Four Popular Loan Options for Kentucky Buyers
One thing I find interesting about my job as a lender is that so many buyers do not realize that they have options! Many times potential homebuyers come into the mortgage lender ready to obtain a home loan, but they do not realize that not all home loans or mortgages are the same. Homebuyers in Louisville, or anywhere in Kentucky for that matter, have a number of options when it comes to choosing a home loan. If you plan to purchase a home in the near future, here are four of the more popular loan types that you may wish to consider.
- Kentucky Housing Loans – The Kentucky Housing Corporation is a public corporation dedicated to making home ownership a possibility for Kentucky residents. This is a specialty loan program, with 100 percent financing available, only for properties located in Kentucky and only for qualified buyers. Interested buyers must work with a KHC endorsed lender and the corporation to meet the standards, but it can allow some consumers to purchase, who may not have otherwise qualified for a loan.
- FHA Loans – FHA Loans are government-insured loans. This means there is less risk for the lender, in case of borrower default. The loan was originated to stimulate the housing market with a lower down payment requirement than conventional loans. In most instances, an FHA loan only requires 3.5 percent down; however, mortgage insurance may be necessary. There are certain standards a house (and borrower) must meet to qualify for an FHA loan. Your lender can help you understand these qualifications.
- Conventional Loans – Conventional loans are traditional loans. These do often have a higher down payment requirement—though not always the 20 percent quoted in years past. Limits and rates are usually determined through Freddie Mac or Fannie Mae.
- USDA Loans – The USDA (United States Department of Agriculture) makes loans available to people interested in buying, repairing or renovating homes in rural areas. They do not require cash down payment. There are strict property requirements, and the borrower must have a solid credit history to qualify.
If you want to learn more about the different types of home loans, and which one might be best for you, we would be thrilled if you would contact us at Liberty Financial.