When people think of a home loan, they’re often thinking of the Conventional Home Loan. They are very popular, but 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.
For example, if you 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 reserved for homes being purchased in rural areas, and those also come with income requirements. VA Loans are designed to help veterans and their spouses with long term financial assistance as needed. You can read more about these loans on our site.
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 always ask for people to call us before they start shopping. Why? We’re The Home Loan Expert team. We will find the interest rate and loan that you can afford, and let you shop for your home with that knowledge. 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 Indianapolis than The Home Loan Expert.
Call us today at (317) 550-1515 and visit www.thehomeloanexpert.com/newlook/indianapolis to apply online!