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Mortgage Loan Options for Your Dream Home - VA Home Loans

The iServe Blog


What mortgage loan type is right for you? Looking at all the different options can get overwhelming in a hurry, but this home loan hack can help. Discovering the loan type that is most common in the area you want to live can give you a good idea of what will work best for you. Think about your dream home — is it a convenient high-rise downtown, a house bursting with kids in a suburban neighborhood or a sweet cottage in the country? Here are the most popular loan types for each of these living spaces: Use this information as a starting point on your home buying quest.

Most Common Home Loan Types for Your Area

Urban

Do you love the big city life, the easy transportation and the ability to get just about anything you want, any hour of the day? For city dwellers, an FHA loan is often a good bet and is the most commonly used loan type in urban areas. If you are used to paying rent, the possibility of lowering your monthly cost (and potential year-end tax savings – check with your own tax advisor about that) of a mortgage may be a pleasant surprise. With low down payment options, flexible credit standards and generous limits, the FHA loan could help you snag your dream home in your favorite downtown area.

Suburban

If you enjoy the suburban life — the sound of kids at play, a sense of community and even a spot for a pool or garden — then a conventional or conforming residential mortgage loan might be your best bet. The most commonly used loan in the suburbs is a conventional one, with a typical 20 percent down and a 15- or 30-year term. Whether you are shopping for the perfect school district or just want the American dream, a conforming loan could help you land your dream home in your favorite suburban community.

Rural

Are you dreaming of a big garden, a flock of chickens or maybe even a horse or two? House your growing family and flock in a rural home with some property using a USDA loan backed by the U.S. Department of Agriculture. This mortgage loan is designed for rural areas and features low down payments, low closing costs and forgiving credit guidelines. Whether you want just an acre or so to grow a kitchen garden and have room for a few interesting pets or you want several acres with privacy and a view, a USDA loan can help make it happen.

While this loan is most popular in areas that are suitable for farming, it can actually be used in over 90 percent of the areas in the USA and is gaining in popularity in suburbs that surround rural areas as well.

VA Home Loans Go Anywhere

If you are active military or a veteran, then a VA mortgage loan could be your best option, whether you live in the city, a small town or the country. If your chosen home meets the guidelines and you qualify, you are all set. This flexible product is designed specifically for armed services members and features low or no down payment, flexible credit guidelines and an easier approval process.

While these are the most popular loan types in each type of area, one may suit your needs better than the others, no matter where you want to live. To find out what loan type is best for you, speak to one of our loan officers about your plans and options. We’ll be able to walk you through the process and help you choose the loan type that is right for you, no matter where your dream home is located. It’s fast and easy to find out by calling us today or getting started online.