Make sure you are eligible for the mortgage you want. VA, FHA, USDA, and conventional loans have different eligibility standards.
Veterans, active duty military personnel, and surviving spouses who qualify can buy homes with a VA loan. You’ll need a Certificate of Eligibility (COE) to prove you meet eligibility requirements. Learn more with our how to apply for a VA Loan article.
These loans make homebuying easier when you have a moderate income or less money for a down payment. FHA loans can be obtained with as little as 3.5% down payment. However, there are limits on the price of the house you can buy. Read more about FHA loans for first-time homebuyers.
USDA loans make buying a home more affordable in rural and some suburban communities. This map will help show which communities are eligible. USDA loans have income limits that vary by location and household size.
Conventional loans generally require higher credit scores and have more financial and down payment requirements than VA, FHA, or USDA loans. However, you can use a conventional loan to buy a second home or investment property as well as a primary home. And you can often buy homes that are more expensive.
Your credit score, income, and finances
You will need to meet your lender’s credit, income, and financial standards to be approved for a mortgage. Your credit score is based on factors including how much debt you have, your credit history, and whether or not you pay your bills on time. Your credit score can affect the interest rate you might get too.
Find out how much home you can afford by asking Freedom Mortgage to pre-approve you for a mortgage. Continue reading “We’re here to guide you through every step of getting approved for a mortgage and buying a home!”