What are the Different Types of Specialty Mortgages?
Many Americans assume they aren’t qualified to buy a home. So instead of doing any research, they resign
themselves to a future of renting. We get it: real estate— and home buying in general—is daunting. But there are a variety of specialty mortgage types available to certain buyers. Even if you’re on a tight budget and think there’s no way you can own a home, it doesn’t hurt to check out the possibilities.
Veterans. VA loans are designed to help service members, veterans, and surviving spouses achieve the dream of homeownership. If you’ve served your country in the Army, Navy, or Air Force, and you want a place to call your own, VA loans can help. If you already own a property, you can use a VA loan to add on, repair, or adapt it. To learn more, visit the U.S. Department of Veteran Affairs website.
USDA. Are you someone who hates big city life? Do you love being surrounded by nature and rolling pastures? If you answered “yes” to either of these questions, a USDA home loan might be for you. USDA loans are issued through the USDA Rural Development Guaranteed Housing Loan Program, by the U.S. Department of Agriculture, with a focus on improving “the economy and quality of life in rural America.” Learn more about the program here.
FHA. Is your credit score less than stellar? If so, you aren’t alone. A 2019 survey conducted by NationalMoney.net found that more than 688 million Americans have bad credit. Just because you’ve had financial difficulties in the past doesn’t mean you can’t buy a home. That’s where FHA loans come in. Backed by the Federal Housing Administration, FHA loans are for low-to-moderate income borrowers with penalized credit scores. Some of their benefits include lower down payments and reasonable interest rates.
203(k). Last but not least, is the 203(k). If you’ve fallen in love with a fixer-upper, a 203(k) loan gives you the opportunity to invest in home improvements and renovations. Any property that’s over a year old and requires more than $5,000 in renovations is likely eligible. To access a comprehensive list of requirements, click here.
As you can see, opportunities for home ownership abound. If you truly want to own a home, there’s a path to get you there. Visit our website to learn more. 1st Rate Mortgage