What are the different types of mortgages?

In North Carolina, there are several types of mortgages available to home buyers. These include conventional, FHA, VA, and USDA loans. Conventional loans are the most common type of mortgage, and they are provided by private lenders. These loans require a good credit score and a down payment of at least 5%. They often come with a larger interest rate than other types of loans. FHA loans are insured by the Federal Housing Administration and available to buyers with less than perfect credit scores. These loans require a smaller down payment, usually around 3.5%. The interest rate on FHA loans is usually slightly higher than with conventional loans and may have additional fees associated with them. VA loans are offered by the Department of Veterans Affairs and are available to veterans, active-duty service members, and eligible surviving spouses. VA loans require no down payment and often have the lowest interest rate of any type of loan. USDA loans are provided by the U.S. Department of Agriculture and are available to those living in rural areas. USDA loans require no down payment and also have a lower interest rate than other types of loans. Overall, the type of mortgage you choose really depends on your specific financial situation and needs. It is important to research the different types of loans and speak to a professional before making a final decision.

Related FAQs

What documents should I review before buying a home?
What is a disclosure statement for a landlord-tenant agreement?
What is dual agency in a real estate transaction?
What is a lease purchase agreement?
What can I do if I'm the victim of predatory lending?
How do I protect myself if I discover a defect in a home I am buying?
What is a condominium’s bylaws and how can I obtain a copy?
What is a homeowners association?
What options do I have if I'm facing foreclosure?
What is a landlord’s lien?

What are the different types of mortgages?

Related FAQs

Related Blog Posts