There are a number of loans to choose from when you buy a home, so it's important to fully understand the advantages and disadvantages of each type before you make a decision. Depending on the type of mortgage you choose, you’ll have different requirements that influence your rate, loan terms and your approval. Selecting the right mortgage for your situation can lower your down payment and decrease the overall interest payment over the life of the loan.
For the Types of Mortgage loans (these can come in both Fixed or Adjustable Rates):
1. Conventional Mortgages - Conventional mortgages are the most common type of mortgage. That said, conventional loans do have stricter regulations on your credit score and your debt-to-income (DTI) ratio. You can buy a home with as little as 3% down on a conventional mortgage. You’ll also need a minimum credit score of at least 620 to qualify for a conventional loan.
2. Jumbo Mortgages - Jumbo loans are similar to Conventional loans except they cover loans amounts currently higher than $726,200* in most areas. You usually need a jumbo loan if you want to buy a high-value property. Jumbo loans typically come with tighter requirements for debt to income ratios, down payment and savings reserves. *Several counties across the nation have higher loan limits, please contact me to find your county limit.
3. FHA Mortgages - FHA loans are insured by the Federal Housing Administration. An FHA loan can allow you to buy a home with a credit score as low as 580 and a down payment of 3.5%.
4. VA Mortgages - VA loans are insured by the Department of Veterans Affairs. A VA loan can allow you to buy a home with $0 down and lower interest rates than most other types of loans. You must meet service requirements in the Armed Forces or National Guard to qualify for a VA loan.
5. USDA Mortgages - USDA loans are insured by the United States Department of Agriculture. USDA loans have lower mortgage insurance requirements than FHA loans and can allow you to buy a home with no money down. You must meet income requirements and buy a home in a suburban or rural area in order to qualify for a USDA loan.
6. Portfolio Mortgages - Portfolio loans are for very specific and special situations where First Western Trust Bank is choosing to keep the loan internal as it may not qualify for servicing to be sold. Examples could be: non-traditional income or assets; etc. Portfolio Loans are all adjustable rate loans.
For the Types of Mortgage loans (these can come in both Fixed or Adjustable Rates):
1. Conventional Mortgages - Conventional mortgages are the most common type of mortgage. That said, conventional loans do have stricter regulations on your credit score and your debt-to-income (DTI) ratio. You can buy a home with as little as 3% down on a conventional mortgage. You’ll also need a minimum credit score of at least 620 to qualify for a conventional loan.
2. Jumbo Mortgages - Jumbo loans are similar to Conventional loans except they cover loans amounts currently higher than $726,200* in most areas. You usually need a jumbo loan if you want to buy a high-value property. Jumbo loans typically come with tighter requirements for debt to income ratios, down payment and savings reserves. *Several counties across the nation have higher loan limits, please contact me to find your county limit.
3. FHA Mortgages - FHA loans are insured by the Federal Housing Administration. An FHA loan can allow you to buy a home with a credit score as low as 580 and a down payment of 3.5%.
4. VA Mortgages - VA loans are insured by the Department of Veterans Affairs. A VA loan can allow you to buy a home with $0 down and lower interest rates than most other types of loans. You must meet service requirements in the Armed Forces or National Guard to qualify for a VA loan.
5. USDA Mortgages - USDA loans are insured by the United States Department of Agriculture. USDA loans have lower mortgage insurance requirements than FHA loans and can allow you to buy a home with no money down. You must meet income requirements and buy a home in a suburban or rural area in order to qualify for a USDA loan.
6. Portfolio Mortgages - Portfolio loans are for very specific and special situations where First Western Trust Bank is choosing to keep the loan internal as it may not qualify for servicing to be sold. Examples could be: non-traditional income or assets; etc. Portfolio Loans are all adjustable rate loans.
