Types of Mortgages

When a person is looking to purchase a home there are different types of mortgages they can get. There are real estate options for home buyers that will help them get a home loan.

Traditional Mortgage

This is a home loan that is given by a mortgage lender. These mortgages have specific limits that they need to follow. A person will often need to have private mortgage insurance and they may be able to put less than 20 percent down.

Jumbo Mortgage

This mortgage does not have limits and a person can get it to qualify for a very expensive home. They can take out a large sum. This will usually be required for homes in an area that costs more to live in.

Government Insured Mortgage

While the government is not going to be the lender they often back the programs. There are programs for first time home buyers, people looking to purchase homes in rural areas, and loans for veterans. This will make it possible to own a home for people that may not have perfect credit and may not have a lot of money saved up for a down payment. Some loans have income qualifications and there are certain limits when it comes to purchasing a home. For those that do not have a huge amount of money saved and may have less than perfect credit, these are some options for homeownership. The property will also need to meet some basic qualifications. The VA loans are open to an active or retired members of the military and their families. They may not have to put a down payment on the home or pay closing costs.

These are some mortgage programs out there for people that are looking to purchase a home. They can speak to their real estate agent about what programs they may qualify for and which program will best fit their situation.