Buying a home is likely the most significant purchase you will make in your lifetime. Choosing the right type of mortgage in Pompano Beach is one of the most important decisions you will make as a homebuyer. With such a wide variety of loans out there, it may be difficult to find an affordable home loan that falls within your financial goals.
Call Ace Mortgage Loan Corp for help choosing a mortgage in Pompano Beach
Take an inventory of your debts, credit score, income and other monthly bills to help figure out how much house you can afford.
There are three key loan decisions you will make.
- Loan size: Conforming or non-conforming
- Interest rate: Fixed or adjustable
- Mortgage type: Government-backed or conventional
There are two main types of mortgages: a conventional loan, and a government-backed loan.
Most government-backed mortgages come in one of three forms:
- FHA loans, insured by the Federal Housing Administration, are designed for low-to-moderate income borrowers who are unable to make a large down payment.
- VA Loans are insured by the Department of Veterans Affairs and offer buyers low-or-no down payment options and competitive mortgage rates. VA loans are available to current military service members and veterans only.
- USDA Loans are geared toward rural and suburban homebuyers who meet income requirements. USDA loans are backed by the U.S. Department of Agriculture and are zero down payment home loans.
All three programs have low down payment requirements. Conventional loans, on the other hand, are offered and backed by private entities such as banks, credit unions, private lenders or savings institutions. Borrowers need good credit to qualify. Conventional loans have terms of 10, 15, 20, or 30 years. Compared to government-backed loans, conventional loans require much larger down payments. Borrowers are expected to put down at least five percent, but that amount varies based on the borrower’s credit history and the lender.
Deciding on a conventional or government loan may feel overwhelming. The type of loan you will apply for depends largely on your credit financial goals. If you need help sorting out which mortgage in Pompano Beach works best for you, contact Ace Loan Mortgage Corp. Our mortgage experts will help you find the rates and terms that fit your needs. Call us today at (954) 777-4774.