Kentucky Home Mortgage Loans
What Types of Home Mortgage Loans Are Available?
Conventional Loans – Ideal for Borrowers with Excellent Credit and a Substantial Down Payment
Conventional Home Mortgage Loans are more credit score driven than other loan types and at least a 620 FICO score is usually required to obtain an approval through conventional loans. Conventional Home Mortgage Loan guidelines are currently written in a way that a borrower with a 740+ credit score can usually obtain the best interest rate possible. As a borrowers credit score decreases below a 740, sizable fees and home loan interest rates increases could be added, in excess of the 1-2 percent range. If your credit score is less than perfect, an FHA Loan, USDA Loan or VA Loan could be a better fit for you.
FHA Loans – Ideal for Borrowers who have Less Than Perfect Credit and a Small Down Payment
FHA home mortgage loan requirements are not totally credit score driven, although a 620 FICO score is generally required to obtain an approval. FHA home purchase loan guidelines are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they’re generally going to be credit-eligible for an FHA home mortgage loan.
USDA Loans – Ideal for Borrowers who have Less Than Perfect Credit and a No Down Payment
USDA Mortgages have no down payment requirement. Other home mortgage loans don’t allow this. Another distinct advantage of a USDA mortgage, as compared to a conforming loan, is great interest rates and no mortgage insurance (MI). A 620 FICO score is usually required to obtain a USDA loan approval.
VA Loans – Ideal for Borrowers who are Veterans of the US Armed Services
VA Loans require no down payment and no mortgage insurance. A 620 FICO score is generally required to obtain a VA loan approval today.
Are There any Programs Out There for First Time Home Buyers?
First time home buyers sometimes feel they are facing a daunting, difficult task. Actually, both mortgage lenders and the U.S. government are willing to give you all the help you need to make your dream of home ownership a reality. Use the Internet, visiting helpful websites like Loans-101.com, to find mortgage programs that fit your budget, lifestyle, and future plans.