Many buyers find they will need to finance or obtain a mortgage for the purchase of their home. A mortgage is a long-term loan to make buying a home affordable. There are different types of mortgages and your Realtor (Buyer’s Agent) can advise you of Mortgage Lenders in the area who can guide you into the loan that best fits your personal scenario.
Types of Mortgages
- Conventional – can be a down payment of 3% to 20% or more of the purchase price of the home.
- FHA – is a government insured loan and is optimal for Buyers with a minimum down payment (3 ½%).
- VA – is a specific loan program for Veterans and allows veteran buyers to purchase with no down payment.
- Rural Development – is a government insured loan allowing for a small down payment and used primarily in rural areas, not within the city limits.
Buyers may receive assistance with their down payment from family members gifting funds, and your mortgage lender can guide you through that process.