Different Loan Types To Purchase Homes
It is an exciting time searching for your dream home. A home purchase is one of the most expensive investments for the future you can make, and there are at least ten different ways available to purchase your home. Home Purchase Loan is the most popular way to buy your home any lender you decide to go with offers up to 85 percent of the market value of the house. Home Purchase Loans are available as a fixed rate of interest, a floating rate of interest, or as a hybrid loan. Home Construction Loans are a bit different than traditional loans. These loans are available when you desire to construct your new home according to your specifications. To build a new home, you have to purchase the land to build your home.
Another type of loan can be called a home purchase loan. However, this loan is available to a homeowner who already has a home but desire to build onto the house. Some homeowners make complete and total alterations to the home’s structure. These loans are ear-marked as home expansion loans.
This home purchase loan is known as a Home Conversion Loan and is available to you the homeowner for the sole purpose of buying another home and moving. A Home Conversion Loan does not require you the homeowner to pay off your current loan. The existing loan transfers to the new house. Some homeowners and financial institutions say that this can be an expensive option.
If you live or are moving to Idaho you may not have the funds for a down payment for a home loan purchases boise id. In these cases and if if you have a decent credit score but do not qualify for a traditional loan you may be able to obtain a loan provided by the sellers. At this time the seller purchases the home and you sign a trust deed or mortgage.
Conventional Purchase Money Loans are traditional loans. Most banks or mortgage brokers offer these loans. These loans follow strict guidelines as set by Freddie Mac or Fannie Mae. This type of loan requires excellent credit, and your downpayment depends on your credit score. Usually, zero down on excellent credit and five percent upwards on other less than perfect credit scores.
FHA Loans are common but not as much as the Conventional Purchase. FHA requires a minimum downpayment of less than four percent. To obtain an FHA loan, you must occupy the property.
VA Purchase Loan is also standard and available to veterans of the military. You can be active or non-active military. This loan, as a rule, requires zero down payment. But, you can put any amount you want as a downpayment. There are no fees with this loan, and the house must have a bug inspection and clear the inspection.