The Different Loan Programs to Buy A Home in Northeast Florida

In today’s blog I’m going to talk about the different loan programs available, so sit back and enjoy!

I don’t want to get into a lot of detail talking about the different types of loans, because we frankly, it can be a little boring. So I’m gonna keep it short and sweet.

There’s fix rates and there’s adjustable rates. As both names imply, fixed rates never change for the life of the loan, but Adjustable rates can fluctuate.

FHA vs Conventional

There are conventional loans which are not backed or insured by government agencies, where is FHA loans are insured by the government. FHA has a little less stringent qualifications for the buyer, while conventional is a little more strict. However the requirements for the property are a little more lax than FHA. For example let’s say the house has a pool and it’s very green, FHA may require that it’s cleaned. Conventional not so much. FHA is 3 1/2% down, while conventional can be 3, 5, 10, or 20%. down.

VA

Is for active or retired military folks. A certificate of eligibility is required before obtaining a VA home loan. It’s 100% financing and competitive rates. Similar to FHA, the properties have to at higher standard than conventional.

USDA

A USDA loan is 100% financing loan for rural areas. I know what you’re thinking, USDA are the steak people right? I thought the same when I first heard of this program too, but they do loans as well, but only In rural areas.

There are a couple other banks or credit unions that offer 100% financing as well.

If you’re wondering the best place to start on your road to home ownership, that is usually with your own bank, but if you don’t have a lender you trust, I can recommend a couple good ones. Not all lenders do the programs I mentioned. Just give me a call or text at 904-910-3516.

You’re awesome for sticking with me this far. If you look below the video I have a few guides that go over the home buying and mortgage process. Speaking of video, below is a video I did on the subject, where you can also find my youtube channel.  Check out my post about the difference between being pre-qualified and pre-approved.

 

 

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