• FHA loan: This is a government loan from the Federal Housing Administration. It allows for lower credit scores and down payments, so it’s often helpful for first-time buyers. However, borrowers also have an upfront Mortgage Insurance Premium (MIP) as well as an annual MIP that gets paid monthly, so those costs are important to keep in mind. • VA loan: This government loan is solely for active military and veterans. It doesn’t require a down payment or mortgage insurance. • USDA loan: The United States Department of Agriculture gives out these loans. They’re specifically for people with low or moderate income in rural and some suburban areas. If you qualify, you get a mortgage rate that’s at below-market value and you won’t have to pay a down payment. Getting prequalified definitely relieves some of the stress for both sellers and buyers. That’s why I’m always happy to help with the prequalified process.
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