The Conventional Home Loan is often times the first thing that Nashville homeowners think of for their home purchase. They require a 5% down payment for a loan with PMI, and 20% for one without PMI. (PMI is Private Mortgage Insurance.) However, this is just one way to go about getting a mortgage. There are several different mortgage products that many people don’t even know exist that can let people move in without putting down such a large down payment.
If you will qualify for a USDA (United States Department of Agriculture) Loan, or a VA(Veterans Affairs) Loan, there is no down payment required. A USDA Loan is used for homes being purchased in rural areas, and have income requirements. VA Loans help veterans and their spouses with long term financial assistance as needed.
The FHA Loan was in the news earlier this month. The Obama Administration has announced that FHA Loans would cut their PMI from 1.35% to .85%, which is a reduction to pre-2011 levels. What does this mean? Well, it means lower payments! You can put down 3.5% on an FHA Loan, and with the reduction in PMI, it can lower your payments by hundreds of dollars. Using an FHA Loan instead of a conventional can be a great way for you to get into the home that you want ASAP.
We recommend that people call us before they start looking for their home. The reason? We’re The Home Loan Expert team. Let us find the interest rate and mortgage that you can afford, and you can shop for your home with that advantage. That way, when you find your home, you can put an offer on it right away, and not have to wait for financing. That can be the difference between getting your dream home and missing out to another bid.
Whether you currently have a home or are looking to move, call us first so we can let you know how low we can make your payments. Nobody makes it easier to get their home mortgage loan in Nashville than The Home Loan Expert. Call us today at 615-810-8555 or visit our Nashville website to apply online!