As soon as I realized that my personal financial picture was a little bleak, I started thinking about taking out a personal loan. I wasn't really looking forward to going into debt, but I knew that if I wanted to solve a few short-term problems, a loan would be the way to go. I talked with a few of my local financial institutions to get a good idea of what they could offer me, and then I sat down to go over the paperwork. It was incredible to see how much money I could save by securing a lower interest rate. Check out my blog for more information about loans.
Did you know that government entities insure some mortgages? Now, this is not true for all mortgage loans, but it is true for three common types. If you choose one of the following types, your mortgage will have insurance from a government organization. Here are the three types of government-insured loans and information about each type.
FHA Mortgage Loan
The entity that provides insurance for FHA loans is the Federal Housing Administration. FHA loans are ideal for first-time homebuyers, but you can use these even if you have already owned a house. In other words, you do not have to use it for your first home purchase. One benefit of an FHA loan is that you need only 3.5% down on your purchase. You also do not need perfect credit to qualify. The downside of FHA loans is that you must pay a fee to the FHA each month for as long as you have the loan. The fee is added to your mortgage payment when your lender provides you with a loan.
USDA Loan
When you get a USDA loan, it is the U.S. Department of Agriculture that provides the insurance to your lender. This loan program helps people purchase homes in rural communities. To use a USDA loan, you must select a house that is approved for this loan program. One benefit of USDA loans is that you might not need a down payment for your purchase. Many lenders offer them with 0% down. You also do not need perfect credit to apply. You can ask your mortgage lender about the fees required with USDA loans.
VA Mortgage
The Department of Veterans Affairs offers insurance on VA mortgage loans. When getting a VA mortgage, you also can reap some benefits, but you cannot get one unless you meet the military requirements for these loans. You must have military experience and evidence to prove it. You won't need a down payment to apply for this kind of loan. You will pay a one-time funding fee to get the loan, but you will not have to pay any private mortgage insurance for it. This loan type is ideal for military families or anyone with military experience.
When you work with a full-service mortgage lender, they can help you find the best mortgage loan to use. If you have questions about getting a loan, contact the mortgage lender of your choice today.
Share11 February 2021
