Dreamscape Realty LLC

Choosing the Right Mortgage Type

by Dreamscape Realty LLC 01/05/2020

Photo by Alexander Stein via Pixabay

When it comes to a mortgage, most of us think of the same standard product; the 15 or 30 year conventional mortgage offered by banks and lenders. This is not the only mortgage option you have, though. Depending on your personal history and circumstances you may qualify for an attractive mortgage with lower rates and a small down payment. Examining your options and determining if you qualify for a less common type of mortgage allows you to have the greatest amount of flexibility and more options when it comes to your new home. Learning more about the different types of mortgages ensures you get the best possible terms when it comes to this significant purchase.

FHA, VA and USDA Loans: Explore your Mortgage Options

FHA Loans

An FHA loan is one that is insured by the Federal Housing Administration; if the buyer was to default or fail to pay, the FHA would pay the lender instead. Because of this guarantee, lenders are able to offer mortgages with less rigid requirements and accept more potential risk. FHA loans benefit the borrower in several key ways; they offer low down payments, credit score requirements of just 620 and that FHA guarantee for lenders. There are income guidelines and limits for the amount that can be borrowed, so you should check to see if your potential loan qualifies. A fast and easy approval process makes this a good option for many borrowers, though you should note PMI (Private Mortgage Insurance) is required and adds an additional amount to your monthly bill. 

USDA Loans

Often the most overlooked and misunderstood, a USDA loan is backed by the Department of Agriculture in the same way an FHA loan is backed by the Housing Administration. USDA loans are designed to help people in rural and suburban areas become homeowners and offer attractive rates and very low closing costs and down payments. If you are looking for a mortgage, it is worth checking your eligibility. Both your income and the home you are considering need to be eligible, but since an estimated 90% of the homes in the country qualify, USDA could be the right product for you.

VA Loans

A VA loan is backed by the Veteran's Administration and is available to active members and veterans of the US armed forces. This is the most attractive alternative to conventional loans of all, if you qualify. Designed to make it easy for service members to buy a home, this loan features little or no down payment, easy lending guidelines and appealing rates for veterans. If you qualify, the VA loan is an excellent option for your new home. 

Learning about your options makes it easy to find the right home mortgage for your situation. Chances are, you will qualify for one or more of the loan types above; you should compare the terms of the FHA, USDA or VA loan you are considering with a conventional mortgage to make the best possible choice for your new home purchase. 

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Dreamscape Realty LLC

Dreamscape Realty

Whether buying or selling your South Florida home, you can trust that Dreamscape Realty will be there to assist you from consult to closing.

Contact Dreamscape Realty today for more information on how we can help you with all of your South Florida real estate needs!

Your South Florida Buyer's Representative

Dreamscape Realty will be your buyer's representative and will help make the process of purchasing a home a smooth and seamless experience. We'll help with all of your buying needs from consult to closing. As local experts, we'll also be able to help you find the perfect neighborhood, based on a list of your desired features and must-haves. We'll save you time by only showing you homes that meet your search criteria.

Once you've found a home you'd like to make your own, we'll look at market statistics to help determine a purchase offer. Then, our team will negotiate on your behalf to ensure you're receiving the most favorable terms. We have your best interests at heart and we work hard to make sure your needs and expectations are not only met, but far exceeded.

If you're ready to start house hunting, you can search South Florida real estate listings now. You can also refer to our Buyer's Guide for helpful tools and buying advice. To start working with a Dreamscape Realty agent right away, please contact us.

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Dreamscape Realty understands that selling your home on your own can be a daunting , emotional and overwhelming task. From marketing your home to open houses to private showings to contract contingencies and more, selling your home can also seem complicated. Trust Dreamscape Realty to take care of the entire process for you. We have extensive experience in marketing properties and will use our expertise to sell your home quickly and for top-dollar.

We'll start by completing a comparable market analysis to help determine a competitive price for your home. We can also assist with home staging to help draw potential buyers in. Dreamscape Realty will market your home through a variety of methods and online marketing, promising the utmost amount of exposure. We may even showcase your home as part of our site's Featured Listings.

When it's time to negotiate a purchase offer, we'll make sure to get the best price the current market conditions will allow. We'll carefully explain contract contingencies and the closing process while completing all paperwork with a fine-toothed comb. Essentially, we're here to represent you throughout the entire selling process, and to make sure that your real estate transaction is a positive and profitable experience.