Choosing the right mortgage in today’s market can seem like an overwhelming task with the number of options homebuyers have today. At Hunter Creek Mortgage, Inc. we take the time to understand the needs of our clients so that we can offer only the most valuable mortgage options. Our extensive knowledge of the Idaho market allows us to offer fast approvals along with competitive rates and terms on purchase loans throughout Boise, Meridian, and Caldwell. Let’s take a look at some of the most popular purchase loans available.
Purchase loans from Hunter Creek Mortgage, Inc.
FHA Loans – An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). By guaranteeing home loans, lenders are protected in the event of borrower default. This allows FHA loans to be offered with more relaxed credit, income, and down payment requirements than comparable loans. FHA loans are very popular among first-time home buyers for these reasons.
VA Loans – VA loans are mortgages guaranteed by The U.S. Department of Veterans Affairs (VA). These loans are available exclusively to veterans, military, and their families. Those who are eligible will find that VA loans to be very beneficial. VA loans allow borrowers to purchase homes at great rates with no money down and no private mortgage insurance.
Conventional Loans – A conventional loan is simply a mortgage that is not guaranteed by a government agency. Government-backed loans like FHA and VA loans are capped at certain amounts. Buyers in need of higher loan amounts can find conventional loans to be very advantageous. Without protection from the government, lenders may be a bit more cautious when offering conventional loans. This can sometimes make them a bit more difficult to qualify for and higher rates may be charged. Borrowers with strong credit and larger down payment availability may find conventional loans to be a good fit.
Jumbo Loans – Jumbo loans are a unique type of conventional loan. Mortgages that meet Fannie Mae and Freddie Mac requirements are known as conforming loans. One restriction is that loans cannot exceed $417,000 (in most cases). Jumbo loans are conventional loans that simply exceed this amount. They are commonly used for luxury homes, second homes, vacation properties, and investment properties.
You will find fixed rate, adjustable rate, and hybrid rate options available for purchase loans. The type of rate that is best for you will be based on factors such as how long you plan to stay in the home or if you plan to refinance in the near future.
Fixed-Rate Mortgage – Fixed-rate mortgages are most commonly available as 15 year, 20 year, and 30 year loans. The interest rate on a fixed-rate mortgage will remain the same for the life of the loan. Fixed-rate mortgages can offer borrowers an added level of comfort knowing that their monthly payment will remain constant regardless of changes in the market.
Adjustable-Rate Mortgage (ARMs) – Adjustable-rate mortgages have an interest rate that will occasionally fluctuate. ARMs that start with a fixed-rate period before moving to an adjustable rate are called Hybrid ARMs. For example, a 5/1 Hybrid ARM has a 5-year fixed period followed by an adjustment to the rate each year thereafter. ARMs typically start with a lower rate than similar fixed-rate loans. Borrowers with plans to refinance soon after purchasing their home may find ARMs to be most beneficial.
Whether you are looking to purchase a home in Boise, Meridian, or Caldwell, Hunter Creek Mortgage, Inc. can help choose the best purchase loan for your individual needs. To find out more about the purchase loans available or to begin the pre-approval process, contact us today.