There are many different types of mortgages available on the market today. It can be confusing to know which one is right for you. In this blog post from the Rob Ellerman Team in Kansas City, we will discuss four of the most popular types of mortgages and what each one entails. Read on to learn more, and if you’re ready to start looking at homes for sale in Kansas City, contact the Rob Ellerman Team today!
Conventional Mortgages
A conventional mortgage is a loan that is not backed by the government. These loans are available through private lenders and banks. Conventional mortgages typically have fixed interest rates and terms.
FHA Mortgages
FHA mortgages are loans that are insured by the Federal Housing Administration. These loans are available to borrowers with low credit scores and down payments as low as three percent. These loans are ideal for people who cannot afford the traditional 20 percent down payment.
VA Mortgages
VA mortgages are loans that are guaranteed by the Department of Veterans Affairs. These loans are available to active-duty military members, veterans, and their spouses. VA mortgages typically have lower interest rates than other types of mortgages.
USDA Mortgages
USDA mortgages are loans that are guaranteed by the United States Department of Agriculture. These loans are available to borrowers in rural areas with low to medium incomes. Some of the potential benefits of a USDA mortgage include lower interest rates, low or no down payments, and a lower monthly payment.
Start Your Home Search Today!
Are you interested in purchasing a home in Kansas City? The Rob Ellerman Team can help you find the home of your dreams. Contact us to learn more about the different types of mortgages, how to get your mortgage preapproval, and start looking at homes today!
