Are you in the market for a home loan in Matthews, NC? Our team at AmeriSouth Mortgage Company can not only help you get a home loan but can also provide you with detailed information about what you need to know as a potential new homeowner. As home loan professionals, we are highly knowledgeable about the home loan process. We can help you every step of the way.
What is a Home Loan?
A home loan is defined as a loan that is borrowed from a bank or other financial institution to buy a home. These loans consist of fixed rate or adjustable payment terms and interest rates. Home loans are often called mortgage loans.
The 8 Different Types of Home Loans
There are eight different types of home loans that you should be aware of before you start the application process. You may not qualify for all eight types of home loans, but you will have multiple loan options to choose from nonetheless.
- Fixed Rate Home Loans – Fixed rate home loans are the most common type of loan. This is a conventional loan that has one single interest rate and a regular monthly payment. These terms stay in place for the entire lifetime of the home loan. A typical fixed rate home loan last approximately fifteen to thirty years.
- Federal Housing Administration – This type of home loan is also known as an FHA loan. These loans are known for being backed by the Federal Housing Authority.
- Veteran’s Affairs Loan – This loan is commonly referred to as a VA loan. You must be a veteran of the military in the United States in order to qualify for a veteran’s affair loan. These loans come with special perks such as not requiring a down payment.
- Jumbo Loan – This type of loan exceeds loan limits set by regulation. The loan is not commonly applied for because such large amounts are not normally required to buy a home.
- USDA Loan – USDA loans normally are for families in rural areas, but are more commonly being available to suburban homeowners. A down payment is not needed with a USDA loan because the United States government finances one hundred percent of the loan.
- Reverse Mortgages – You must be a senior that is over the age of sixty two in order to qualify for a reverse mortgage.
- Investment Property Loan – An investment property loan is ideal for those who work in real estate. It is also ideal for vacation homes.
- Home Equity Loan – A home equity loan is a way for people who already own a home and want to consolidate debt or upgrade their home. The value of the home determines how much the loan amount will be.
If you are looking for a home loan in Matthews, NC, get in contact with our professional team at AmeriSouth Mortgage Company. We can help you determine which type of home loan is right for you and answer any queries you may have about the home loan process.