What is a Mortgage?
Unless you're purchasing your Home entirely with Cash, you're probably going to need a Mortgage!
A Mortgage is a Home Loan sponsored from a Lender, that allows you to pay for your home over a long period of time, typically 30 Years! Qualifications vary from Program to Program, but all take Credit-Worthiness, Debt-to-Income Ratio (DTI), and Interest Rates to determine if you qualify.
Below we've listed the most common, and even some uncommon types of Loan Programs you'll see when applying for a new Home Loan!
Traditional Home Loans
FHA
(Fannie Mae / Freddie Mac)
A Government Backed Loan that Features a 3.5% Down Payment, Low Credit Qualifications & Standard Rates, at the cost of Mortgage Insurance Premium.
Conventional
A Loan with a Down Payment range of 5% - 20%, stricter Credit Qualifications, and standard Interest Rates. A simple and classic program.
VA
A Loan for Military Veterans, with lots of support like Lower Rates, No Private Mortgage Insurance, and more Accessible Credit Qualifications.
Specialized Home Loans
DPA
(Down Payment Assistance)
Many DPA Loans exist but vary from Lender to Lender. Usually they cover the Down Payment in exchange for a secondary Loan that gets paid overtime along with the 1st Mortgage.
DSCR
(Bank Statement Loan)
If you have variable income streams, and don't want to go through the hassle of providing a portfolio of paystubs, checks, and invoices, DSCR allow you to qualify with Bank Statements!
Already Own a Property? Learn About Refinancing!
What is "Refinancing"?
A Fantastic Question! Refinancing is the process of using a portion of your accumulated equity on the Home to "renegotiate" your Mortgage! This can have lots of benefits, like reducing your Interest Rate, Lowering Monthly Payments, and even pulling out a Large Sum of Cash which can be used for Renovations, Debt Consolidation, or to rebuild your savings!
This does technically "restart" your loan, but if you're getting the benefits above, especially a lower payment, then it can be well worth it! Like Mortgages, there are several types of Refinance programs available, check out the slide below where we'll cover them!