

USDA Loan

This has a fixed interest rate and allows the individual to buy a home with no money down. You will have to qualify for this loan in order to not put any money down. It is determined by credit worthiness, USDA loan income restrictions, and where you live.

VA/CalVet Loan

This allows veterans purchase properties with no down payment. The VA loan is created to help eligible veterans with long-term financing. Department of Veterans Affairs determines where veterans will live such as small cities, commuting areas, and rural areas.

Instead of going to Fannie Mae or conforming loans, VA loans allows the veteran to qualify for a larger loan.

If you have more questions about the loans they offer visit there website www.affloans.com. You can also call them at 661-284-1150.

Santa Clarita mortgages lender American Family Funding can help you fulfill your dream of home ownership. A highly rated Santa Clarita mortgages lender, American Family Funding maintains a focus on community involvement and a commitment to giving back whenever possible. A friendly mortgage advisor will make the first time homebuyer experience an easy and stress-free experience — even with bad credit or a low down payment. The Santa Clarita home loan officers at American Family Funding also specialize in VA loans, reverse mortgages, refinancing and the STAR Loan Program.