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What are the different types of mortgage loans?

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How do I know what’s right for me?

The list may be long, but understanding your loan options is an important part of making the best decision for your personal situation. American Mortgage is a leader in the mortgage industry, and hundreds of Jagoe Homebuyers have said they would recommend American Mortgage in the future.

Here is a quick rundown of the different types of loans, their key benefits, and how to determine which loan may be best for your personal circumstances.

Quick rundown of mortgage loan options

Mortgage Type Key Benefits
Worth Considering if You…
Conventional Fixed-RateThe lowest fixed interest for eligible buyers Best fixed ratesNo interest-rate surprises Plan to stay in your home for a long period of time.Have an established credit history Can put at least 5% down on a home
Adjustable-Rate (ARM)The lowest rate for first 3-10 years of loan for eligible buyers Lowest short-term ratesInitial lower monthly payments

Initial rate period of 3-10 years, then rates
can adjust up or down

Know you’ll be moving within the next few yearsHave an established credit history

Can put at least 5% down on home

Jumbo The lowest rates for higher-priced properties Increased purchase limitsCompetitive rates

Fixed-rate ARM options

Buying a home that exceeds conforming loan limits ($417,000 in most areas)Have an established credit history

Can put at least 20% down on a home

FHAGovernment-backed loans with flexible guidelines Low down paymentsFlexible qualification guidelines

Fixed-rate and ARM options

Limited funds for down paymentNo established credit history
or past credit challenges
VA Government-backed loans for military members Low or no down paymentNo mortgage insurance requirement

Flexible qualification guidelines

Fixed-rate ARM options

Active military or veteranSurviving spouse of service member who died as a result of military service
Construction Loans Convenient financing for new
constructionConstruction-to-permanent
loan options
Building a new home to your specificationsBuying a lot for a future home
Investment Property LoansFinancing for properties that generate income Financing for residential rental property with 1-4 unitsVariety of loan options Want to become a landlord

 

More about FHA, VA and USDA loans

Loans granted by the FHA (Federal Housing Authority), VA (Veterans Administration) and USDA (United States Department of Agriculture) are designed to meet special circumstances or provide specific benefits. Click below to learn more.

 

Learn More

 

Jagoe Homes Mortgage Lenders

Our Home Mortgage Lenders can meet almost every mortgage need, and they are ready to go to work for you. Meet our lenders here.

 

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