mortgage rate you can. The interest rate you are eligible for depends first and foremost on what the average going rate is in the area you are looking to buy into. But the average rate Is not the only factor that figures into the interest rate for which you qualify. As everyone knows, your credit score makes a difference and the higher your score the better rate you can get. Other factors include your income, the amount of a down payment you can put down and whether you qualify for any special programs.
If you are looking for a Mechanicsburg, PA home loan you can go with a mortgage lender or a mortgage broker. A mortgage lender directly loans you the money for the mortgage while a mortgage broker shops around with various lenders until they find the lender that will offer you the best deal. It is important that you understand this distinction because not all mortgage lenders will handle all loan programs, even VA loans. A-Plus Mortgage Solutions, for example, deals with all of the programs available because they are a mortgage broker.
If you were in the military you may qualify for a VA loan. VA loans typically offer better interest rates and also have different rules regarding the amount of a down payment that you must put down. A VA loan may also require no down payment and may not require mortgage insurance.
FHA loans are loans that are backed by the Federal Housing Authority. These loans are designed for low to moderate-income earners who may otherwise be locked out of the housing market. With an FHA loan, you have a lower down payment requirement of only 3.5% of the purchase price and you can have a lower credit score and still qualify. In addition, the seller is allowed to help the buyer with the closing costs, which can substantially decrease out-of-pocket costs.
USDA loans are similar to FHA loans, but are restricted by location. Though typically they are used to purchase properties in rural areas, suburban locations around cities with populations of 35,000 or less may also be eligible. Like FHA loans, down payments, credit scores and your income are different and less stringent than conventional mortgages.
USDA and FHA
Both the USDA loan program and the FHA loan program have various options available to home buyers that are not available with conventional mortgages. For example, with a USDA loan, if the appraised value of the home is higher than the purchase price you can finance the closing costs up to 102% of the home’s appraised value. The FHA seller assistance is a good deal because this isn’t allowed with conventional loans.
If you are interested or think you qualify for any of these programs, contact A-Plus Mortgage Solutions mortgage brokers. A-Plus Mortgage Solutions has a 4.98-star rating on Zillow and over 100 reviews.