A variety of different types of mortgages are available for people who want to purchase or build a new home. Because there are so many options, it can be difficult to decide which type is best for you.
Types of Mortgages
- Conventional mortgages - Conventional mortgages are one of the most common types of mortgages used for home purchase. These loans are not insured by the government. In most cases, they will conform to standards established by Freddie Mac and Fannie Mae. However, non-conforming loans may be available from some lenders.
- Government-insured mortgages - Government-insured mortgages are mortgages backed by a government agency. These loans often have less restrictive qualification requirements. The most common government-insured loan is an FHA loan.
- Jumbo mortgages - Jumbo mortgages exceed federal loan limits, allowing you to purchase more expensive properties. Jumbo loans may be harder to qualify for than other types of loans.
- Construction loans - South Carolina new construction loans are designed to help you purchase a home that has not been built yet.
Making a Choice
In most cases, you will be able to decide which type of mortgage is best for you by reviewing your needs and comparing them to the loans available. For example, if you are buying an existing home and you meet all of the requirements established by Fannie Mae, a conventional mortgage is probably the best choice. However, if you want to build a new house based on your specifications, you will need a new construction home loan. To learn more, you need to make an appointment with an experienced loan officer.
Midland Mortgage can help you find the loan that's right for you. Contact us today to get started.