Loan Options for Home Buyers
The process of buying a home can be daunting. There are many things to think about, but your loan options shouldn’t provide stress. Let’s talk about the different loans we recommend, especially if you’re a first-time homebuyer.
FHA (Federal Housing Association)
This is a great loan option for first-time homebuyers with little to no credit and a small down payment. With this option, you can be approved for a mortgage loan with a credit score as low as 580 with only a 3.5% down payment.
Similarly to the FHA loan, with the USDA loan, buyers will be able to get approval for a mortgage loan with a lower credit score (minimum 640) and a small down payment. This loan will be most effective if you are purchasing a home in a USDA qualified rural area.
This loan is specifically for veterans, active-duty military members and their spouses who qualify. With this loan, the lender will not have a required down payment and it does not require a credit check.
Fannie Mae/Freddie Mac
If you make income as an educator, firefighter, police officer, or other medical technician, then this loan option might be right for you. This option allows for discounted homes and can pair with an FHA loan. Something important to note: you must stay at the property for at least 36 months but can sell after the 36 months have passed.
Want to Learn More?
Have any further questions regarding loans? The Shaffer team is here to help! Our team consists of real estate professionals in Southern Utah, specializing in selling homes. Call us today to get started at (435) 703-8885.