types of loans and Tax Credits
With the right help everything falls into place
Applying for the wrong loan with the wrong bank can cost you the home of your dreams. The best first step is to know all that is available and understand your options
FHA loans
This loan type is backed by the Federal Housing Administration and requires a minimum of 3.5% down payment. Other benefits of this loan type are that it allows the seller of the home to pay up to 6% of the purchase price towards your closing cost. In some cases, this can cover all your closing cost. You are also permitted to have more debt with this loan than with other mortgage types.
VA Loans
If you have served in the military, you may qualify for this loan. You are not required to make any down payment which make it a great way to finance a home with little out of pocket. Sellers are permitted to pay up to 4% of the purchase price towards your closing cost.
Conventional loans
This type of loan can require as little as 3% down and under the right circumstances can be a cheaper option long term. If you are planning to make a large down payment or use the proceeds of the sales of a previous home this loan may reward you with not having to pay any mortgage insurance or being able to cancel it after have had your mortgage for five years and having 20% equity.
Tax Credits
If you have not owned a home in the past 3 years or have not taken a tax benefit from owning a home, you may qualify for a tax credit on the purchase of your new home. This credit can be between 20% and 45% of the interest that you pay yearly on your home for as long as you own it. There are other restrictions that apply but we are experts at guiding you in selecting the tax credit that is right for you.
