A “purchase loan” is a type of mortgage that is used to purchase a home. There are several different types of purchase loans available, each with its own unique features and benefits.
Conventional loans are a popular option for many homebuyers. They are not insured or guaranteed by the government, which means that they may require a higher credit score and a larger down payment than a government backed loan. However, they often offer lower interest rates and more flexible terms. These loans are often underwritten with Fannie Mae or Freddie Mac guidelines, but can also be private money or portfolio type loans that a bank or mortgage institution funds but does not sell on the open market.
FHA loans are backed by the Federal Housing Administration and are designed to help first-time homebuyers and low-to-moderate-income borrowers. You do not have to be a first-time homebuyer to use these loans. They require a lower down payment and have more lenient credit score requirements. FHA loans require mortgage insurance.
VA loans are available to active-duty service members, veterans, and eligible surviving spouses. They offer up to 100% financing and have some of the most lenient credit score and income requirements. VA loans do not have mortgage insurance requirements, but may have a VA Funding Fee requirement.
USDA loans are backed by the U.S. Department of Agriculture and are designed to help borrowers in rural areas purchase homes. They offer up to 100% financing and have more lenient credit score and income requirements.
At Amerifund, we have experience working with all these types of loans and more. Our team of mortgage loan originators will work closely with you to understand your unique financial situation and help guide you in choosing the best loan option for your needs.
We also understand that purchasing a home can be a daunting and overwhelming process, that’s why we are committed to providing you with the support and guidance you need every step of the way. From pre-approval through closing, we will be there to answer your questions and ensure that the process is as smooth and stress-free as possible.
If you’re ready to take the first step toward purchasing a new home, please fill out the form below or contact us directly to schedule a personal consultation with one of our experienced mortgage originators. We look forward to helping you achieve your homeownership goals.