You are probably familiar with some of the more commonly used types of home mortgage loans like a conventional fixed-rate home loan, FHA home loans secured through the American government, and the VA loan that is specifically designed for our women and men that have served in the armed forces.
These are often the go-to loan programs many homeowners use to buy their homes. But some homeowners need a different plan and will look outside these common types of home loans for some alternatives to finance their new house. These certainly aren’t the kinds of loans everyone will gravitate towards when looking for a new home, but it’s good to know a few of the options when you are ready.
3 Lesser Known Types of Home Mortgage Loans
Let’s take a look at some of those less common types of home loans.
The first one you might have actually heard of and was popular a number of years ago is the adjustable-rate mortgage. This can be a powerful tool in your home buying process. The adjustable-rate mortgage allows for a fixed rate on your interest for a period of time at the beginning of your loan, and then your mortgage will continue to adjust throughout the remaining time on the loan. While that might sound unthinkable for many home buyers, if you plan on paying off your loan at the end of the fixed-rate timeline, this could be the perfect option for you. Also, this type of home loan can bring you a lower interest rate in the beginning than some of the more traditional types of home loans can.
Non-conforming jumbo home mortgage loans are another option for home buyers who don’t quite fit into the more common types of home loan conditions. This type of mortgage loan is available when your home purchase is larger than about $510,000. Most fixed-rate loans will top out at that number. But if you are looking for a home above this and you have significant income to qualify for a jumbo home mortgage, this could be the perfect option for you. It can be riskier and will require a larger down payment in the beginning than a conventional loan, so it’s important to review this option thoroughly with your loan specialist.
Lastly, a good option for some home buyers looking for a home mortgage that offers different options than the conventional fixed-rate home loan is the USDA home mortgage or the United States Department of Agriculture home loan. This is another option for homeowners who might not qualify for FHA loans or fixed-rate home loans, but can still get into a home. This type of loan is one of the last loan options available without a down payment, and also offers lower interest rates. The USDA loan comes with lower fees and doesn’t require mortgage insurance on the loan. There are some credit score, income, and location requirements that also come with this loan, though it is becoming a more popular product in America for homebuyers to purchase a house. Check with your mortgage agent to see if you qualify.
Great Options to Buy Your Home
You might have only thought about the 3 main home loan types we spoke about at the beginning of this article, but you can see there are many home loan options out there when you are looking at buying your house. It’s important to review these with your loan officer and real estate agent when you are starting your home buying process. These experts can accurately guide you through your options so you can make the right decisions and give you some information on loan choices out there.
Work with a Qualified Real Estate Agent
When you are ready to sell your current home and buy a new one, look to a top-rated and experienced real estate agent. An agent that is familiar with the locations and types of properties you love in the Memphis area. Whether it’s residential or open land you’re looking for, work with a qualified real estate professional that you can trust to guide you through the home buying process.
Click here to learn more about me and how I can help you with your new home purchase, buying parcels of land, or selling your current home quickly. My skills and education are focused on what you need for a great real estate experience. I would love to chat with you and answer any questions you might have. I can also connect you with some great home loan experts that will get you started with just the right home loan. Contact me at (901) 828-8919 or drop me a quick note firstname.lastname@example.org. Looking forward to speaking with you today!
Angie Kelley, Crye-Leike Realtors
(901) 828-8919 or (901) 756-8900