The type of loan chosen will depend on the amount of the home, the credit history of the borrower, and the income of the borrower.
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For example a potential homeowner with good credit but a low income would be well matched with a fixed rate FHA insured loan. This would allow a low income buyer to take advantage of relaxed qualification criteria, low interest rates and little to no down payment. If the same buyer were to apply for a conventional loan a loan that is not federally insured he or she would be faced with high interest rates and a large down payment to make up for a lack of income.
As a result of current low interest rates many people who are renting are now looking into buying a home. There are many ways to obtain a home loan, and many have low down payments, low interest rates and low monthly payments. Apply online to contact up to four lenders about your home loan.
A buyer with a blemished credit would be more likely to qualify for an adjustable rate loan. Though this loan carries more risk since the interest rate adjusts with current interest rate indexes, adjustable rate loans usually come with low initial rates and safety caps to keep the rates from rising too high. Also, if the rates fall, it is possible for the borrower to save money.