What Are the Different Types of Loans?

5 Minute Read

If you’re one of the many people looking to purchase or refinance a home this year, it’s important to know your loan options and understand what’s best for your situation. Avoid getting trapped into a bad loan by working with an expert who will help you save time and money. Here’s some of Churchill Mortgage’s most popular home loan options:

Conventional:

 This is the most common loan option and meets the needs of most people. Due to lack of government backing for these, they do require better credit to qualify, but the cost is considerably lower than most comparable government-backed loans.

FHA:

If you don’t qualify for a conventional loan, take a deeper look at this option. These loans are backed by the government and have a lower down payment requirement, credit score threshold, and income qualification. It might fit what you need!

VA:

Do you or have you served in the U.S. military? If so, you’ll want to look at this option because it’s a great loan product that’s an earned benefit offered to all active duty and retired military personnel. It has highly competitive pricing, no mortgage insurance requirement, the option to wrap the down payment into the loan principal, and further benefits extended to disabled vets.

USDA:

This loan is designed for rural borrowers, making it ideal for those who may not be able to get conventional financing. It’s managed by the Rural Housing Service and offers flexible credit criteria.

Non-traditional:

Several types of loans fit into this category, including: Jumbo, Zero Score, Interest Only, Adjustable Rate, etc. If conventional methods of homeownership are not an alternative for you, then a non-traditional loan might be an option. These loans offer versatile methods of financing for select borrowers.

Quick tip: Many states have local mortgage programs that may fit your needs as well. Talk to a Home Loan Specialist in your area to see if there are other options in your area.

If you’re looking to purchase a new home, remember to become a Churchill Certified Home Buyer. As a Certified Home Buyer, you’ll be positioned almost as if you’re a cash buyer, giving you an advantage when the competition is high. Not only does this help you shop for your new home with more confidence, but we’re finding that offers from Certified Home Buyers are getting accepted more quickly than other buyers. Unfortunately, a standard pre-approval provides a false sense of security and just isn’t good enough anymore.

Or if you’re looking to refinance your home, don’t forget to get your Churchill Checkup. A quick 10-minute call with one of our expert Home Loan Specialists can help you figure out what's best for you, and identify incredible opportunities to save time and money!

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