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  • Writer's pictureEmjae Esta

Information about different types of funding

When it comes to purchasing a home there are many different options, here at Pride Homes Team we want our clients to be informed so we will give you the inside scoop on different types of funding for home purchase.

Let’s get started with some loans available for First-Time Home Buyers, conventional loans which can go as low as 3% depending on credit but average at around 10% and can go up to around 20% down. If that option isn’t the best for you don’t worry, there are plenty more.

Next, we explore FHA loans which is a (Federal Housing Administration) which require around 3.5% down depending on credit score. With an FHA you’ll need to get mortgage insurance which is an insurance policy certain homeowners must obtain in order to protect the lender in the event that the buyer defaults on payments.

The next type of loan, VA loan, is available only for those in the currently in the military, a veteran, or a surviving spouse. These loans require 0 down and no mortgage insurance, a certain credit score is required. If you’re curious about this loan and if you are eligible for one, please contact a lender for more information.

A less known type of loan is the USDA loan, this loan is given to those with low to moderate incomes looking for homes in more rural areas. Credit score requirements for this type of loan vary, but they also require 0 down payment. This loan also requires mortgage insurance, but generally has a lower rate than FHA.

There are always new programs that come out to assist home buyers with down payment assistance, closing costs and other things when it comes to purchasing a home. We work with great trusted lenders so if you’re needing information on how to get started please contact us. Even if you don’t know where to start we can assist you and provide you with a list of our preferred lenders.

New programs are always coming available to assist home buyers with a down payment, closing costs, and other items when purchasing a new home. We work with great, trusted lenders who make it their business to keep up with the latest of these programs that offer the greatest advantage to the home buyer. Ask us for our list of trusted lenders to help you get started.

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