BERKSHIRE HATHAWAY HOMESERVICES FLORIDA NETWORK REALTY
Claudia Berger-Ayer, BERKSHIRE HATHAWAY HOMESERVICES FLORIDA NETWORK REALTYPhone: (904) 704-6079
Email: [email protected]

Great Mortgage Options to Consider

by Claudia Berger-Ayer 05/10/2020

Photo by Mastersenaiper via Pixabay

When it comes to financing your home, you have a several mortgage options available. Each type of mortgage offers different advantages, so be sure to do research before applying. Below are some of the most popular types of mortgages borrowers may consider. 

Conventional Loans

A conventional loan is a mortgage not insured by the federal government. In most cases, conventional loans will conform to the standards established by Fannie Mae and Freddie Mac. However, some lenders may offer loans that do not adhere to these standards, which are known as non-conforming loans. In most cases, conventional loans will require a down payment of 20 percent. Otherwise, you will have to pay mortgage insurance. 

FHA Mortgages

FHA mortgages are a popular type of government-backed loan that is designed to give people with lower credit scores and/or lower buying power the ability to purchase a home. If you opt for an FHA mortgage, you may not need to make as large of a down payment, but you will need to pay mortgage insurance. Backed by the Federal Housing Administration, these loans are popular among first-time homebuyers. 

VA Mortgages

VA mortgages are home loans backed by the U.S. Department of Veterans Affairs. These loans are available to current members of the military as well as veterans. If you qualify, VA mortgages are very beneficial, as they offer a lower interest rate and may not require a down payment. VA mortgages don’t require you to pay any mortgage insurance, either. 

Jumbo Mortgages

A jumbo mortgage is a loan that has limits higher than most other mortgages, which allows you to buy a more expensive property. These loans are most popular in areas where home prices are higher. Interest rates on jumbo mortgages are usually comparable to the rates paid on a conventional loan. However, the qualification requirements are much more strict. In most cases, you will need to show proof of significant assets, as well as a high credit score. Some lenders may offer other options, but the mortgages above are the most common. 

Keep in mind that even after you have chosen the type of mortgage you want, you will still have other decisions to make with regard to the type of rate and the length of the term. To make the best decision for your needs, consider working one-on-one with an experienced mortgage agent who can review your situation and help you choose the loan that makes the most sense.

About the Author
Author

Claudia Berger-Ayer

I am a bilingual English/German Real Estate agent and I provide full time real estate service for multi and single family homes. My expertise include certified buyers representation for relocations buyers, investment properties, resale purchase and first time home buyers as well as new construction specialist in Jacksonville and its surroundings. As a listing agent I leverage Berkshire Hathaway marketing strategies and resources as well as my knowledge as a Certified Real Estate Negotiator to touch all marketing options of exposure and maximize the seller’s net worth. My professional Real Estate experience also include extensive knowledge about short sales and foreclosure bid and purchase process. My strong leadership skills were developed due to my extensive national and international work experience within the United States and as flight attendant/On Board leader working for the German Air Force in Cologne Germany, Lufthansa AG in Munich, Berlin, and Frankfurt Germany, and Delta Air Lines Inc. in Boston and New York. So I understand the challenges and uncertainties relocation clients face. Living in Jacksonville Florida the last 19 years I call this my home and love the beauty of Northeast Florida. Sehr geehrter Immobilien Kunden, bitte schreiben Sie mir eine kurze e-mail und ich kann Ihnen gerne mehr Information von Jacksonville Florida zusenden! Ich lebe seit 18 Jahren hier in dieser wunderschoenen Stadt direkt am atlantischen Ozean und kenne alle Nachbarschaften fuer Einfamilienhaeuser and Eigentumswohnungen.